Operations Management

Operations ManagementO Operations management is about

producing goods and/or services based on business objectives

Business objective

s

Business strategie

s

Productivity Competitiveness

Operations System

Inputs Processes Outputs

Role of the Operations Manager

Management FunctionsO Planning – objectives and courses

of action or strategiesO Organising – resources to produce

goods and/or servicesO Leading – motivating and coaching

people through changeO Controlling – organisational

processes and systems

Operations Management

O It is concerned with creating, operating and controlling a transformational process that takes inputs from a variety of resources and produces outputs of goods and services, to satisfy customer demand.

O Tangible and intangible

Key elements of an operations system

Operations ManagementFacilities locationConsideration must be

given to proximity to: O CustomersO Raw materialsO Labour forceO CompetitorsO infrastructure

Facilities design & layout

Factors to considerO Job flowO Materials flowO Equipment

movementO Capacity output

requirementsOperations layoutsO Process layoutO Product layoutO Fixed position layout

Productivity and business competitiveness

O Competing on costO Competing on qualityO Competing on speed of delivery

Facilities design and layout

O Manufacturing layoutsO Fixed position layoutO Product layout

O Other layoutsO Process layoutO Retail layoutO Office layout

Materials managementO The strategy that manages the use,

storage and delivery of materials to ensure the right amount of inputs is available when required in the operations system.

O Materials planningO Production planO Master production scheduling (MPS)O Materials requirements planning

(MRS)O Inventory Control

O Just in timeO Supply change management

The management of quality

O Quality controlO Quality assuranceO Total quality management (TQM)

O Employee empowermentO Continuous improvementO Customer focus

Use of technologyO Office technologyO Customer relationship managementO Manufacturing technology

O RoboticsO Computer Aided Design (CAD)O Computer Aided Manufacture (CAM)O Computer Integrated Manufacturing

(CIM)

Ethical and socially responsible managementO Managing inputs appropriatelyO Managing suppliers appropriatelyO Managing staff appropriatelyO Managing the customer relationship

appropriately

Key Knowledge – Study Design

O The operations function and its relationship to business objectives and business strategy;

O Characteristics of operations management within large-scale manufacturing and service organisations;

O Key elements of an operations system (inputs, processes and outputs) in different types of large-scale organisations;

Key Knowledge – Study Design

O Productivity and business competitiveness, their importance for an impact on the operations system;

O Strategies adopted to optimise operations; including;O Facilities design and layoutO Material managementO Manage of qualityO Extent of the use of technology

O Ethical and socially responsible management of an operations system.

Exam QuestionsO Question 4 - 2010O The Charity Foundation is a service

organisation assisting children who have been affected by natural disasters. It aims to raise money and collect goods to distribute to children in need. Identify and explain the key elements of The Charity Foundation’s operations management system. In your answer provide one example of each key element. (6 marks)

Exam QuestionsO Question 5 – 2010 Ethical and

socially responsible management is an important part of an operations management system. Identify and describe two operations management strategies. Discuss the benefits to an organisation of adopting an ethical and socially responsible approach to management in these areas. (6 marks)