1: OPERATION STRATEGY: Operations Management

Question 1

What is operations management?

Answer 1

The activity which manages resources that produce and deliver goods and services

Question 2

Why is operations management important in all types of organizations?

Answer 2

3 core functions: Marketing & Sales (to generate customer requests). Service development (new and modified products, generating future customer requests). Operations function (producing and delivering products and services)

Question 3

What is the input-output transformation process?

Answer 3

Transformed inputs: materials (manufacturing), customers (hotels, hairdressers), information (accountants)
Transforming:facilities, staff
Output: tangibles, intangibles

Question 4

What is the process hierarchy?

Answer 4

Supply network: external (external and internal organization), internal (among processes).
Operation: network of processes, flow between them
Process: network of resources, flow between them

Question 5

Different operations characteristics?

Answer 5

Volume H (low cost) - #rooms
Variety L (low cost) - #different outputs
Variation L (low cost) - high/low season
Visibility L (low cost)

Question 6

What are the activities of operations management?

Answer 6

Direct (strategy of operation)
Design (operations of services, products and processes)
Deliver
Develop (process performance)