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operations management (what is it? (transformational change…
operations management
what is it?
responsible for
efficient delivery
goods
services
through effective management
resources
meet customers needs
manage processes
asset control
effective planning and control systems
process design
input-process-output model
management input
facilities
staff
equipment
customers
suppliers
transport
materials
energy
information
managing processes
process flow
work in progress
process design
planning and scheduling
progressing and control
system improvement
managing outputs
products and services
customer satisfaction
unit costs (profitability)
environmental impact
transformation processes
material processing
manufacturing
mining ops
logistics ops
shipping
warehousing
postal
information processing
banking
accounting
research
customer processing
hotel
hairdresser
hospital
transformational change
physical
food
chemicals
machining
informational
data in reports
booking info
possesion
change in possession of goods
location
logistics process
getting material to location
customer transport
storage
warehouse
waiting room
servers
physiological/psychological
medical treatments
mental health councelling
feeling after beauty treatments
emotions after a theme park ride
what do they do?
organise inputs
manage outputs
manage processes
transformation processes = biggest focus
divided into 3
design the process
product/service design
layout and flow
planning and control
workforce planning
shift patterns
work allocation
scheduling orders
capacity plans
stock control
quality
error correction
improvement
new product introduction
continuous
lean thinking
team based quality improvement
the importance
make a positive impact
reducing costs
efficiency
enhancing revenues
providing marketable goods and services
quality
service
innovation
developing capabilities
allowing efficient market service
allowing new market entry
minimising capital needed
hayes and wainwright 4-stage model
operations strategy
stage 1
internally neutral
minimise negative impact
lowest levels of capability
regularly underperforms
stage 2
externally neutral
as good as competitors
no source of advantage
not a source of new ideas
no competitive impact
most common stage
stage 3
internally supportive
offers best capabilities in the sector
help to achieve brand strength
linked to competitive strategy
stage 4
externally supportive
huge competitive advantage
entire organisational strategy build around operation
very rare level
can be a source of risk
if goes wrong, huge negative impact
on revenues
on reputation
on competitiveness