1 Operations Management

Question 1

1. Definitions

Operations?

Answer 1

Operations: the function of management which consists of all the activities managers engage in for the purpose of producing goods and services.

Question 2

1. Definitions

Operating Management?

Answer 2

Operations Management: Refers to the task of managing the process that transforms resources into finished goods and services.
 Involves- management of resources to achieve outputs (good or service).
 Aims- to maximize the level of productivity and quality through the operations process.
 Operations manager performs POLC in relation to the accurate and efficient coordination of tasks, parts and processes in the production process.

Question 3

1. Definitions

Operations System?

Answer 3

The Operations System: refers to series of procedures and processes an organization undertakes in order to create its outputs of finished goods and services.
 Involves three elements: inputs, processes and outputs.
 Occurs through the transformation of inputs into outputs.

Question 4

2. OVERVIEW (OPERATIONS?)

Answer 4

• All organisations—profit-making or not—produce goods and services (or a combination of these).
• The activities involved in the actual production of goods or services are known as operations.

• The task of operations is to transform inputs (or resources)
such as raw materials, component parts, equipment, and human skills and effort, into goods or services that have value.

• In this sense, operations management is the core activity of an organisation.
• There is an important link between an organisation’s operations and its objectives.
• Without operations, there is no product (good or service).
• Generating greater profit or maximising market share, are typical objectives that depend on efficient production in operations.

Question 5

3. The Operations Manager ?

Answer 5

• The function of an operations manager is to coordinate the transformation of inputs into desired goods and services.

• Operations managers undertake the planning, organizing, leading and controlling needed for the efficient running of a production process.
 The roles of planning, organizing, leading and controlling (POLC) are the usual roles of management.
 In this case, they are applied to the management of operations.

• Operations managers draw on the same range of skills as managers in general.
 They need to communicate effectively, ‘manage’ time, delegate when appropriate, make decisions, solve problems, ‘manage’ stress and so on.

• Operations has to work closely with other departments in a large organisation.

Question 6

3. The Operations Manager

The Role of the Operations Manager?

Answer 6

• Ensuring that the operations system meets the operational strategy and objectives of the organisation as a whole.
• Making strategic decisions relating to planning and designing an operating system e.g. capacity and location.
Inventory management: Determining the levels of stock to be ordered and stored to ensure customer service requirements are being fulfilled on time.
Manufacturing: Determining the production rate required to meet budgets, managing labour costs, controlling cost of wastage, etc.
Quality: Determining required standards, documentation of quality procedures and codes of practice.
Maintenance: Ensuring equipment is reliable.

Question 7

3. The Operations Manager

Planning?

Answer 7

Strategic: 
•	Process and layout.
•	Facilities and location.
•	Quantity of production.
•	Decisions about what product or service to provide.

Tactical:
• Decisions about material resourcing and amounts of its replenishment.
• Layout and process design or reengineering.
• Sourcing of technology.
• Decision about quality management.

Operational:
• Decisions about what to process and when (scheduling).
• Decisions about the order to be taken to process requirements (sequencing).
• Amount of work to be placed onto resources (loading). /Decisions about who does what work and when (rostering/assignments).

Question 8

4. Operations and Business Objectives and Strategy

Answer 8

• Organisations strive to achieve corporate objectives through the operations function.
• Operations system determines the cost of production and the quality of finished products (directly impacts on revenue, costs and profits).
• The organisation’s overall business strategy for achieving its objectives will include strategic planning in operations.
• The operations management can contribute to an organisations achievement of objectives and achievement of its overall strategy by increasing the efficiency, effectiveness and productivity of the operations process.

 By increasing the amount of goods or services produced whilst minimising the time and resources spent, an organisation has a higher chance of retaining a profit.

 As the primary aim of organisations and corporations is maximising profit, and as all planning is based on perusing maximum profit, efficiency and effectiveness of operations can increase the ability of an organisation to retain a profit.