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Intro to OPERATIONS MANAGEMENT - B207, Block 1, Reading 11 (Input-Process…
Intro to OPERATIONS MANAGEMENT - B207, Block 1, Reading 11
Input-Process-Output model
PROCESS
Process design
Planning/scheduling
Work-in-progress
Progressing
Control
Process flow
System improvement
Customer
Output
Customer satisfaction
Unit costs
Profit
Services
Environmental impact
Products
Input
Customers
#
Suppliers
Staff
Transport
Equipment
Materials
Facilities
Energy
Information
All economic sectors
Manufacturing
Service
Private
Public
Transformation
Processes
Information
News services
Telecommunications
Accounting
Research organisations
e.g. Data collection
Banking
e.g. Money transfer
Less visible
Accuracy key
Customer
e.g. Theme park
e.g. Hairdressers
e.g. Hospital
Material
Mining
Logistics
Trucking
Warehousing
Shipping
Postal
Manufacturing
Retail
Type
Informational
Data transformation
Data processing
Recording bookings
Possession
Retail
Property
Data sharing
Physical
Pure manufacturing
Chemical transformation
Food prep
Location
Customer transport services
Logistically
Storage
Inventory
Warehouse
Customers
Waiting rooms
Data
Servers
Unnecessary storage
"Waste"
Physiological or psychological
Medical
Surgery
Counselling
Emotional
Spa
Hairdresser
Scary ride
Bakery example
Key differences
Material processing
Scheduled
What & when
Information processing
Human vairables
Peaks/troughs
Operation manager roles
Managing outpits
Products
Services
Timely
High standards
Market requirements
Interdepartmental requirements
Managing processes
Planning & control
Schedule activities
Stock control
Shift patterns
Quality assurance
Timeliness
Quality
Capacity plans
Error correction
Improvement
Continuous improvement
Lead on improvements
LEAN
New product introduction
Design processes
Across functions
Customer needs
Effectively
Efficiently
Bad Process = poor performance
Layout/flow
Products/service
Best often simple
Organising inputs
Facilities
Equipment
People
Hayes & Wheelwright (1984)
Four-stage model
Stage 1
Internally neutral
Holding organisation back
Under performs
Regular mistakes
Poor quality goods
Poor service
Focus
Solving short-term issues
Unable to service existing
Unable to develop new
Stage 3
Internally supportive
Operations
Competitive strategy
#
Exploit ops
Better prices
Differentiated products
Faster deliveries
flexible
Increase market share
Stage 2
Externally neutral
As good as competitors
No operational advantage
aware of capabilities
Good enough
Delivers organisational strategy
Not a source of ideas
Development outside of core activities
Highest proportion
Stage 4
Externally supportive
Few achieve
Competitive advantage
Drive organisation strategy
Risk
Claims v actual
Sustainability issues
Poor working conditions
Harm
Public
Environment
Organisation
e.g. Deep water horizon