![]() ![]() Increased cross-functional decision making.Customers demand better quality, faster deliveries, and lower costs.Human relations movementđ930s to 1960s.All have scheduling and staffing issues.Each will have capacity, layout, and location issues.Both have quality, productivity, & response issues.The output from most operations is a mixture of goods and services PURE GOODS Tangible Can be stored Production precedes consumption Low customer contact CRUDE OIL PRODUCTION Can be transported ALUMINIUM SMELTING Quality is evident SPECIALIST MACHINE TOOL MANUFACTURER RESTAURANT COMPUTER SYSTEMS SERVICES Intangible Cannot be stored MANAGEMENT CONSULTANCY Production and consumption are simultaneous PSYCHOTHERAPY CLINIC High customer contact Cannot be transported Quality difficult to judge PURE SERVICES Source: Slack, 2001 Facilities include building, equipment, plant and process technology etc., Staff includes all those who operate, maintain, plan and manage the operation. Facilities and staff are the two types of transforming resources. Transforming resources – the resources that act upon the transformed resources. The transformed resources which operations take in are usually a mixture of materials, information and customers. Inputs Transformed resources – the resources that are treated, transformed or converted in some way. The input-transformation-output model T ransformed resources Materials Information Customers Goods Transformation Input Out put and process services T ransforming resources Facilities Staff Source: Slack, 2001 OM’s Transformation Role Source: Reid and Sanders, 2005. Some Activities of Ikea Operations Manager Design elegant products which can be flat packed efficiently Storage Quality Design Store Layout Site Location Typical Organization Chart Source: Reid and Sanders, 2005.Īctivities of Operations manager Understand the operation’s strategic objectives Developing an operation’s strategy for the organization Designing the operation’s products, services and processes Planning and controlling the operation Improving the performance of the operation. ![]() What is Operations Management? “ Operation Management is the set of activities that create goods and services through the transformation of inputs into outputs.” (Slack, 2001) Performance objectives of operations strategy.The role and activities of operation management.Learning Objectives What you will learn in this unit: This revised and fully updated edition of Operations Management continues to provide a clear, well-structured and comprehensive treatment of the subject, balancing a logical approach with the insights that come from operations practice around the world.Lesson 1 Fundamentals of Operations Management Operations Management Prepared by Sudarsan Jayasingh Operations management is also at the centre of so many of the changes affecting the business world - changes in customer preference, changes in supply networks brought about by internet-based technologies, and changes in the extent of environmental responsibility that we expect from companies. It is concerned with creating the products and services upon which we all depend and creating products and services is the very reason for any organization's existence, whether that organization be large or small, manufacturing or service, for profit or not for profit. Operations management is important, it is exciting, and it is challenging. ![]()
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