Lecture 1 - Managing operations and processes Flashcards
Operations Management Definition
“Operations management is the activity of managing the resources that are devoted to the creation and delivery of services and products.” Slack and Brandon-Jones (2018: 32)
Operations Management Definition 2
Operations management is “the set of activities that creates value in the form of goods and services by transforming inputs into outputs.” Heizer et al (2017: 42)
Operations Components
• Cost – Efficient operations • Revenue – Satisfied customers • Investment – Capital employed • Capability building – Learning and improvement • Sustainability – Profit, people, planet
IPO Model
Adapted from Slack et al (2016: 14)
Applying IPO/ITO Examples
Process complexity across functions
Function - Functional Process
Enterprise - Cross Functional Process
Network of enterprises - Inter-organisational Process
Process Definition
A process is ‘a structured, measured set of activities designed to produce a specific output for a particular customer or market…. A process is thus a specific ordering of work activities across time and space, with a beginning and an end, and clearly defined inputs and outputs: a structure for action…. Processes are the structure by which an organization does what is necessary to produce value for its customers’
Davenport (1993: 5-7)
Four key characteristics of demand
-Volume of goods and services to be produced
– Variety of different goods and services to be provided
– Variation in the demand for goods and services
– Degree of visibility that customers have of the production process
How and Why Operations Differ: The Four Vs
Service Processes Definition
Service processes involve a change of state of someone or something, e.g. environment, artefacts, people, symbols (information) (Wild, 2002; Miles and Boden, 2000)
CHIP Characteristics of Service
Four D’s of Operation Management
Direct (Steer o&ps)
Design (Shape o&ps)
Deliver (Plan and control o&ps)
Develop (Improve o&ps)
Supply Network Definition (Levels of Analysis)
A supply network is an arrangment of Operations
Operation Definition (Levels of Analysis)
An operation is an arrangment of Processes
Process Definition (Levels of Analysis)
A Process is an arrangement of activities
