Week 9 - Operations Management Flashcards
Definition of operations
Is the business function for planning, coordinating and controlling the resources needed to produce products and services for a company
Where do we see operations management? (4)
- Factories/ manufacturing plants
- Bank
- Hospitals
- Events
Bank operations management (8)
- Teller scheduling
- Check clearing
- Collection
- Transaction progressing
- Facilities design/output
- Vault operations
- Maintenance
- Security
Financial bank operations (5)
- Investments
- Securities
- Real estate
- Accounting
- Auditing
Marketing bank operations (2)
- Loans e.g commercial, industrial, financial, personal, mortgage
- Trust department
Airline operations (5)
- Ground support equipment
- Maintenance
- Ground operations including facility maintenance and catering
- Flight operations such as crew scheduling, flying, communications, dispatching
- Management service
Finance/accounting airline operations (2)
- accounting: accounts payable, accounts receivable, general ledger
- finance: cash control, international exchange
Marketing in airline operations (2)
- Traffic administration: reservations, schedules, tariffs (pricing)
- Sales advertising
Manufacturing operations (7)
- Facilities: construction, maintenance
- Production and inventory control, scheduling materials control
- Quality assurance and control
- Manufacturing - tooling, fabrication and assembly
- Design - product development and design detailed product specifications
- Industrial engineering - efficient use of machines, space, and personnel
- Product analysis - development and installation of production tools and equipment
Finance/accounting manufacturing operations (3)
- Disbursements/credits - accounts payable, accounts receivable, general ledger
- Funds management - money market, international exchange
- Capital requirements - stock issue, bond issue and recall
Marketing manufacturing operations (4)
- Sales promotion
- Advertising
- Sales
- Market research
List the different operations functions (6)
- Technical function
- Product/service development function
- Marketing function
- Information systems (IS) function
- Human Resources (HR) function
- Accounting and finance function
Features of technical functions (2)
- Process technology needs
* Process technology options
Product/service development function (2)
- Communicating the capabilities and constraints of operations processes
- New product/service ideas
Feature of Marketing function (2)
- Market requirements
* Communicating the capabilities and constraints of operations processes
Features of information systems functions (2)
- Communicating information systems needs
* Systems for design, planning and control and improvement
Features of Human Resources function (2)
- Communicate human resource needs
* Recruitment, development and training
Features of accounting and finance function (2)
- Financial analysis for performance measurement and decision making
- Provision of relevant data
What is operations management?
Is the set of activities that create value in the form of goods and services by transforming inputs (I.e resources) into outputs
Generalised input-output transformation model (4)
- Inputs to transformation to outputs
- Inputs can be: Labour, capital, materials and managers
- Transformation can be: materials, information and customer
- Outputs can be: goods and services
What is the importance of operations management? (3)
- Is one of the three major functions of any organisation
- Shows how goods and services are produced
- OM is a costly part of an organisation
Three prominent figures in operations management
- Frederick Taylor (1850-1915): scientific management theory
- Frank and Lillian Gilbreth: waste reduction and efficiency methods
- Henry Ford: T-model Ford car, first assembly line, fair wages to workers
Differences between manufacturing and service operations (5)
- Service operations has intangible products where as manufacturers have tangible products
- In service operations the product cannot be inventoried but in manufacturing it can
- Service operations have high customer contact where as manufacturers have a low customer contact
- Service operations have a short response time where as manufactures have a long response time
- Service operations more labour intensive and manufacturing is more capital intensive
Similarities between manufacturing and service operations (5)
- Use technology
- Have quality, productivity & response issues
- Forecast demand
- Have capacity, layout, and location issues
- Have customers, supplies scheduling and stopping issues
4 Operations management responsibilities
- Planning
- Controlling
- Organisation
- Staffing
Features of Planning in operations (8)
- Capacity utilisation
- Location
- Choosing products or services
- Make or buy
- Layout
- Projects
- Scheduling
- Market share
Features of controlling in operations management (3)
- Inventory
- Quality
- Costs
Features of organisation in operation management (3)
- Degree of standardisation
- Subcontracting
- Process selection
Feature of staffing in operations in operations management (4)
- Hiring/lay off
- Use of overtime
- Incentive plans
- Job assignments
What are the 9 strategic decisions in operations management
- Design of goods and services
- Managing quality
- Process and capacity design
- Location strategy
- Layout strategy
- Human Resources and job design
- Inventory management
- Scheduling
- Maintenance
Importance of the Design of goods and services - OM strategic decisions (2)
- Defines what is required of operations
* Product design determines quality, sustainability and Human Resources
Importance of managing quality - OM strategic decisions (2)
- Determines the customer’s quality expectations
* Establish policies and procedures to identify and achieve that quality
Importance of the process and capacity design - OM strategic decisions (2)
- Analysis of how a good or service is produced
* Commits management to specific technology, quality, resources and investment
Importance of location strategy - OM strategic decisions (2)
- Nearness to customers, suppliers and talent
* Considering costs, infrastructure, logistics and government
Importance of layout strategy - OM strategic decisions (2)
- Integrate capacity needs, personnel levels, technology, and inventory
- Determine the efficient part of the total system design
Importance of Human Resources and job design - OM strategic decisions
- Recruit, motivate, and retain personnel with the required talent and skills
- Integral and expensive part of the total system design
Importance of inventory management - OM strategic decisions (2)
- Inventory ordering and holding decisions focus
* Optimise considering customer satisfaction, supplier capability and production schedules
Importance of scheduling - OM strategic decisions (2)
- Determine and implement intermediate and short term schedules
- Utilise personnel and facilities while meeting customer demands
Importance of maintenance - OM strategic decisions (2)
- Consider facility capacity, production demands and personnel
- Maintain a reliable and stable process
What are the 4 different operations strategy perspectives
- Top-down - what the business wants operations to do
- Market requirement - what the market position requires operations to do
- Bottom-up - what day to day experience suggests operations should do
- Operations resources - what operations resources can do
Five performance objectives for operations management (Internal/external)
- Fast through out/speed - short delivery time
- Reliable processes/dependability - dependable delivery
- Ability for change/flexibility - frequent new products and services, wide product and service range, volume and delivery adjustments
- Error-free processes/quality - on specification products & services
- Cost - low price, high profit margin or both
What are order qualifiers?
They are basic criteria that permit firms products to be considered as candidates for purchase by customers
What are order winners?
They are the criteria that differentiates the products and services are firm from another
