supply chain- BA Level 2400 words
Applewatts
Ch1_Managing_Operations_L6-2.ppt
Managing Operations
Alex Hill and Terry Hill
Learning objectives
- Explain ROLE of operations management in an organisation
- Appreciate the dimensions that make up the operations management TASK
- Identify where the operations management FUNCTION fits within an organisation
- Illustrate the crucial role of operations management in organiational SUCCESS
Lecture outline
- INTRODUCTION
- What operations management DO?
- Variations in the operations management ROLE
- SERVICES vs MANUFACTURING
- Critical REFLECTIONS
- SUMMARY
What does Operations Management do?
Manages PEOPLE, MATERIALS, RESOURCES and DELIVERY SYSTEMS
To deliver SERVICES and PRODUCTS
that have been sold to CUSTOMERS
| > | KEY IDEA |
| Operations delivers the SERVICES and PRODUCTS that have been sold to CUSTOMERS |
| > | KEY IDEA |
| Operations delivers services and products to customers by MANAGING the PEOPLE, MATERIALS, RESOURCES and DELIVERY SYSTEMS involved |
What does Operations Management do?
How operations management fits into an organisation
ORGANISATIONS NEED TO
SELL services or products to customers
DESIGN services or products
PURCHASE materials and/or services
DELIVER the services or products to meet customer needs
ACCOUNT for the cash or credit transactions involved in the above
What does Operations Management do?
How operations management fits into an organisation
OPERATIONS IS RESPONSIBLE FOR
SELLING services or products to customers
DESIGNING services or products
PURCHASING materials and/or services
DELIVERING the services or products to meet customer needs
ACCOUNTING for the cash or credit transactions involved in the above
What does Operations Management do?
How operations management fits into an organisation
What does Operations Management do?
To deliver SERVICES and PRODUCTS
that have been sold to CUSTOMERS
Manages PEOPLE, MATERIALS, RESOURCES and DELIVERY SYSTEMS
The role of operations management
What does Operations Management do?
The role of operations management
DAY-TO-DAY role
STRATEGIC role
CONTENT
INTERNAL role
EXTERNAL role
STYLE
| > | KEY IDEA |
| DAY-TO-DAY role of operations include: Managing within BUDGETS SCHEDULING SERVING customers Meeting OUTPUT targets Communicating with other FUNCTIONS |
| > | KEY IDEA |
| STRATEGIC role of operations include: Supporting market ORDER-WINNERS and QUALIFIERS Making company COMPETITIVE |
What does Operations Management do?
The role of operations management
What does Operations Management do?
MANAGE
The role of operations management
Large COST centre
PEOPLE
TECHNOLOGY
SHORT and LONG term
Links THINKING and DOING ends of the business
| > | KEY IDEA |
| Managers need to THINK and WORK in: SHORT-TERM LONG-TERM |
What does Operations Management do?
The role of operations management
| > | KEY IDEA |
| Operations: CONTRIBUTES to gaining FIRST sale PROCURES SECOND sale |
What does Operations Management do?
Inputs and outputs
What does Operations Management do?
Inputs and outputs
Variations in the operations management role
Variations in complexity
DEPENDING ON
SIZE of organisation
Service or product VOLUMES
RANGE of services or products sold
TECHNOLOGY required to deliver them
Number of operations IN-HOUSE
What is being PROCESSED
| > | KEY IDEA |
| Operations may PROCESS: CUSTOMERS CUSTOMER SURROGATES INFORMATION and/or PRODUCTS |
Variations in the operations management role
Variations in complexity
Variations in the operations management role
Variations in output - services versus products
| > | KEY IDEA |
| The operations OUTPUT can be: SERVICES (intangible) and/or PRODUCTS (tangible) |
Variations in the operations management role
Variations in output - services versus products
Variations in the operations management role
Variations in output - services versus products
DEPENDING ON
Nature of the OFFERING
Level of CUSTOMER involvement
Operations CAPACITY
ORGANISATIONAL arrangements
QUALITY control
COMPETITIVE environment
| > | KEY IDEA |
| SERVICES are CONSUMED as they’re provided whereas most PRODUCTS can be made in advance and STORED |
- Operations manager’s ROLE is both:
- Demanding, challenging, absorbing and satisfying; and
- Frustrating and complex
- DAY-TO-DAY task requires physical effort
- Difficult to BALANCE day-to-day and strategic role
- Good management of operations is key to an organisation’s SUCCESS
Critical reflections
Critical reflections
Summary
- Different SECTORS
- Services vs Manufacturing
- TASK of operations manager is the same
- Different focus
- Operations TRANSFORMS
- Inputs into outputs that are sold to customers
- Critical to overall SUCCESS of an organisation
- Manages 60-70% of people, assets and costs
Pull out points above through discussion…
Make MONEY
Produce GOOD FOOD
