Week 1 Flashcards
What is Operations Management?
The activity of managing the resources that create and deliver products
Operations Functions in Fast Food Chain
- locate potential sites for restaurants
- provide processes and equipment to produce burgers
- maintain service quality
- develop, install and maintain equipment
- reduce impact on local area, and packaging waste
Operations Functions International Aid Charity
- produce aid and devleopment projects for recipients
- provide fast emergency response when needed
- procure and store emergency supplies
- be sensitive to local cultural norms
Operation Functions
- procure appropriate raw materials and components
- make sub-assemblies
-assemble finished products - deliver products to customers
- reduce environmental impact of products and processes
3 basic functions of enterprises
Product service development - innovate products = be competitive
Operations - make/deliver products or services
Marketing - influence customers
Give an example of developments in the business and competitive environment
Supermarkets - Aldi, lidl
Sainsburys - benchmark price for Aldi
Give most common type of operations
Manufacturing
Automobile assembly factory
- OM uses machines to assemble products to satisfy demands
Physician
OM uses knowledge to diagnose conditions in order to treat real patient concerns
Management Consulting
OM uses people to effectively create services that will address current and potential client needs
Disaster Relief Charity
OM uses ours and our partners resources to speedily provide the supplies and services that relieve community suffering
Draw the diagram of the operations transformation process.
What are transformed resources?
Resources that are treated, transformed or converted in the process.
What are transforming resources
Resources which act upon the transformed resources
What are examples of dominant transformed resource inputs?
Predominately processing inputs of materials
All manufacturing Operations
Mining companies
Retail Operations
Warehouses
Postal Services
Container shipping line
Trucking companies
Predominantly processing inputs of information
Accountants
Bank Headquarters
Market Research company
Financial Analysis
NEws service
University research unit
Predominantly processing inputs of customers
Hairdressers
Hotels
Hospitals
Mass rapid transports
Theatres
Theme parks
Dentists
Examples of outputs - a mixture of products and services
Examples
Crude oil production
Aluminum smelting
Specialist machine tool production
Restaurant
Information systems provider
Management consultancy
Psychotherapy clinic
Give me examples of transformation processes
Airline - -assented check-in assistance, baggage drop, security / seat check, board passengers, fly passengers and freight around the world, flight scheduling, in-flight passenger care, transfer assistance, baggage reclaim
Department store — source merchandise, manage inventory, display products, give sales advice, sales, aftercare, complaint handling
What are the four dimensions of operations
- Volume of the output
- Variety of the output
- Variation in demand for the output
- Degree of visibility that the creation of the output has for customers
What are the implications of low volume?
- low repetition
- each staff member performs more of each task
- less systemisation
- high unit costs
What are the implications of high volume
- high repeatability
- specialization
- capital intensive
- low unit costs
What are the implications of high variety?
- flexible
- complex
- match customer needs
- high unit costs
What are the implications of low variety?
- well defined
- routine
- standardised
- regular
- low unit costs
What are the implications of high variation in demand?
- changing capacity
- anticipation
- flexibility
- in touch with demand
- high unit costs
What are the implications of low variation in demand?
- stable
- routine
- predictable
- high utilisation
- low unit costs
Summer holiday resort hotels summer vs winter
What are the implications of high visibility?
- short waiting tolerance
- satisfaction governed by customer perception
- customer contact skills needed
- received variety is high
- high unit costs
What are the implications of high and low visibility>
- time lag between production and consumption
- standardization
- low contact skills
- high staff utilisation
- centralisaition
- low unit costs
E.g. sainsburys vs online shopping
What are the implications of high visibility?
- short waiting tolerance
- satisfaction governed by customer perception
- customer contact skills needed
- received variety is high
- high unit costs
What are the implications of low visibility?
- time lag between production and consumption
- standardization
- low contact skills
- high staff utilisation
- centralization
- low unit costs
