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Unit 3 AOS 3 Operations management

Unit 3 AOS 3 Operations management. KK 3.2 & KK3.3 Characteristics of LSOs in manufacturing and service organisations and elements of the operations system. Key elements of an operations system. Inputs. Transformation process. Outputs. Characteristics of Manufacturing LSOs.

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Unit 3 AOS 3 Operations management

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  1. Unit 3 AOS 3 Operations management KK 3.2 & KK3.3 Characteristics of LSOs in manufacturing and service organisations and elements of the operations system

  2. Key elements of an operations system Inputs Transformation process Outputs

  3. Characteristics of Manufacturing LSOs • Transforms tangible inputs into finished goods • Eg. Yakult • Need to do POLC Inputs Transformation process Outputs

  4. Key elements for a tangible product E.g. Yakult Inputs Transformation process Outputs

  5. Characteristic of Service LSOs • Transforms intangible products into outputs • Eg. Bank • Need to do POLC Inputs Transformation process Outputs

  6. Key elements of a service LSO E.g. Bank Inputs Transformation process Outputs

  7. Productivity and business competitiveness • Regardless of whether the LSO produces goods/services the whole operations system is about making improvements in productivity (increasing productivity) through making inputs work smarter. • Making improvements to productivity causes businesses to be more competitive. • Technology and its application has mechanised operations in a manufacturing LSO

  8. Productivity and business competitiveness • Productivity improvements applied to service LSOs have seen services become more personalised to suit customers. Productivity improvements to service industries have influenced human resource management, how the organisation works, communication and customer service strategies.

  9. Ch 3.3 Operations productivity and business competitiveness Competiveness through: • Cost • Quality • Speed of delivery

  10. How do LSOs improve productivity and business competitiveness? • Combination of human and non-human aspects in the operations system • Facilities design and layout • Materials management • Management of quality • New technology

  11. ESRM applied to Inputs • Typical strategies applied to the input process: • Procurement of inputs from ESRM suppliers • Fair dealing with suppliers • Environmentally sustainable inputs • Reduce energy as an input • Staff friendly facilities and technologies

  12. ESRM applied to transformation process • Use of labour • Occupational Health and Safety procedures/policies • Respect for rights of other parties (copy right laws) • Disposal of waste materials • Customer relations

  13. ESRM applied to outputs • Benefit to society • Product safety and customer health • Product reliability • Sensitivity to community • Product marketing

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