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Model of transformation and five performance objectives - Coggle Diagram
Model of transformation and five performance objectives
Operation management is the activity of managing the resources that create and deliver services and products
The input-transformation-output process p2 - 3
Materials
Transform their physical properties (shape or composition)
Change their location (parcel delivery
Change the possession/ownership of the material
Store the material (warehouses)
Information
Transform the informational properties/purpose/form of the information (accountant)
Change the possession of the information (market research companies selling information)
Store the information – archives/libraries
Change the location of the information (telecommunication companies)
Customers
Passive
Change physical properties (hairdressers)
Accommodating customers (hotels)
Transform the location of customers (airplanes)
Transform their phycological state (hospitals)
Transform their psychological state (TV or theme parks)
Active
Creating an atmosphere in restaurants
Provide a stimulating environment in learning groups
Levels of Performance p3 - 6
The operation level, using the five operations performance objectives
This involves
Cost
Speed
Dependability
Flexibility
Quality
The broad, societal level, using the idea of the triple bottom line
The strategic level – how an operation can contribute to the organisation’s overall strategy
This impacts
Cost
Revenue
Required level of investment
Risk of operational failure
Building the capabilities for future innovation
Operations and processes p6
They differ through the four Vs
Volume of output
Variety of their output
The variation in the demand
The degree of visibility customers have in the creation of their output
Operations strategy p7 - 21
This is concerned with the pattern of strategic decisions and actions that set the role, objectives, and activities of the operation
two aspects are
The content
The process
Stages of operations contribution (Hayes and Wheelwright's)
1: Internal neutrality
2: External neutrality
3: Internally supportative
4: Externally supportive
Perspectives on OS
top-down reflection of what the whole group or business wants to do
bottom-up activity where operations improvements cumulatively build the strategy
involves translating market requirements into operations decisions (outside-in perspective)
involves exploiting the capabilities of operations resources in chosen markets (inside-out perspective)
OS decisions
The range and type of services and products that it produces
The scope of its activities in its supply network
Where it is to be located
OS process
formulation
Implementation
Monitoring
Control