operations FULL

Question 1

role of operations management

Answer 1

OPERATIONS: refers to the business processes that involve transformation or production of inputs into outputs
• Outputs can be both goods and services
• This involves
o Planning activities
o Purchasing inputs
o Managing inventory
o Selecting & implementing manufacturing processes
o Developing strategies to gain a sustainable competitive advantage

Question 2

strategic role of operations management

Answer 2

• Strategic decisions: are long term plans & decisions that aim to increase productivity, efficiency or quality affecting all key business functions
• Long-term decisions will cover 3 broad areas:
1. Planning production & delivery
2. Controls to manage quality
3. Improving operations
• Strategic decisions include:
o Products (new products to develop, discontinuation, comparison - > competitors
o Processes (capital, labour & technological developments
o Capacity (venues & containment)
o Location (country of operation & online options)
o Factory layout (how a manufacturing line will be set up)
o People (employee numbers & skills required)
o Quality (measuring & improving quality)