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Chapter 1
Operations management
Key operations questions
Organisation/
Enterprise
Product/
Service Marketing
developme and Sales
nt
Design, location
and management
Marketing Operations of stores and in-
store processes
Promotional and the network
activities, that supplies them
market
research, etc.
Three basic functions at enterprise
Product /
Service
Development Digital Stock
Marketing Operations
Pearson
Education Ltd.
Lord and Ford Motor
Leverett Company
Inter-functional relationships between operations
and other functions
Engineering/ Product/service
technical Understanding of
the capabilities and development
function constraints of the function
operations process
Analysis of new
technology options Understanding of
process technology
needs New product and
Accounting service ideas
and finance Provision Understanding of the
of relevant capabilities and
function data
Operations constraints of the
Financial analysis function operations process
for performance
and decisions Market
requirements Marketing
Understanding of
Understanding Provision of systems for
function
human resource needs
of infrastructural design, planning and
Recruitment and system control, and improvement
development needs
and training
Human Information
resources technology
function (IT) function
Operations management is fashionable!
Financial Marketing/sales
6 2
Organizational
design
Operations and process
11
management
31
Benefits/Actuarial
16
Disaster relief
charity Operations
management uses
ours and our partners
resources to speedily
provide the supplies
and services that
relieve community
suffering
Operations management in all types of organisation (contd)
Maintain
cleanliness and Monitor and enhance
safety of storage Arrange for fast quality of service to
area replenishment of customers
products
http://www.youtube.com/watch?v=2XDxh
RaOVB8
Operations Management
2. Operations Strategy
3. Social, environmental Direct
and economic
performance 12. Quality management
13. Operational
improvement
Operations
management Develop
Design
Operations
Transformed performance
resources
Materials Direct Operations
Informatio strategy
n
Customer Operations
s management Output
Input Design Improvement
resources products and Customers
services
Planning and
Transforming control
resources
Facilities
Staff
Operations input resources and outputs
Transformed
resources
Materials
Informatio
n
Customers
Input Output
resources
Transformation process products and Customers
services
Transforming
resources
Facilities
Staff Outputs are products and services
that add value for customers
Inputs and outputs at Prt a Manger
Transformed
resources
Ingredient
s
Packaging
Customer
s
Input Served and
resources satisfied Customers
customers
Transforming
resources
Equipment
Fittings
Staff
Operations management is changing
The business environment is Prompting operations responses, for
changing, for example: example:
Increased cost-based competition Globalisation of operations networking
Higher quality expectations Information-based technologies
Internet-based integration of operations
Demands for better service activities
More choice and variety Supply chain management
Customer relationship management
Rapidly developing technologies
Flexible working patterns
Frequent new product/service Mass customization
introduction
Fast time-to-market methods
Increased ethical sensitivity Lean process design
Environmental impacts are more Environmentally sensitive design
transparent Supplier partnership and development
Failure analysis
More legal regulation
Business recovery planning
Greater security awareness
Most operations produce products and services
Pure products
Crude oil production
Outputs that are
Acme Whistles exclusively tangible
Aluminium smelting
Management consultancy
Pure services
Mwagusi Safari
Outputs that are
Psychotherapy clinic Lodge
exclusively intangible
Operations can be analysed at three levels
Engines Cockpit
systems Aircraft
Metal Aircraft
provider company supply network
Aircraft
Systems
Electronic
s
Passenger
section
Floor
adjustments
Example of analysis at three levels
The supply network Flow between operations
Programme
and video
maker
Programme
and video
maker
Financial services
An account Financial analyst
management centre at advising a client at an
a large retail bank investment bankPearson Education Ltd. MindStudio
Furniture manufacturing
Hotels
Value-for-money Lobby of an
hotel international
luxury hotel
Photodisc. Life File. Emma Lee Photodisc. Photolink. Jack Star
A typology of operations and processes
The 4 Vs
Low repetition
Each staff member Low Volume High High
performs more of repeatability
each task Specialisation
Less systemisation Capital
High unit costs intensive
Low unit costs
A typology of operations and processes (contd)