Operations Management
The management of resources to achieve efficient output of goods or services
Inputs
refer to the resources that are used to produce the org's goods or services.
raw materials
human resources
information and knowledge
capital, plant and equipment
technology
time
Processes
refer to any activity the org undertakes to transform inputs in to outputs
Outputs
refer to the end result of an org's transformation process - the final good or service that is delivered to the cutomer
Manufacturing vs service
- tangible vs intangible
- standardised vs customised
- minimal customer contact vs high level of customer contact
Technology (refers to any tool used by employees to assist in the designing, producing, and selling of a good/service)
Benefits
less reliance on labour
more efficient processes
more precise; less waste
improvements in quality
Negatives
de-skilling of manufacturing tasks
initial expenses
Robotics
refer to highly specialised computerised technology that undertakes complex and/or repetitive tasks in the production process
Computer-aided design (CAD)
refers to the use of computers and software to prepare product designs, which can then be reviewed, examined, evaluated and changed without the need for a physical prototype being built.
Computer-aided manufacturing (CAM)
refers to the use of computer software in the control and design of the manufacturing process.
E-commerce
refers to the use of ICT tools (internet) and systems to buy and sell products electronically.
Materials management (the strategy which manages the use, storage, and delivery of materials to ensure the right amount of inputs are available when required in the operations system)
Materials planning
- Production plan
refers to outlining the activities undertaken to combine resources (what, how, where, when)
- Master production scheduling (MPS)
a plan of what will be produced, when it will be produced, the quantity in which it will be produced, and where it will be produced
- Materials requirements planning (MRP)
involves developing an itemised list of all materials involved in production to meet the specific orders
Inventory control
Just-in-time method
inventory control approach that focuses on materials arriving just as they are required in the production process.
Supply Chain Management
involves the planning and management of all activities involved in:
sourcing
procurement
storage
development of partnerships
Quality management (ensuring outputs are consistently reliable, durable, and free from defect)
Quality control
refers to a process where products and services are regularly inspected and evaluated during production/ delivery to ensure they meet acceptable standards
Quality assurance
refers to a process through which an org receives endorsement and certification that its systems and processes meet acceptable quality standards by an external org.
Total quality management (TQM)
refers to a quality system that takes a 'whole org' approach to achieving and maintaining quality at every stage of the production process.
- continuous process improvement
- customer focus
- defect prevention
- universal responsibility
Facilities, design, and layout (refers to the designing of the best physical layout for the org's facilities and workplace to ensure production and/or service delivery flows smoothly, effectively, and efficiently)
Product layout
layout in which good are moved from workstation to workstation in a sequential order, with components added to the product in steps
mass production using an assembly line
Fixed - position layout
layout in which the product remains in the one location and the workers and machinery come to it, as it is too difficult to move the product
Process layout
layout in which the equipment and work centres are arranged according to similarity of function
facilities are designed to handle a variety of processes