How to PRODUCE goods and services. The activity of managing the resources which produce and deliver products and services.
The operations function makes the products and the services. It should exchange information with all other departments.
Input-Transformation-Output. Inputs are resources which are transformed into the products and services.
Operations consists of a collection of processes interconnecting with each other to form a network. Each process acts as a smaller version of the whole operation its part of.
In any operation, the mechanism that actually transforms inputs into outputs are these processes.
Although all operations processes are similar in that they all transform inputs, they do differ in a number of ways.
• Volume of output: High volume of O/P (McDonalds) means people are doing repeated tasks ...view middle of the document...
High variation in demand pattern (summer resorts) which has no customers in winter.
The activities of Operation Managers:
1. Understand what it is trying to achieve. How to judge the performance of the operations at different levels. CH2
2. Decision making should be towards organization’s long term goals. CH3
3. Designing the operation’s products, services and processes. It determines the physical form, shape and composition of products, services and processes. CH 4-9
4. Planning and controlling the operation. Deciding what the operations resource should be doing and making sure that they are really doing it. CH 10-17
5. Improving the performance of the organization Ch 18-20
Tasks, Issues and Decisions of Operation Managers—— MBA.
IKEA’s innovation in operations was “the idea of selling furniture as self assembly flat packs”. This reduced production and transport costs. Stores layout is excellent. IKEA’s supply network is vitally important. IKEA brought changes for customers who became frustrated with overcrowding and long waiting times.
IKEA’s operations management is about Designing, Producing and Delivering products and services.
1. Arranging store’s layout that gives smooth and effective flow to customers. (Process Design)
2. Design stylish products that can be flat packed effectively. (Product Design)
3. All staff is contributing to IKEA’s success. (Job Design)
4. Locating stores of appropriate size in the most effective place. (Supply network Design)
5. Arranging for the delivery of products to stores. (Supply chain management)
6. Coping with fluctuations in demand. (Capacity Management)
7. Maintaining cleanliness and safety of storage area. (Failure Prevention)
8. Avoiding running out of products for sale. (Inventory Management)
9. Monitoring and enhancing quality of service to customers. (Quality Management)
10. Continually examining and improving operations practice. (Operations improvement)