self study - operations management

8/6/2019 SELF STUDY - Operations Management

1/15

Rerefence Book : Neigel-Slack, 5th Edition

OPERATIONSMANAGEMENT

Self Study Summary Notes


2/15

Operations Management is: The activity of producing and delivering of

products and services that satisfy market

requirements.


3/15

OPERATIONS MANAGEMENT

FUNCTIONS

Product/Service Development function

Marketing function

CORE FUNCTIONS

Information Systems function

Human Resources function

Accounting & Finance function

Technical function

SUPPORT FUNCTIONS


4/15

O.M PROCESSES CONCERNS

Process Design : ( ex: arranging the stores layout to give smooth andeffective flow of customers)

Product Design : (ex: designing stylish products that can be flat-packed

efficiently)

Job Design : (ex: making sure that all staff can contribute to the

companys success) Supply Network Design : (ex: locating stores of an appropriate size in the

most effective place)

Supply Chain Management : (ex: arranging for the delivery of products to

stores)

Inventory Management : (ex: avoiding running out of products for sale) Quality Management : (ex: monitoring and enhancing quality of service to

customers )

Operations Improvement : (continually examining and improving

operations practice)


5/15

All operations produce products and services bychanging inputs into outputs. They do this by using the

inputtransformationoutput process.

THE TRANSFORMATION PROCESS

Within any operation, the mechanisms that

transform inputs into outputs are called

processes


6/15

the volume of their output;

the variety of their output;

the variation in the demand for their output;

the degree ofvisibility which customers have of

the production of the product or service.

OPERATIONS PROCESSES

CHARACTERISTICS


7/15

CHARACTERISTICS IMPLICATIONS


8/15

OPERATIONS MGMT ACTIVITIES

Understanding the operations strategic objectives.The first responsibility of any operations management team is to understand

what it is trying to achieve. This means developing a clear vision of how the

operation should help the organization achieve its long-term goals. It also

means translating the organizations goals into their implications for the

operations performance objectives, quality, speed, dependability, flexibility

and cost.

Developing an operations strategy for the organization.

Operations management involves hundreds of minute-by-minute decisions, so

it is vital that operations managers have a set of general principles which

can guide decision making towards the organizations longer-term goals.

This is an operations strategy.

Designing the operations products, services and processes.

Design is the activity of determining the physical form, shape and composition

of products, services and processes. Although direct responsibility for the

design of products and services might not be part of the operations functionin some organizations, it is crucial to the operations other activities.


9/15

OPERATIONS MGMT ACTIVITIES

Planning and controlling the operation.

Planning and control is the activity of deciding what the operations resources

should be doing, then making sure that they really are doing it.

Improving the performance of the operation.

The continuing responsibility of all operations managers is to improve theperformance of their operation.

The broad responsibilities of operations management.

Many businesses are increasingly recognizing that operations managers have

a set of broad responsibilities and concerns beyond their direct activities

described previously. All businesses will interpret these broader

responsibilities in different ways. Five that are of particular relevance to

operations managers are the effects of globalization, the pressures for

environmental protection, the increasing relevance of social responsibility,

the need for technology awareness, and how knowledge management is

becoming an important part of operations management.


10/15

WHY IS O. MGMT SO IMPORTANT?

All the activities of operations management can very significantly contribute tothe success of any organization by using its resources effectively to produce

goods and services in a way that satisfies its customers. To do this it must

be creative, innovative and energetic in improving its processes, products

and services. In fact, an effective operation can give four types of

advantage to the business.

it can reduce the costs of producing products and services and

being efficient;

it can increase revenue by increasing customer satisfaction

through good quality and service;

it can reduce the amount of investment (sometimes called capital

employed) that is necessary to produce the required type and

quantity of products and services by increasing the effective

capacity of the operation and by being innovative in how it uses its

physical resources;

it can rovide the basis forfuture innovation


11/15

HOW CAN OPERATIONS AFFECT PROFITS?


12/15


13/15

Operations management is the activity of managing the resources which are

devoted to the production and delivery of products and services. It is one of thecore functions of any business, although it may not be called operations

management in some industries. The span of responsibility varies between

companies, but will usually overlap with the other functions.

Operations management is concerned with managing processes. And all

processes have internal customers and suppliers. But all management functions

manage processes. Therefore, operations management has relevance for all

managers.

WHAT IS OPERATIONS MANAGEMENT?

Operations differ in terms of the volume of their outputs, the variety of outputs they

produce, the variation in demand with which they have to cope and the degree ofvisibility or customer contact they have.

High volume, low variety, low variation and low customer visibility are usually

associated with low cost.

How are operations different from each other?


14/15

All operations can be modelled as inputtransformationoutput processes. They

all have inputs of transforming resources, which are usually divided into facilitiesand staff, and transformed resources, which are some mixture of materials,

information and customers.

Few operations produce only products or only services. Most produce some

mixture of tangible goods or products and less tangible services.

All operations are part of a larger supply network which, through the individual

contributions of each operation, satisfies end customer requirements.

All operations are made up of processes that form a network of internal

customersupplier relationships within the operation.

End-to-end business processes that satisfy customer needs often cut across

functionally based processes.

What are the similarities between all operations?


15/15

Responsibilities include the translation of strategy into operational action, the

design of the operation (not only the products and services themselves but thesystems or processes which produce them), the planning and controlling of the

activities of the operation and the improvement of the operation over time.

Operations management can have a profound effect on reducing the costs

incurred by an organization, increasing its revenue, reducing the amount of

investment needed and providing the basis for future innovation.

It is increasingly important because a more turbulent and dynamic business

environment requires new thinking from operations managers.

Because of the cost structure of many organizations, improving operations

practice can be the most effective way to improve the financial performance of theorganization.

What do operations managers do and why is it so important?

self study - operations management

Documents