CIPS L5M9 Operations Management LO1

CIPS L5M9 Operations Management LO1 Operations Management - answerThe 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 - answer1. Quality 2. Speed 3. Dependability 4. Flexibility 5. Cost Quality - answerProducing products and services that satisfy customer needs. Speed - answerEnsuring a short lapse of time between when orders are made and fulfilled. Dependability - answerProducing products that are reliable and consistent. Flexibility - answerAdapting to changes in demand or marketplace changes. Cost - answerProducing products and services at minimum cost. Operation - answerSmallest divisible piece of work or activity within an organisation. CREATING FLOW Production Methods - answer1. 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. Dell I T O - answerInput - Transformation - Output The market is the point in which an output transforms into an input Input - answer* Materials * Information * Customers Transformation - answer* Facilities * Staff * Infrastructure e.g. road, rail, air * IT * Marketing Four V's - answer1. 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 - answerCompetitive standards that make an organisations products viewed as fit for purpose by customers Order Winning - answerStandards that separate the products from on organisation to another Hayes & Wheelwrights 4 Stages of Operations Readiness - answer1. Internal Neutrality 2. External Neutrality 3. Internally Supportive 4. Externally Supportive Internal Neutrality - answerOperations function makes a minimal contribution to the overall corporate strategy. Stage 1 - correct the worst problem External Neutrality - answerOperations function compares itself with similar businesses or organisations. Actively keeping pace with comparable companies in the same industry. Stage 2 - adopt best practice Internally Supportive - answerOperations management function delivers the best capabilities to the organisation, contributing to the organisations overall competitive strategy. Stage 3 - link strategy with operations Externally Supportive - answerOperations management function delivers competitive advantage through its capabilities and performance. Stage 4 - give an operations advantage