LU1 Chapter 11: Operations management
Theme 1: Importance of Operations Management
LO1: Explain the importance of operations management for a business
Theme 2: System Processes and Operational Design
LO2: Describe the components of an operations management model
LO3: Discuss the six general operations management performance objectives
LO4: Explain how the system of classifying process types according to manufacturing and
services may assist operations managers
LO5: Discuss operations design and how it needs to be managed
Theme 3: Operations Planning, Control and Improvements
LO6: Discuss operations planning and control, and how these need to be managed to
ensure efficient manufacturing of products and services
LO7: Discuss the management of operations improvement to provide more effective and
efficient manufacturing of products and service delivery to achieve a competitive
advantage
,Theme 1: Importance of Operations Management
LO1: Explain the importance of operations management for a business
4 main types of advantages:
Can reduce the cost of making products/offering services
Can increase the revenue business receives
Increase in sales due to good value for money or superior products
Can reduce the amount of capital investment needed to manufacture the product or
offer the service
Optimise functioning/ better use of facilities
Can provide the foundation for innovation
Use operational skills/knowledge to dev new products/services
Other advantages of operational management:
Can improve productivity
Higher productivity directly related to increased profit
Can help business satisfy the needs of its customers effectively
Good quality at reasonable price is NB due to competition
Can be decisive for reputation of the business
High quality prod/low cost/ good value for money
Defining operations management:
Operations management - is concerned with the management of the transformation
process where products are manufactured, or services rendered
Operations-management process includes operations planning, operations
organizing, operations scheduling and operations ctrl
Operations function
The function primarily aimed at the utilisation of resources to manufacture products or
render services
Operations managers
Personnel in the business directly responsible for managing the operations function
, Theme 2: System Processes and Operational Design
LO2: Describe the components of an operations management model
Inputs:
Both the resources that are to be transformed and the resources required to make
the transformation
The resources to be transformed:
Material
Processed and unprocessed materials are used as inputs
E.g. hair products for a hairdresser
Customers/clients
Can be the input when they themselves are the subject being processed
E.g. dental treatment or rock concert
Information
Primary input to be transformed: e.g. news for newspaper
Secondary input in transformation process: e.g. info about consumer
preferences i.t.o. colours when making a vehicle
Theme 1: Importance of Operations Management
LO1: Explain the importance of operations management for a business
Theme 2: System Processes and Operational Design
LO2: Describe the components of an operations management model
LO3: Discuss the six general operations management performance objectives
LO4: Explain how the system of classifying process types according to manufacturing and
services may assist operations managers
LO5: Discuss operations design and how it needs to be managed
Theme 3: Operations Planning, Control and Improvements
LO6: Discuss operations planning and control, and how these need to be managed to
ensure efficient manufacturing of products and services
LO7: Discuss the management of operations improvement to provide more effective and
efficient manufacturing of products and service delivery to achieve a competitive
advantage
,Theme 1: Importance of Operations Management
LO1: Explain the importance of operations management for a business
4 main types of advantages:
Can reduce the cost of making products/offering services
Can increase the revenue business receives
Increase in sales due to good value for money or superior products
Can reduce the amount of capital investment needed to manufacture the product or
offer the service
Optimise functioning/ better use of facilities
Can provide the foundation for innovation
Use operational skills/knowledge to dev new products/services
Other advantages of operational management:
Can improve productivity
Higher productivity directly related to increased profit
Can help business satisfy the needs of its customers effectively
Good quality at reasonable price is NB due to competition
Can be decisive for reputation of the business
High quality prod/low cost/ good value for money
Defining operations management:
Operations management - is concerned with the management of the transformation
process where products are manufactured, or services rendered
Operations-management process includes operations planning, operations
organizing, operations scheduling and operations ctrl
Operations function
The function primarily aimed at the utilisation of resources to manufacture products or
render services
Operations managers
Personnel in the business directly responsible for managing the operations function
, Theme 2: System Processes and Operational Design
LO2: Describe the components of an operations management model
Inputs:
Both the resources that are to be transformed and the resources required to make
the transformation
The resources to be transformed:
Material
Processed and unprocessed materials are used as inputs
E.g. hair products for a hairdresser
Customers/clients
Can be the input when they themselves are the subject being processed
E.g. dental treatment or rock concert
Information
Primary input to be transformed: e.g. news for newspaper
Secondary input in transformation process: e.g. info about consumer
preferences i.t.o. colours when making a vehicle
