UTC's ongoing efforts to increase quality, boost efficiency, and create
new, innovative products suggest how important it is for companies
to continually search for ways to improve the way they make and sell goods and
services. In this chapter, we examine why operations and materials management are
vital functions in a company's value chain. First, we define operations and materials
management (OMM) and explain how it can be such an important source of a company's
competitive advantage. Second, we look at the sources of OMM costs and
their relationship to profitability. Third, we describe three important forms of operating
systems a company can adopt to increase productivity and quality. Finally, we
look at three important materials management techniques that a company can use to
improve its performance and gain a competitive advantage. By the end of this chapter
you will understand the crucial role operations and materials management play in
terms of making better use of a company's resources and speeding goods and services
to customers.
