Operations Management

1. Operations Management

2. Operations Management • Operations management is about producing goods and/or services based on business objectives Productivity Competitiveness Business objectives Operations System Business strategies Inputs Processes Outputs

3. Role of the Operations Manager

4. Management Functions • Planning – objectives and courses of action or strategies • Organising – resources to produce goods and/or services • Leading – motivating and coaching people through change • Controlling – organisational processes and systems

5. Operations Management • It is concerned with creating, operating and controlling a transformational process that takes inputs from a variety of resources and produces outputs of goods and services, to satisfy customer demand. • Tangible and intangible

6. Key elements of an operations system

7. Facilities location Consideration must be given to proximity to: Customers Raw materials Labour force Competitors infrastructure Facilities design & layout Factors to consider Job flow Materials flow Equipment movement Capacity output requirements Operations layouts Process layout Product layout Fixed position layout Operations Management

8. Productivity and business competitiveness • Competing on cost • Competing on quality • Competing on speed of delivery

9. Facilities design and layout • Manufacturing layouts • Fixed position layout • Product layout • Other layouts • Process layout • Retail layout • Office layout

10. Materials management • The strategy that manages the use, storage and delivery of materials to ensure the right amount of inputs is available when required in the operations system.

11. Materials planning • Production plan • Master production scheduling (MPS) • Materials requirements planning (MRS) • Inventory Control • Just in time • Supply change management

12. The management of quality • Quality control • Quality assurance • Total quality management (TQM) • Employee empowerment • Continuous improvement • Customer focus

13. Use of technology • Office technology • Customer relationship management • Manufacturing technology • Robotics • Computer Aided Design (CAD) • Computer Aided Manufacture (CAM) • Computer Integrated Manufacturing (CIM)

14. Ethical and socially responsible management • Managing inputs appropriately • Managing suppliers appropriately • Managing staff appropriately • Managing the customer relationship appropriately

15. Key Knowledge – Study Design • The operations function and its relationship to business objectives and business strategy; • Characteristics of operations management within large-scale manufacturing and service organisations; • Key elements of an operations system (inputs, processes and outputs) in different types of large-scale organisations;

16. Key Knowledge – Study Design • Productivity and business competitiveness, their importance for an impact on the operations system; • Strategies adopted to optimise operations; including; • Facilities design and layout • Material management • Manage of quality • Extent of the use of technology • Ethical and socially responsible management of an operations system.

17. Exam Questions • Question 4 - 2010 • The Charity Foundation is a service organisation assisting children who have been affected by natural disasters. It aims to raise money and collect goods to distribute to children in need. Identifyand explain the key elements of The Charity Foundation’s operations management system. In your answer provide one example of each key element. (6 marks)

18. Exam Questions • Question 5 – 2010Ethical and socially responsible management is an important part of an operations management system. Identify and describetwo operations management strategies. Discuss the benefits to an organisation of adopting an ethical and socially responsible approach to management in these areas. (6 marks)