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What is operations management?
It is the managing of resources that create and deliver value.
It's to effectively use the company's resources to deliver value to a market of specific needs.
Why is operations management important in every business?
Every business that sells something must use resources to produce this item/service. And OM is about managing resources to create value, it is important in all industries.
Again: operation management uses 'resources to appropriately create outputs that fulfil defined market requirements.
All operations are input-transformation-output processes. Describe the inputs a bit closer.
Materials - Most companies using materials as inputs change the physical nature of the good. But some are changing possession of it, some are storing it, and some are chaing the location.
Information - Same here.
Customers.And same here. Same keywords that is.
Then there's facilities and staff
All operations are input-transformation-output processes. Describe the outputs a bit closer.
roducts and services are very different as outputs. Processes are com used as they are produced.
Most processes produce both products and services. Like oil company. They are mostly concerned with their oil, but might also have technical advice as a part of their company.
Operations management is relevant to all parts of the business. For example, the marketing department will have technical expertise, and it's own process management.
Anyays, we need to define two different types of operations. What are the two?
Operations as a function - meaning the part of the organisation that is responsible for creating and delivering services ad products for the organisation's external customers.
Operations as an activity, meaning the management of the processes within any of the organisation's functions.
All operations processes are similar in that they all transform inputs to outputs. But what are the four dimensions (four v's) that may differ?
- Volume - McD vs cafetieria
- Variation -Summer holiday resort
- Variety - a taxi company
Generally: high volume, low variety, visibility, variation and customer visibility help to keep costs down.
What an operations manager do will always depend on a number of factors. However, some general classes of activities apply to all types of operation irrespective of whether they are service, manufacturing or whatever. Which are these four?
Directing the overall nature and strategy of the operation. A general understanding of operations and processes and their strategic purpose and performance.
Designing the operation's services, products and processes.
Planning and control process delivery.
Developing process performance.
Look at figure 1.10 on page 28. It's good.