Podcast
Questions and Answers
What are the three main types of business paradigms described in the text?
What are the three main types of business paradigms described in the text?
What is the primary focus of "Operations Management"?
What is the primary focus of "Operations Management"?
Operations management focuses on how organizations produce and distribute goods and services.
The "operations strategy" is formulated by the company's senior management, based on corporate and business strategies.
The "operations strategy" is formulated by the company's senior management, based on corporate and business strategies.
True
Which of the following is NOT a key element of the Operations Strategy?
Which of the following is NOT a key element of the Operations Strategy?
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What are the five operations performance objectives discussed in the text?
What are the five operations performance objectives discussed in the text?
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What is the difference between "qualifiers" and "order-winners" in the context of performance objectives?
What is the difference between "qualifiers" and "order-winners" in the context of performance objectives?
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What are the main factors that influence performance objectives?
What are the main factors that influence performance objectives?
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What was Lasik Vision's competitive priority?
What was Lasik Vision's competitive priority?
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What were some of the consequences of Lasik Vision's aggressive price-driven strategy?
What were some of the consequences of Lasik Vision's aggressive price-driven strategy?
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What does the text suggest is a crucial element for achieving success in a competitive market?
What does the text suggest is a crucial element for achieving success in a competitive market?
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Study Notes
Operations Management
- Catollica Porto Business School offers an undergraduate degree in operations management.
- The school is Triple Crown accredited.
- Operations Management includes introduction to operations management, cross-functional relationships of operations management, the economic contribution of operations management.
- Operations strategy & performance includes operations strategy, KPIs of operations, and performance objectives.
- The influence of customers, competitors, and life cycle is also part of operations strategy.
- The change in business paradigms includes mass production (early 20th century), lean manufacturing (late 20th century), and mass customization (early 21st century).
- Demand is generally higher than supply.
- High competition is present.
- "Globalization" plays a key role.
- Lean manufacturing is also a crucial aspect of this paradigm shift.
- Examples include just-in-time, technology management, and technology + management + innovation.
Operations Management Model
- The model involves suppliers, input resources (materials, information, clients, resources, facilities, human resources), design, strategic objectives, technology competition, competitiveness & positioning, operations strategy, operations management, planning & control, improvement, and products/services.
- The transformation process (input, design, improvement, output) occurs after planning and control.
- Business questions that are discussed include how to buy, what to produce, when to produce, processes & layout, how to reduce costs, and how to improve.
What is Operations Management?
- Operations management addresses how organizations produce and distribute goods and services.
- Operations strategy includes performance analysis, strategy definition.
- Direct, develop, design, and deliver are key components.
- Project, layout, flow, process, and analysis are also included.
Operations Management Example (IKEA)
- Elegant flat-packed products.
- Efficient store layout, smooth flow.
- Staff encourages business success.
- Effective store locations.
- Maintaining cleanliness and safety.
- Fast replenishment of products.
- Quality service to customers.
Where Does Operations Fit in?
- Key function in manufacturing and service companies.
- Operations are present in various industries (banking, construction, government, healthcare, manufacturing, retailing, transportation, wholesaling).
- Enterprise Resource Planning (ERP) software, especially SAP, is frequently utilized.
Operations Functions Examples
- Examples of diverse operations functions are demonstrated across different industries, including churches, fast-food restaurants, furniture manufacturers, etc.
- These functions illustrate the versatility of operations management across different sectors.
OM Inter-functional Relationships
- Relationships between engineering/technical, accounting/finance, human resources, product/service development, and information technology (IT) functions.
- Understanding of human resources needs and recruitment, development, and training.
- Product/service development function capabilities and constraints.
- Understanding of technology needs and new product ideas/service ideas.
Operations Management Levels
- Supply network level: flow interactions between operations
- Operation level: interaction between processes
- Process level: flow of relations between resources
OM's Contribution to the Economic Bottom Line
- Lower costs and process efficiency
- Operations excellence
- Enhanced service leads to revenue security
- Reduced errors
- Higher capacity utilization
- Lower capital requirements
Operations Strategy & Performance
- Focuses on corporate, business, and operations strategies to gain competitive advantage.
- Performance is influenced by clients, competitors, and the product/service life cycle.
Strategy Hierarchy
- Key strategic decisions involving what business to be in, what to acquire, how to allocate cash, mission, strategic objectives, and how to compete.
- Influencing factors such as economic, social, political environments, customer/market dynamics, competitor activity, and financial constraints.
- Functional strategies are related to specific departments within an organization.
Operations Strategy Decisions/Performance
- Operations strategies and decisions affect aspects like capacity, virtual reality technology, supplier development, equipment tracking, organizational structure (staff meetings), and capacity, supply networks, process technology, and development/organization.
- Performance objectives encompass aesthetic innovation, presentation advice, high customization, fast and dependable supply, quality, speed, dependability, and cost.
- Operations should satisfy market requirements related to customers and competitions.
Type of Performance Objectives
- Qualifiers: Minimum standards for acceptability.
- Order Winners: Superior characteristics distinguishing from competitors.
Effect of Clients and Competitors
- Clients' preferences (e.g., speed vs. cost in taxi and bus services), impacting operational strategies.
- Competitors' strategies impact decisions like pricing, speed, and flexibility in fast delivery services.
Effects of Product/Service Life Cycles
- Product life stages (introduction, growth, maturity, decline) influence relevant operations decisions - like quality, price, speed, dependability.
- A company's focus shifts across product lifecycles, and their strategy needs to shift accordingly.
Performance Objective Trade-offs
- Variety vs. cost efficiency in operations. Balancing flexibility and efficiency is crucial.
Case Studies
- This topic covers a case study of Lasik Vision Corporation, exploring competitive strategies, operational efficiency, and potential issues.
What is Operations Management and how Does it Work?
- Next class will cover process design and analysis.
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Description
This quiz covers key concepts in Operations Management, including its introduction, strategies, and performance objectives. Explore the evolution of operations practices from mass production to lean manufacturing and understand the impact of globalization on competition. Test your knowledge on how operations management contributes to business success.
