5 1 The role of operations management
1 Relation with other functions
Operations Management concerned with providing Theright goods and Services in
Theright quantities and qualitylevel in acosteffective and
timely manner
Marketing mustbe high quality andmustfulfill pricing and packaging needs
HRM changes in production methods can reduce or increase workforcesizeLabour an
capital intensive
Finance Capital intensive andlean product needheavyinvestmentCompany's
finance's are considered Costs are reduced
Factors
of productionlandlabourcapital enterprise
2 Operations Management in organizations producing goods and or services
Theroleof production isturning factors of production intoTheoutput ofgoods
andservices costeffective
PrimarySector extractingharvesting
SecondarySectorturningnatural resources into processed or finished goods
Tertiary Sector Provision ofservices EgFinance
QuaternarySector
Provision
of intellectual activities togenerate andshareinformation
EgICTRandD
There isvalueadded during eachstage
keyaspects
Methodsof operations Management
ofand
Sizescope
production
limning
Quality control
ofproduction
Research and Development and Innovation
3 Operations Management strategies andeconomic sustainability
Creating a balance between ecologicalsocial and economic needs
andfuture generations of peopletoday
Sustainability The promotion
ofintergenerational equity
EcologicalSustainability Wemust consider capacity today's environment in meeting
of
or needs andwants without jeopardizing future generation's
abilities todo so
EgOverfishing
Green technologies
Social Sustainability Optimizing quality
oflife forpeopleandnext generationsEgJob
creado
Economicsustainability Developmentthatmeets Theeconomic needs
ofthepresentgenerationwithout
comprising the needs offuturegenerations EgFossilfuel asenergyresarce
, g of y
5.2 Production Methods
1 Production methods
11JobProduction Customizing an individual productfromStarttofinish It is tailendto
meet specific requirements Egweddingplannerhaircut
Smallscale involvinglittle technology orspecialized technology
1Highqualityduetopersonalattention Timeconsuming
Highly motivatedspecializedworkers Labourintensive
wagecosts
t Flexibility in The planning andproductionprocess Scale
MinimalEconomics
of
Highuniqueness addsvalue Irregular productioncon
Provides Choice
forCustomerthatis absentin othermethods lead tocash
flowproblem
1 2 BatchProduction Referstosimultaneously producing a limited number ofidentical products
batch atonetimeFirstonebatch is produced andThen nextusing
samestaff andmachinery
Economies
of Scaletechnicaleconomies Storagecostsandrisk ofdamage
Specializationincreasesproductivityand Division of labour causes boredom
quality product Inflexible can'tstoponcestarted
Varietyofproducts canbemade High initial investment coststo purchase
FewerrisksThanproducing a singleproduct machinery Maintenance costs
13 FlowProduction or massproduction ILine Production
It refersto Theprocess of manofacturing largeamounts of a standarized product
cantinasly
Usually capital intensive process
laborand machinery isHigh
Specialization
Highlevel
of
of productivity
Besuretodifferentiate
Flow Sequence process tocreate a product
Line Product is assembled in stages along an assembly linelegcar
Mass Manofacturing largeamount
of standarized products legChips
CapitalintensivelargescaleLeadsto economies Monotonous and
of boringforworkers
ScaleandlowerATC lowstaffmorale
Capitalintensive production needs nostopping or Inflexiblestopping production iscostly
breaknormotivationandincentives Breakdowns cause
majordelays
Standarized quality andbusinessachieves a low Hugesetupcostsrunningcosts like
defectrate maintenanceandreplacementcosts
Low costs
labour since unskilled labor is required
1 Relation with other functions
Operations Management concerned with providing Theright goods and Services in
Theright quantities and qualitylevel in acosteffective and
timely manner
Marketing mustbe high quality andmustfulfill pricing and packaging needs
HRM changes in production methods can reduce or increase workforcesizeLabour an
capital intensive
Finance Capital intensive andlean product needheavyinvestmentCompany's
finance's are considered Costs are reduced
Factors
of productionlandlabourcapital enterprise
2 Operations Management in organizations producing goods and or services
Theroleof production isturning factors of production intoTheoutput ofgoods
andservices costeffective
PrimarySector extractingharvesting
SecondarySectorturningnatural resources into processed or finished goods
Tertiary Sector Provision ofservices EgFinance
QuaternarySector
Provision
of intellectual activities togenerate andshareinformation
EgICTRandD
There isvalueadded during eachstage
keyaspects
Methodsof operations Management
ofand
Sizescope
production
limning
Quality control
ofproduction
Research and Development and Innovation
3 Operations Management strategies andeconomic sustainability
Creating a balance between ecologicalsocial and economic needs
andfuture generations of peopletoday
Sustainability The promotion
ofintergenerational equity
EcologicalSustainability Wemust consider capacity today's environment in meeting
of
or needs andwants without jeopardizing future generation's
abilities todo so
EgOverfishing
Green technologies
Social Sustainability Optimizing quality
oflife forpeopleandnext generationsEgJob
creado
Economicsustainability Developmentthatmeets Theeconomic needs
ofthepresentgenerationwithout
comprising the needs offuturegenerations EgFossilfuel asenergyresarce
, g of y
5.2 Production Methods
1 Production methods
11JobProduction Customizing an individual productfromStarttofinish It is tailendto
meet specific requirements Egweddingplannerhaircut
Smallscale involvinglittle technology orspecialized technology
1Highqualityduetopersonalattention Timeconsuming
Highly motivatedspecializedworkers Labourintensive
wagecosts
t Flexibility in The planning andproductionprocess Scale
MinimalEconomics
of
Highuniqueness addsvalue Irregular productioncon
Provides Choice
forCustomerthatis absentin othermethods lead tocash
flowproblem
1 2 BatchProduction Referstosimultaneously producing a limited number ofidentical products
batch atonetimeFirstonebatch is produced andThen nextusing
samestaff andmachinery
Economies
of Scaletechnicaleconomies Storagecostsandrisk ofdamage
Specializationincreasesproductivityand Division of labour causes boredom
quality product Inflexible can'tstoponcestarted
Varietyofproducts canbemade High initial investment coststo purchase
FewerrisksThanproducing a singleproduct machinery Maintenance costs
13 FlowProduction or massproduction ILine Production
It refersto Theprocess of manofacturing largeamounts of a standarized product
cantinasly
Usually capital intensive process
laborand machinery isHigh
Specialization
Highlevel
of
of productivity
Besuretodifferentiate
Flow Sequence process tocreate a product
Line Product is assembled in stages along an assembly linelegcar
Mass Manofacturing largeamount
of standarized products legChips
CapitalintensivelargescaleLeadsto economies Monotonous and
of boringforworkers
ScaleandlowerATC lowstaffmorale
Capitalintensive production needs nostopping or Inflexiblestopping production iscostly
breaknormotivationandincentives Breakdowns cause
majordelays
Standarized quality andbusinessachieves a low Hugesetupcostsrunningcosts like
defectrate maintenanceandreplacementcosts
Low costs
labour since unskilled labor is required
