Production and Operations Management Systems Chapter 1: Introduction

The Stages of P/OM Development

• The stage reflects the degree to which a company’s activities have been coordinated and carried out.
• The stage determines company effectiveness and efficiency.
• As a company improves its stage of operations, it is expected that its profitability will increase.
• However, it is necessary to relate the company’s stage of development to that of its competitors.
• Each company’s input–output profit model indirectly and directly reflects the impact of the competitors’ input–output models.