Presentation for applied operations management
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Lecture2-WhatisOperationsManagement1.pptxApplied Operations Management
5LO507
Lecture 2 – What is Operations Management
| Teaching Team: | |
| Dr Simon Peter Nadeem (Module Leader) | |
| Dr Jay Daniel | |
| Mike Edwards |
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Core Text
The core text for this module is:
Slack, N., Brandon-Jones, A. and Johnston, R. (2013) Operations Management, 7th Ed, Harlow, Financial Times, Pitman Publishing.
This is available as a e-book through the Library Resources
Its newer version is:
Slack, N. and Brandon-Jones, A. (2019) Operations Management, 9th Ed, Pearson Education Ltd., Harlow, UK.
This is available as a e-book through the Library Resources
Most of the slides that are used are based on this textbook. See Module Handbook for other resources
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Discussion Starter
What is Operations and
Operations Management?
Some General Principles
Source: © Image Source/Corbis
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What is an Operation?
A transformational process
What is a Process?
'… a series of actions or steps taken in order to achieve a particular end.'
(The New OXFORD Dictionary of ENGLISH (1998) Oxford, Oxford University Press, p. 1477)
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Kamuzu Int. Airport
Airplane Landing
Bus Collection
Bus Transportation from Airplane to Immigration area
Collecting Immigration Form
Filling Immigration Form
Queuing
Visa Approval
Visa Payment
Visa Stamp
Immigration Clearance Interview
Passenger Cleared from Immigration and Ready to Collect Luggage
Operation and Process for Immigration Clearance
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What is operations management?
Operations management is the activity of managing the processes, systems and resources which are devoted to the production and delivery of products and services
What resources exactly?
Raw Material
Inventory
Equipment
Cash/Budget
Staff
Etc.
IT Systems
(Slack et al 2013)
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Operations and other Functions
What we do:
Operational
Activities
Purchasing
Accounting
and finance
Marketing
Product
Development
Engineering
Personnel
Transport
IT
All these departments
are about ‘operations’
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What the Operations Manager does
Business Planning - what is our strategy and how does Ops contribute to the strategy
Product Design - what products and services should we make
Resource Planning – money, people, materials, equipment, time – always a trade-off
Location and Layout - where and how do we operate/locate
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What the Operations Manager does
Job Design – people and technology working together
Quality – what are our standards and can we meet them
Logistics – how do we source and get the things we need and how do we deliver to the customer
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Operations Managers are mainly involved in
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Planning
Improvement
Control
Design
Customers
Input resources
Output products and services
Transformed resources
Materials
Information
Customers
Transforming resources
Facilities
Staff
Design
Planning and control
Operation’s performance
Operations strategy
Improvement
Operations management
Operations strategy
Slack’s (2013) Model of Operations
Forms the basis for the whole module
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Back office operation in a bank
Kitchen unit manufacturing operation
Take-out / restaurant operation
These are all operations
A Learning Operation?
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The best way to start understanding the nature of ‘Operations’ is to look around you.
Everything you can see around, has been produced by an operation.
Every service you consumed today (radio station, bus service, lecture, etc.) has also been produced by an operation.
Operations Managers create everything you buy, sit on, wear, eat, throw at people and throw away.
Operations are everywhere
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Operations link to all the other functions in an organisation
Engineering/ technical function
Accounting and finance function
Human resources function
Information technology (IT) function
Understanding of the capabilities and constraints of the operations process
New product and service ideas
Understanding of the capabilities and constraints of the operations process
Market requirements
Financial analysis for performance and decisions
Provision of relevant data
Recruitment development and training
Understanding of human resource needs
Analysis of new technology options
Understanding of process technology needs
Provision of systems for design, planning and control, and improvement
Understanding of infrastructural and system needs
Marketing function
Product/service development function
Operations function
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Macro and Micro Operations
Operations
Marketing and sales
Lots of I-T-O operations linked together
Defining internal and external customer requirements
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Automobile assembly factory – Operations management uses machines to efficiently assemble products that satisfy current customer demands
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Physician (General practitioner) – Operations management uses knowledge to effectively diagnose conditions in order to treat real and perceived patient concerns
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Management consultant – Operations management uses people to effectively create the services that will address current and potential client needs
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Disaster relief charity – Operations management uses ours and our partners’ resources to speedily provide the supplies and services that relieve community suffering
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Advertising agency – Operations management uses our staff’s knowledge and experience to creatively present ideas that delight clients and address their real needs
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Variety In Operations
Pure Goods
Tangible
Storable
Produced in advance
Transportable
Quality evident
Mix of Both
Intangible
Produced on demand
High customer contact
Not transportable
Quality difficult to assess
Pure Services
Crude Oil
Oil Refining
Machine Tools
Restaurant
Software house
Consultancy
Psychiatry
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Financial services
An account management centre at a large retail bank
Financial analyst advising a client at an investment bank
Furniture manufacturing
Mass production of kitchen units
Craft production of reproducing ‘antique’ furniture
Hotels
Value-for-money hotel
Lobby of an international luxury hotel
Significant Variety within sectors
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Variation in demand
High
Low
Visibility
High
Low
Variety
High
Low
High
Volume
Low
High
Analysing Differences-The 4 Vs
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Volume
It’s important to understand how different operations are positioned on the 4 Vs.
Is their position where they want to be? Can they re-position?
Do they understand the strategic implications of this choice?
Variety
Variation
Visibility
Low
High
High
High
High
Low
Low
Low
Mwagusi Safari Lodge
Formule 1 Hotel
A 4 Vs profile of two operations
(Read the Case Study – Ch 1)
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Case Study on page 24-25 of the book (9th edition).
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Thank you for your attention
Questions?
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