9th/10th edition by Slack
and Brandon-Jones
Disclaimer:
These notes reflect the materials and concepts that helped me successfully pass my exam.
They are designed to aid in understanding the content quickly and efficiently. However, please
note that these notes may not include all diagrams or detailed mathematical explanations, as
my learning was supplemented by in-class instruction. It is recommended to use these notes
alongside additional resources especially math related ones.
,Chapter 1 Operations management
1.1. What is Operations Management?
● Definition: Operations management involves managing resources that are
dedicated to the creation and delivery of products and services. It is crucial in
every business, though it might not always be labeled as "operations
management."
● Scope: It focuses on managing processes, which includes managing internal
customers and suppliers. Since all management functions consist of processes,
operations management is relevant to all managers.
1.2. Why is Operations Management Important in All Types of Organizations?
● Core Activity: Operations management is essential because it utilizes an
organization's resources to produce outputs that meet market demands. This is
the central function of any enterprise.
● Adaptability: The significance of operations management is growing due to the
evolving business environment. It requires innovative thinking from operations
managers, particularly regarding new technologies, supply networks, and
environmental sustainability.
1.3. What is the Input–Transformation–Output Process?
● Process Model: Every operation can be described as an
input–transformation–output process. Operations have inputs categorized into
'transforming resources' (facilities and staff) and 'transformed resources'
(materials, information, customers).
● Service and Product Mix: Most operations deliver a blend of services and
products rather than focusing solely on one.
●
,1.4. What is the Process Hierarchy?
● Supply Network: All operations are part of a broader supply network, where
each operation contributes to satisfying end-customer needs.
● Internal Relationships: Operations consist of various processes that create a
network of internal customer-supplier relationships.
● End-to-End Processes: Business processes that satisfy customer needs often
cut across traditional functional boundaries within an organization.
illustrated for a business that makes television programmes and videos. It has inputs of
production, technical and administrative staff, cameras, lighting, sound and recording
equipment, and so on.
, 1.5. How Do Operations and Processes Differ?
● Differentiating Factors: Operations and processes can differ based on the
volume of outputs, the variety of outputs, the variation in demand, and the degree
of visibility to customers.
● Cost Association: Operations characterized by high volume, low variety, low
demand variation, and low customer visibility are generally associated with lower
costs.
1.6. What Do Operations Managers Do?
● Responsibilities: Operations managers' responsibilities are divided into four
categories:
○ Direct: Understanding performance objectives and setting an operations
strategy.
○ Design: Involves designing the operation itself, including its processes,
services, and products.
○ Deliver: Planning and controlling the activities of the operation.