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TOPIC 6 - WHAT IS OPERATIONS MANAGEMENT (Operations and Process management…
TOPIC 6 - WHAT IS OPERATIONS MANAGEMENT
Operations and Process management
relevant to all managers
not all the same
all parts of org. made up of processes
What is OM?
resources organised into individual processes
Process: arrangmnt of resources and activities -transform inputs into outputs to satisfy customer needs
OM principle: all operations composed of processes
TRANSFORMATION PROCESS
INPUTS
TRANSFORMATION
OUTPUTS
REQUIRES ANALYSIS AT THREE LEVELS
Supply network
flow between operations
the operation
flow between processes
process
flow between resources
outputs from operations and services
pure products
pure services
mix of goods and services
Typology of operations
Volume
Variety
variation in demand
visibility
Nature and purpose of design
design of product/service impacts design of processes
How to judge design of process?
quality
speed
dependability
flexibility
cost performance
impact of performance objectives on design
quality: provide appropriate resources
speed: minimum throughput time
dependable: provide dependable process resources - output timing / volume
Flexibility: Provide resources with an appropriate range of capabilities
Change easily between processing states (what, how or how much is being processed?)
Cost:
Low processing costs
Low resource costs (capital costs)
Low delay/inventory costs (working capital costs)
Designing Processes
Different types of processes
defined by
Volume
Variety
whether service or product
Jobbing
batch
Mass
professional services
Service shops
Process Mapping
symbols
relates processes
flow of materials/information