Introduction to OM Flashcards
What is OM?
Operations function responsible for transforming input to output
OM is the activity of managing the resources which produce and deliver products and services
Strategy - Design - Planning&Control - Improvement - Strategy
Tranformation process
INPUT RESOURCES - Transformed resources (materials, information, customers) and Transformed resources (Facilities, staff)
TRANSFORMATION PROCESS
OUTPUT PRODUCTS AND SERVICES
CUSTOMER
Pre-Industrial Revolution
-1775
- Craft production
- High skill, high contact
- Small scale agriculture
- Subsistence production
- Labour intensive
Industrial Revolution
1776-1899
- Division of labour
- Specialisation
- Mechanisation
- Standardisation
- Growth of new industries
Early 20th Century
1900-1949
- Scientific management
- Mass production
- Moving assembly
- Economies lot size
- Quality control
Late 20th Century
1950-1999
- Material Resource Planning MRP
- Computer tech
- Factory automation
- Lean production
- World class manufacturing
20th Century
2000-
- Mass customisation
- Supply chain management
- Globalisation
- E-commerce
- Relationship management
- Sustainability
4 V’s
Volume
Variety
Variation in demand
Visibility
Performance objectives
Quality Speed Dependability Flexibility Cost
Strategies
Corporate strategy
Business Strategy
Functional strategy
Strategic Implication of OM
The way the operations function is managed and its involvement in overall business strategy can have a direct effect on a firm’s competitiveness
- Implement business strategy
- support business strategy
- drive business strategy
4 Perpectives on Operations Management
Top Down
-What the business want operations to do
Bottom Up
-what day-to-day experiences suggests operations should do
Market perspective
-what the market position requires ops to do
Operations perspective
-what operations resources can do
