Operations Management Chapter 11

Study Notes

Operations management encompasses activities, decisions, and responsibilities linked to executing the operations function.
It transforms resources (labor, materials, equipment, technology) into outputs (finished goods/services).
Operations management is characterized as cross-functional, dynamic, and a continual process.

Decisions in operations management affect multiple functions within an organization such as finance, marketing, and human resources.
A breakdown in machinery can halt production, impacting delivery schedules and overall operations efficiency.
Achievements in operations management lead to increased efficiency, improved productivity, and enhanced employee morale.

Identified by Schonberger, there are 16 principles that improve efficiency across operations management, focusing on customer knowledge, competition, and quality control.
Key operational principles include:
- Collaboration with the next and final customers.
- Commitment to continuous improvement in quality and cost.
- Streamlining processes by reducing components and enhancing efficiency.
- Emphasizing just-in-time production to minimize inventory waste.

Ten strategic operations management decisions are crucial for organizational effectiveness.
Understanding the integrated nature of business functions ensures cohesive operations.
Differentiation between productivity (output per input) and efficiency (effective use of resources) is key to performance evaluation.
current trends and challenges in operations management involve adapting to market changes and technological advancements.

An operations manager requires specific skills, including problem-solving, teamwork, and resource management.
Essential traits include the ability to maintain quality, improve processes, and adapt to changes within production environments.