12 Key components of Operations Management

Product Development Process

Process and system performance (can be measured by examining, capacity, utilisation and productivity)

Just In Time (JIT) (system that matches the stock available exactly with demand and has the stock arriving just as it is needed)

Maintenance (to reduce frequency and impact of failures)

Scheduling (equipment, labour - allows optimal utilisation of labour and equipment)

Material Requirements Planning (managing inventory levels)

Inventory Management (stock control)

Location Strategies

Forecasting

Purchasing (centralised, decentralised or combined)

Quality (the ability of a product ti meet and preferably exceed customer's expectations)

Layout of facilities (to ensure smooth workflow)

Market based

Vertically differentiated location

Product based

design development & prototype

commercial evaluation

evaluation of ideas

final stages of product development

generation of ideas

Quantitative: historical data, facts, figures, statistics

Qualitative: personal insight, market surveys (values, opinions, perceptions)

Total Quality Management (TQM): whole organisation working towards zero defects