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Reading 11 - Introduction to Operations Management - Coggle Diagram
Reading 11 - Introduction to Operations Management
What is operations management?
responsible for efficiency - managing resources to meet customers needs and delivery of goods and services
Figure 1 page 90 - Input-Process-output model
Op Managers - have to carefully use outputs, ensure the process is done correctly and the output runs smooth
Transformation processes
Material Processing = manufacturing operations
Information processing = processing info banks, It etc
Customer processing = customer facing, hotel, theme parks etc
Physical transformation - turning ingredients/ pieces into end product
Informational transformation = transferring data / reports, data processing
Possession transformation = shops changing possession from one to another (selling)
Location Transformation = materials to/from suppliers/customers
Storage Transformation = inventory in warehouse., data on servers etc
physiological or psychological transformation = medical treatments, mental health services, feelings after have a service at hairdressers etc
Page 92 & 93 example tables of transformation process
What do Op Managers Do?
Organising Input resources - decide resources, facilities and people needed to be involved whilst working to budgets ettc
Managing the outputs = manging timings for products/services to customers expectations. Must understand requirements, make delivery promises, don't over promise what wont be possible
Managing Processes - transformation processes
The design of processes - must work with others to design & develop processes to meet customers needs - if not done well will lead to poor outputs
Planning and control - scheduling staff, works, activities including quality control activities, including systems to raise poor quality lack of stock etc
Improvement - increasing emphasis on quality improvement
Table 3 page 96 Operations management activities
Short Term Vs long term perspectives of op management = Long term plans may get pushed back to deal with short term crises although if planned out well in long term there is less likelihood of short term problems
Simplicity Vs Complexity = best flow, simple and steady, not complex with changes last minute.
The Importance of Operations Management
Op Man, can make positive impact on
reducing costs through efficient operations
enhancing revenues by providing more marketable goods and services through quality, service and innovation
minimising the capital needed to establish a viable operation
developing capabilities and competences that allow markets to be served more effectively or new markets entered
The Hayes and Wheelwright four stage model
Figure 2. Page 97
model helps understand role of operations in competitive market
Stage 1: Internally neutral = lowest level of capability, holds org. back, due to underperformance relative to market requirements and/or regularly makes mistakes delivering low quality product/service. No future development, dealing with short term problems
Stage 2: Externally neutral - as good as their competitors at sertving market - no specific advantage. striving for best practice in industry. New development done outside of operations dep.
Stage 3: Internally Supportive: Offers best capabilities in sector and competitive strategy linked to ops. org exploit operations to offer better prices, faster delivery etc. Achieving recognition for good quality helps market advantage
Stage 4: Eternally Supportive = not common level, service/product/competitive advantage based on ops capability
Operations as Source of Risk
when operations go wrong can affect brand identity, profits, customers, b2b, reputation etc
BP Deepwater Horizon
If org claims of good business is not lived up to
Adopting poor supply chain where there are poor working conditions for some
Are you an Op Manager?
Very inclusive title and includes all people without it in their job title
input -process - output