CIPS L5M9 Operations Management LO1 exam with complete solution graded A+

Operations Management - The processes of managing the resources and processes involved in the acquisition and transformation of inputs and the distribution of outputs. Five Key Performance Dimensions / Performance Objectives - Slack and Brandon-Jones - 1. Quality 2. Speed 3. Dependability 4. Flexibility 5. Cost Quality - Producing products and services that satisfy customer needs. Speed - Ensuring a short lapse of time between when orders are made and fulfilled. Dependability - Producing products that are reliable and consistent. Flexibility - Adapting to changes in demand or marketplace changes. Cost - Producing products and services at minimum cost. Operation - Smallest divisible piece of work or activity within an organisation. CREATING FLOW Production Methods - 1. Make to Order - craft production. Does not commence until an order has been received. 2. Mass Production - make to stock - low variety / high volume 3. Mass Customisation / Late Customisation - mix between made to order and mass production. Products standardised to a certain point e.g. DellI T O - Input - Transformation - Output The market is the point in which an output transforms into an input Input - * Materials * Information * Customers Transformation - * Facilities * Staff * Infrastructure e.g. road, rail, air * IT * Marketing Four V's - 1. Volume - quantity of products / services produced 2. Variety - of products / services produced 3. Visibility - of the process to customers 4. Variation - changes in demand for products / services Order Qualification - Competitive standards that make an organisations products viewed as fit for purpose by customers Order Winning - Standards that separate the products from on organisation to another