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Reading 11: Introduction to Operations Management - Coggle Diagram
Reading 11: Introduction to Operations Management
WHAT IS OPERATIONS MANAGEMENT?
efficient delivery of goods and services to customers through effective management of resources.
making sure assets are not kept unnecessarily or wasted
good process design, effective planning, improvement processes
input-process-output model
management of customers is a key task
right goods, right time, right location
assess environmental impacts of operations
three main types of transformation process
material processing
manufacturing operations, mining operations, logistical operations
information processing
banking, accounting, news services, telecommunications, research organisations
customer processing
most people don't like to think of themselves being 'processes' as a customer
what type of transformation takes place?
physical transformation
informational transformation
possession transformation
location transformation
storage transformation
physiological/psychological transformation
WHAT DO OPERATIONS MANAGERS DO?
organising the input resources
decide what resources to obtain to serve their market requirement
subject to constraints
financial restrictions
lack of available skill sets
decisions change over time due to markets and strategies changing
managing outputs
providing products/services that meet customer needs, on time, to a high standard
must meet market requirements
managing processes
the design of processes
production/service design
layout and flow, especially detailed layout
planning and control
workforce planning
shift patterns
stock control
work allocation
scheduling of others
capacity plans
quality planning and control
error correction
improvement
continuous improvement
'lean thinking'
new product introduction
team-based quality improvement
short-term vs long-term perspectives of operations management
long-term development activities are sometimes pushed back
short term crisis need to be prioritised, e.g., machine breakdown
many short term problems can be reduced or prevented by good long term decision making
simplicity vs complexity
the best operations processes are usually simple to understand
THE IMPORTANCE OF OPERATIONS MANAGEMENT
reducing costs through efficient operations
minimising capital needed to establish a viable operation
enhancing revenues by having more marketable goods/services through quality, service and innovation
developing capabilities and competencies that allow markets to be served more effectively or new markets entered
the Hayes and Wheelwright four-stage model
stage 2: externally neutral
objective is for 'operations' to help the business maintain equality with its competitors
stage 3: internally supportive
objective is for 'operations' to provide credible support for the business strategy
stage 1: internally neutral
objective is to minimise the negative impacts of 'operations'
stage 4: externally supportive
objective is for 'operations' to provide a source of competitive advantage
ARE YOU AN OPERATIONS MANAGER?
most supervisors and managers in all sectors have an operations manager role even if 'operations' and 'manager' are not in your job title
OPERATIONS AS A SOURCE OF RISK
when operations go wrong, this can impact badly on an organisation's revenues, competitiveness or reputation
catastrophic failures within operations have led to significant harm to the public, environment, and to the organisations concerned