1 / 13

Area of Study 3: The Operations Management Function

Area of Study 3: The Operations Management Function. Chapter 6: Operations Management function. Operations Management. Task of managing the process that transforms resources into finished goods and services Managing resources to achieve efficient output of goods and services.

hayden
Télécharger la présentation

Area of Study 3: The Operations Management Function

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Area of Study 3: The Operations Management Function Chapter 6: Operations Management function

  2. Operations Management • Task of managing the process that transforms resources into finished goods and services • Managing resources to achieve efficient output of goods and services

  3. Operations and business objectives

  4. Role of Operations Manager • Ensuring that the operations systems meet objectives of the organisation as a whole • Making strategic decisions relating to planning and designing an operating system • Inventory management • Manufacturing • Quality • Maintenance/engineering

  5. Operations system • Series of procedures and processes an organisation take in order to create its outputs of finished goods and services through the transformation of inputs.

  6. Key Elements of Operations System - INPUTS • Inputs – resources necessary to produce the product • Raw materials and components • Human Resources • Technology • Capital, plant and equipment • Information and knowledge • Times

  7. Key Elements of Operations System - PROCESSING • Transformation of inputs into outputs • Plans the process then organises its implementation • Process will vary according to: • types of goods and services produced • Size of the organisation • Number, quality and availability of resources

  8. Key Elements of Operations System - OUTPUTS • Final product, the results of the operations process • Outputs are goods or services • Good involves an object changing hands, service involves purchase of labour • Management should ensure output type is responsive to needs of the market

  9. How operations management relates to business objectives and strategy • An organisation in its desire to increase its level of business competitiveness will require the operations management functional area to establish objectives such as: • Increasing productivity • Improving quality of processes and output • Adopting a sustainable approach to its operations • These features can help enhance the competitiveness of the business: • Optimal levels of operational efficiency • High standards of quality • Ethical and socially responsible considerations • Being able to measure level of achievement with objectives

  10. The productivity objective • Productivity: level of output obtained from a level of input Output (O) (units of production) • Productivity (P) = Inputs (I) (units of raw materials, capital, labour) • Examples of productivity measures: • Units of production produced per employee • Crop tonnage per hectare planted • Number of client attended to per hour or per unit of wage cost • Number of units produced per unit of money • Productivity and quality improvements are key to achieving international competitiveness • Business will attempt to gain competitive advantage based on one or both of these things

  11. Factors determining organisational productivity • Technology levels • Research and development • Equipment and facilities • Tasks and processes • Layout of facilities • Communications processes • Workplace safety

  12. Evaluation of operations management • Key Performance Indicators appropriate to determining if operations management system is working well: • Efficiency • Level of waste • Productivity • Customer satisfaction (measured by repeat orders or number of returned products. • Profit

  13. Activities • Activity 6.3 Case Study p142-143 • Chapter Summary Questions • Examination Preparation Chapter 6 p146

More Related