Operations Management Lecture Notes for Business PDF

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Definition and importance of operations management Operations management is the creation of everything, it is the process, production and operation of every good and serviceThe importance is that it tells you what all customers want. Any customer, in any industry or market wants stuff that is both c...

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Definition and importance of operations management Operations management is the creation of everything, it is the process, production and operation of every good and service The importance is that it tells you what all customers want. Any customer, in any industry or market wants stuff that is both cheaper and better. It also makes the other functional departments easier, and better run as operations is the heart of the business. Input-transformation-output process Inputs are transformed or transforming resources, such as information, material, staff, customers and facilities. They go through a process where they are designed, developed and undelivered to create an output. An output is a product or service which adds value for customers The process hierarchy Operations can be analysed at three levels; the level of supply network, operation and process. The supply network is the flow between operations. The operation is the flow between processes. The process is the flow between resources (people and facilities) Strategic operation management decisions - 4V’s The 4 V's are the volume dimension, the variety dimension, the variability dimensions and the visibility dimensions Operations Strategy - Implementation business strategy - Supporting business strategy via capabilities which allow the organisation to improve strategic goals - Driving business strategy via unique and long-term sustainable competitive advantages Lean Strategy The aim of a lean strategy is to maintain acceptable customer service while using fewer resources. Elimination of waste from supply chains

Porter’s Generic Strategy Model The Generic Strategies can be used to determine the direction (strategy) of your organisation. Michael Porter uses 4 strategies that an organisation can choose from. He believes that a company must choose a clear course in order to be able to beat the competition. 1. Cost Leadership strategy 2. Differentiation 3. Cost Focus 4. Differentiation Focus

The Five Performance Objective - Quality - being right, having an error free process with error free products and services - Speed - being fast, having a fast throughput and quick delivery - Dependability - being on time, having reliable operations and dependable delivery - Flexibility - being able to change, having the ability to change and having frequent new products with maximum choice - Cost - being productive, having minimum cost and maximum value for producers or minimum price and highest value for customers...