Key Decisions of Operations Managers: What Resources/what Amounts
Key Decisions of Operations Managers: What Resources/what Amounts
What
When
Needed/scheduled/ordered
Where
Work to be done
How
Designed
Who
To do the work
Planning
Capacity Location Products and services Make or buy Layout Projects
Controlling
Inventory Control Quality Control
Organizing
Degree of Centralization Subcontracting
Staffing
Directing
Incentive Plans Issuance of work orders Job assignments
5 Ps of Operation Management
Plants
Factories or service branches where production is carried out Adding and locating new plants Expanding, contracting, or refocusing facilities
Parts
Materials or the supplies that go through the system Make or buy decisions Vendor selection decisions
Processes
Equipment and steps by which production is accomplished Technology evaluation Process improvement and reengineering
People
Direct and indirect workforce Quality improvement Setting/revising work standards Learning curve analysis
A. Marketing
Identifying customer requirements Product Life Cycle Distribution Product Price Customer Feedback on Products
B. Finance
The Operation Budget Break Even Point Analysis Working Capital Provision of finance for improvements Provision of info. on general condition of firm
C. Accounting
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D. Industrial Engineering
E. Materials Management
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Determination of Items to be Purchased Delivery Schedules Updating info. On new products, materials and process Inventory planning & Control
F. Personnel
Recruitment, hiring and firing of people Training Labour relations Motivation to workers & Safety factors
For ideas concerning new products, process and new tools for production
Forecasting Location and Layout Techniques Product design and analysis, work study Production control techniques Aggregate Planning Master Production Schedule Materials Requirement Planning Capacity Planning Scheduling and control Maintenance management Feedback and control techniques Quality Control Inventory Control
Operations Strategy
Four Dimensions of competitiveness that measures effectiveness of operation functions..
Strategic implications of operating decisions Matching the productive systems design to market needs Capacity and location Technological choices The work force and job design Suppliers and vertical integration
Additional machinery or sub-contracting Methods to improve productivity Revamping assembly lines Measures to improve motivation Promoting existing employees or hire new ones Identifying & developing new suppliers Look for opportunities to reduce costs