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Operations Management and Ethics. Operations Management and Ethics There
are many different definitions of operations management. ...
Submitted by wdespain on September 19, 2006
Category: Business
Words: 807 | Pages: 4
Views: 192
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Operations Management and Ethics
There are many different definitions of operations management. One of these is “the design, operation, and improvement of the systems that create and deliver the firm’s primary products and services” (Chase, Jacobs, & Aquilano, 2006). Another definition is the “management of the conversion process which transforms inputs such as raw material and labor into outputs in the form of finished goods and services” (Davis, Aquilano, & Chase, 1999). In short, this is an area that is focused on managing and improving business operations that convert inputs into outputs. This is very important to an organization because it can improve productivity and the ability to meet customer needs. This is central to building the reputation of the firm and having the ability to face competition.
In the pharmaceutical industry, there are times when an operations manager must make ethical decisions regarding the company’s supply chain during a public crisis. Some of these cases have been the availability of drugs such as Cipro (antibiotic) after the terrorist scare, the sudden need for smallpox vaccine, and the recent pneumococcal vaccine shortages. Drug product shortages can delay and compromise patient care and increase total costs, including those of alternative therapies, delivery devices, and staff training (ASHP Guidelines, 2001). Operations management in this industry typically needs to determine various scenarios and capacity constraints to ensure that their products are manufactured and distributed in a timely manner according to customer demand. In addition, during times of crisis, ethical considerations must be made because there may be people suffering or even dying due to a drug shortage.
Many drug companies manufacture a large quantity of different products often using the same resources, equipment, and facilities. Therefore, operations managers generate production schedules to meet their company’s...
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