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Learning Unit 1 - CH1 - Introduction To Operations Management

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12 views35 pages

Learning Unit 1 - CH1 - Introduction To Operations Management

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kwandodlam123
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Introduction to Operations

Management: What is Operations


Management?

Unit 1
Learning Unit 1: Theme
Breakdown
 Theme 1: What Is Operations Management? _Chap 1
Learning objectives- Theme 1: What Is
Operations Management?
 Define operations management;
 Explain the importance and development of operations management and its
role in industry and society at large;
 Discuss the scope of operations management;
 Explain the different management levels in operations management;
 Compare the decisions made on the strategic, operational and tactical levels of
operations management;
Learning objectives (cont.) - Theme 1: What
Is Operations Management?
 Discuss the conversion process of inputs to outputs;
 Describe the characteristics of operations management;
 Identify the associates and functional groups that work together in operations
management;
 Analyse the differences between goods and services;
 Discuss processes and process operations as major influences on operations
management.
Introduction: What does operations
management(OM) involve?

 What is operations?
 The part of a business organization that is responsible for
producing goods or services
 How can we define operations management (OM)?
 The management of systems or processes that create goods
and/or provide services.
 OM can be defined as the management of processes exploited to
conceive, deliver, create and distribute goods and service to
customers that are value added.
Introduction: What
does operations
management(OM)
involve?
Where does operations management take place?

For further
explanations, see page 8
on examples of what
operations managers
might do

Source:
Swink,
Melnyk,
Cooper and
Hartley
(2014)
1.2 Importance
of operations
management
1.3 Development of operations management

Industrial revolution

Prominence of Manufacturing
sector

Production Management(PM) (21st


century)

Operation Management (due to


more responsibilities of PM & SC)
1.3
Development of
operations
management
1.3 Development of operations management
1.4 Scope of operations management

Ref: table
1.1
1.5Scope
Levels
ofin operations
operations management
management

The following addresses issues with reference to its


existence: eg as a function and a system
1. Functions
 The 3 major functional areas of an organisation are operations,
finance and marketing. (Manufacturing and service sector)
2. System
 The organisation as a whole can be seen as a system.
(Subsystems may include operations, finance and marketing)
 NB any decision made on each affect each other.
1.5 Levels in operations management

Strategy

Tactical
Operational
Strategy and strategic
Scope of operations decisions
management

(see page 8, Fig 1.1)


customer requirements

need satisfaction customer


Operational
Scope ofand tactical planning
operations decisions
management
1.6 Characteristics of operations
Scope of operations management
management
1.7 The relationship
Scope of between different
operations functions within an
management
organisation
Figure 1.2.
1.7 The relationship
Scope of between different
operations functions within an
management
organisation (cont.)

Ref to table 1.2 & 1.3


for the application
1.7 The relationship
Scope of between different
operations functions within an
management
organisation (cont.)
The transformation process is the process whereby value
is added to the inputs to ensure that the outputs will have a
higher value.
1.7 The relationship
Scope of between different
operations functions within an
management
organisation (cont.)
1.7 The relationship
Scope of between different
operations functions within an
management
organisation (cont.)
1.8 Other departments or functions
Scope of operations within an organisation:
management
Servitization
1.8 Other departments or functions
Scope of operations within an organisation
management
(cont.)
1.8 Other departments or functions
Scope of operations within an organisation
management
(cont.)
1.9 Differences
Scopebetween services
of operations and goods production
management
1.9 Differences
Scopebetween services
of operations and goods production
management
Service Goods
Intangible Tangible
Provided by service organisations Produced by manufacturers
Impossible to store Easy to store
Cannot the transported Can be transported
Consumption and production at the same Delay between production and consumption
time
Very labour intensive Mostly automated
Difficulty to measure quality Easier to measure quality
Likely to be unique Less likely to be unique
Interaction between customer and provider Little or no contact between
is high
1.9 Differences
Scopebetween services
of operations and goods production
management

Characteristics of service:
• Service are intangible
• The client forms part of the service
• Service cannot be stored
• Service provision is usually labour intensive
• Services are usually provided in small service
centres.
• The quality of services is difficult to measure
• Registration to patent rights is difficult
1.10 TheScope
threeof
modes of operations
operations management
management
1.11Scope
Operations management
of operations structures
management
1.11Scope
Operations management
of operations structures
management
Structures/Systems Description
Decentralised The local manager (end user) is in
charge of the system (ERP) to
decide the needs required and
initiates the action.
Centralised The systems and decision-
making are initiated at the same
central point (HQ) and
disseminated to remote points in
the Chain or Organisations
1.11Scope
Operations management
of operations structures
management
Summary
Scope of operations management
Assessment Criterial
 Define operations management;
 Explain the importance and development of operations
management and its role in industry and society at large;
 Discuss the scope of operations management;
 Explain the different management levels in operations
management;
 Compare the decisions made on the strategic, operational and
tactical levels of operations management;
Assessment Criterial (cont)
 Discuss the conversion process of inputs to outputs;
 Describe the characteristics of operations management;
 Identify the associates and functional groups that work together
in operations management;
 Analyse the differences between goods and services;
 Discuss processes and process operations as major influences
on operations management.

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