Chapter 11 Operations management
What is operations management
The management of the transformation process, (the operations process) whereby products are produced or services
provided
Importance of operations management
Focus on needs and develop strategies to maintain / strengthen / increase competitive edge and customer base
Cost Management Efficiency Innovation
Increase revenue Quality Control Strategic Operations Alignment
Reduce number of investments Customer Satisfaction Risk Management
Motivation for new innovation Supply Chain Management Resource Utilisation
Defining terms used in operations management
Operations function Operations managers Operations management
Function is primarily aimed at the Personnel in the business directly Operations manager’s activities,
utilisation of resources to responsible for managing the decisions, and responsibilities that tie
manufacture products or services operations function in with the execution of operations
function
Operations management model
, Performance objectives
Do things right the first time
Quality: Ensuring products or services meet standards and customer expectations
Do things cost effectively
Cost: Managing expenses effectively to optimize profitability
Do things quickly
Speed: Minimizing lead times and response times to enhance efficiency
Make changes quickly
Flexibility: Adapting operations to accommodate changes in demand or market conditions
Do things right every time
Dependability: Consistently delivering products or services on time and as promised
Do things better
Innovation: Introducing new ideas, processes, or products to stay competitive and meet new needs
6 main elements of customer needs
Higher quality
Lower cost
Shorter lead time (quicker manufacturing or provision of services)
Greater adaptability (flexibility)
Lower variability (reliability)
Better service
Operations management guidelines Positive results
Do things right the first time Higher quality
Do things cost effectively Lower cost
Do things quickly Shorter lead time
Make changes quickly Greater adaptability
The transformation model
The operations function is primarily concerned with using resources (inputs) to provide outputs by means of a
transformation process
The efficiency and effectiveness depend on factors like technology, workforce skill of entity for transformation
What is operations management
The management of the transformation process, (the operations process) whereby products are produced or services
provided
Importance of operations management
Focus on needs and develop strategies to maintain / strengthen / increase competitive edge and customer base
Cost Management Efficiency Innovation
Increase revenue Quality Control Strategic Operations Alignment
Reduce number of investments Customer Satisfaction Risk Management
Motivation for new innovation Supply Chain Management Resource Utilisation
Defining terms used in operations management
Operations function Operations managers Operations management
Function is primarily aimed at the Personnel in the business directly Operations manager’s activities,
utilisation of resources to responsible for managing the decisions, and responsibilities that tie
manufacture products or services operations function in with the execution of operations
function
Operations management model
, Performance objectives
Do things right the first time
Quality: Ensuring products or services meet standards and customer expectations
Do things cost effectively
Cost: Managing expenses effectively to optimize profitability
Do things quickly
Speed: Minimizing lead times and response times to enhance efficiency
Make changes quickly
Flexibility: Adapting operations to accommodate changes in demand or market conditions
Do things right every time
Dependability: Consistently delivering products or services on time and as promised
Do things better
Innovation: Introducing new ideas, processes, or products to stay competitive and meet new needs
6 main elements of customer needs
Higher quality
Lower cost
Shorter lead time (quicker manufacturing or provision of services)
Greater adaptability (flexibility)
Lower variability (reliability)
Better service
Operations management guidelines Positive results
Do things right the first time Higher quality
Do things cost effectively Lower cost
Do things quickly Shorter lead time
Make changes quickly Greater adaptability
The transformation model
The operations function is primarily concerned with using resources (inputs) to provide outputs by means of a
transformation process
The efficiency and effectiveness depend on factors like technology, workforce skill of entity for transformation
