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Block 1: Session 8 - Operations Management (What is operations management?…
Block 1: Session 8 - Operations Management
What is operations management?
Efficient delivery of goods and services to customers through effective management of the organisations resources.
Need to make sure assets are not kept unnecessarily or wasted.
Good process design, effective planning and control systems
The operations input-process-output model
Management input resources - Managing processes - Managing outputs
Framework that explains and characterises operations management in all economic sectors, covering both manufacturing and service, in public and private markets of all sizes
Was extended by Slack et al. (2011) - See online resources and 'What do operations managers do?' arm.
Transformation processes (Walley, 2017)
Material processing
Information processing
Customer processing
Transformational change
Physical
Informational
Possessional
Location
Storage
Psychological or psychological
Produce goods and services that customers want at the right time, in the right location
Must be achieved without overspending or excessive resource consumption.
Consider environmental impact
What do operations managers do?
Long-term developments are often pushed back by short-term problems
This can be avoided by good long-term decision-making in areas such as supplier selection, supply chain design, technology, maintenance, quality planning and scheduling.
Simplicity is usually preferred -Limited variety, stable schedules, standardised methods of working .
Can be threatened by external market environments
Roles suggested by input-process-output model
Organising the input resources
Managing the outputs
Managing processes
Slack et al. divined the process management tasks into three separate areas (See book and online video)
Design
Planning and control
Improvement
Importance
Positive impact
Reducing costs
Enhancing revenues
Minimising the capital needed
Developing capabilities and competences
Hayes and Wheelwright four-stage model
Stage 1 - Internally neutral
Stage 2 - Externally neutral
Stage 3 - Internally supportive
Stage 4 - Externally supportive
Helps understand the role of operations in a competitive market
Risk
If operations go wrong, it can effect revenue,competitiveness or reputation
Example - BP oil spill in 2010