Operations Managementtheprocessthatusesresourcesofanorganisationtoprovidetherightgoodsorservicesforthecustomer
Operational objectives
1 Costs
2 Quality
3 SpeedofResponse
4 Flexibility
5Dependability
6 EnvironmentalObjectives
7 AddedValue
Labourproductivityitsameasureoftheoutputperworkerinagiventimeperiod
UnitCosts howmuchoneunitcostsas aproportionoftotalcosts
CapacityUtilisationthe maximumamounttheorganisationcanproducewithina specific
timeperiod
AddedValueModifyinggoods
orservicestomakethemworthmore
Name Definition Advantages Disadvantages
staffcouldbeabsent
LABOUR productionreliesonusing moreflexible lowerproductivity
intensive labourresources no machinerycosts needtopaywages
improves employmentrate lowerspeed
mightmakemistakes
CAPITAL productionreliesonwing 24 7 production initialcost
high
intensive capital resources noneedtopaywages lessflexible
reallylowlabourcost mightbe
specialists torepair
required
highquality highconsistency mighthavelongpayback machiner
UNDER Sparecapacity canbeusedifanemergencyhappens lowercapacityutilisation
Magnon Iaddsflexibility lessprofits
CAPACITY matchwithanincreaseddemand thatimpacton
higherfixedcosts
unit cost
Efficiency outputis maximised from a givenlevel
ofinputs
Economies
ofsale theadvantagesthatanorganisationgainseluetoanincreasein size
Internal Purchasing Technical Financial RiskBearing Managerial
External bettertransportnetworkdevelopmentoffacilitiesinlocaluniversities relocationofsuppliers
, Diseconomies
ofSale when acompanyorbusinessgrowssolorgethatthecostsperunitincrease
III
Control miseries
losecontrolofemployeeswork
Leanproduction anapproachtomanagementthatfocusesoncuttingoutwastewhilstensuring quality
eg doingthingsbetterinvolvingemployeesinthecontinuousprocessofimprovement ReducingCosts
Name Definition Advantages Disadvantages
couldbeexpensive
JIT Aimstoensurethatunitsinto littlewastenostockfast difficult setup
justintimetheproductionprocessarriveonly automatedprocess noneed a
of notflexiblelittleroomforerror
whentheyare needed
bigstoragespacehelpswithcashflow Isuppliesmightbedelayed
Leaproduction of productivity
levels labor
high reliesonefficienthighquality
less
stock suppliers
createsmarketingadvantages requiresmotivatedstaff
Wider
of timeneeded
range productsless I nobackup
Technology to
Improve RoboticsAutomation planning
train
CADCAM reduceswaste
Ingi
workforce
t.ingy.m
Operational
am improvesquality
Kaizer leanproductionsystemthat improvedteamwork difficulttoimplementinexisting
concentrates smallbut frequent improved efficiency systems
on
improvementsineveryaspect the
of improvedemployeesatisfaction changeisdifficult
productionprocess lesswaste trainingisrequired
Quality thedegreeofexcellenceofsomething
CUSTOMER customrwgdp
customersatisfaction
HIGHER crop
SATISFACTION
I level ofreturns
REPEAT scraprate thepercentageof unsuccessfulproduct
LOYALTY PURCHASE aesthetics
L
performance
LOWER
MARKETING CUSTOMER
COSTS RECOMMENDATION
Operational objectives
1 Costs
2 Quality
3 SpeedofResponse
4 Flexibility
5Dependability
6 EnvironmentalObjectives
7 AddedValue
Labourproductivityitsameasureoftheoutputperworkerinagiventimeperiod
UnitCosts howmuchoneunitcostsas aproportionoftotalcosts
CapacityUtilisationthe maximumamounttheorganisationcanproducewithina specific
timeperiod
AddedValueModifyinggoods
orservicestomakethemworthmore
Name Definition Advantages Disadvantages
staffcouldbeabsent
LABOUR productionreliesonusing moreflexible lowerproductivity
intensive labourresources no machinerycosts needtopaywages
improves employmentrate lowerspeed
mightmakemistakes
CAPITAL productionreliesonwing 24 7 production initialcost
high
intensive capital resources noneedtopaywages lessflexible
reallylowlabourcost mightbe
specialists torepair
required
highquality highconsistency mighthavelongpayback machiner
UNDER Sparecapacity canbeusedifanemergencyhappens lowercapacityutilisation
Magnon Iaddsflexibility lessprofits
CAPACITY matchwithanincreaseddemand thatimpacton
higherfixedcosts
unit cost
Efficiency outputis maximised from a givenlevel
ofinputs
Economies
ofsale theadvantagesthatanorganisationgainseluetoanincreasein size
Internal Purchasing Technical Financial RiskBearing Managerial
External bettertransportnetworkdevelopmentoffacilitiesinlocaluniversities relocationofsuppliers
, Diseconomies
ofSale when acompanyorbusinessgrowssolorgethatthecostsperunitincrease
III
Control miseries
losecontrolofemployeeswork
Leanproduction anapproachtomanagementthatfocusesoncuttingoutwastewhilstensuring quality
eg doingthingsbetterinvolvingemployeesinthecontinuousprocessofimprovement ReducingCosts
Name Definition Advantages Disadvantages
couldbeexpensive
JIT Aimstoensurethatunitsinto littlewastenostockfast difficult setup
justintimetheproductionprocessarriveonly automatedprocess noneed a
of notflexiblelittleroomforerror
whentheyare needed
bigstoragespacehelpswithcashflow Isuppliesmightbedelayed
Leaproduction of productivity
levels labor
high reliesonefficienthighquality
less
stock suppliers
createsmarketingadvantages requiresmotivatedstaff
Wider
of timeneeded
range productsless I nobackup
Technology to
Improve RoboticsAutomation planning
train
CADCAM reduceswaste
Ingi
workforce
t.ingy.m
Operational
am improvesquality
Kaizer leanproductionsystemthat improvedteamwork difficulttoimplementinexisting
concentrates smallbut frequent improved efficiency systems
on
improvementsineveryaspect the
of improvedemployeesatisfaction changeisdifficult
productionprocess lesswaste trainingisrequired
Quality thedegreeofexcellenceofsomething
CUSTOMER customrwgdp
customersatisfaction
HIGHER crop
SATISFACTION
I level ofreturns
REPEAT scraprate thepercentageof unsuccessfulproduct
LOYALTY PURCHASE aesthetics
L
performance
LOWER
MARKETING CUSTOMER
COSTS RECOMMENDATION
