Operations Management Overview

Study Notes

Operations are a system that transforms inputs into outputs of greater value.
Operations can also be defined as an organization and coordination of activities to achieve a business goal.

Operations management is the management of processes that transform inputs into goods and services that add value to the customer.
Involves designing, operating, and improving productive systems.

Goods are tangible commodities or items that can be seen, touched, or felt.
Services are immaterial (intangible) objects that can’t be seen, felt, or touched but can be experienced.

Competitive Advantage: Operations Management helps businesses compete locally and globally.
Strategic Alignment: Operations management aligns business functions.
Business Continuity: Operations Management is key to ensuring businesses can operate smoothly and without interruption.

Increase Productivity: Achieve high efficiency, design a production plan, manage daily activités, utilize resources efficiently.
Raises Revenue: Reduce operational costs, balance revenue and costs, maintain product quality.
Achieve Organizational Goals: Implement strategic plans, monitor business activities, implement corrective measures.
Improve Customer Satisfaction: Retain and improve long-term relationships, ensure high quality products.
Reduce Investment Needs: Reduce capital requirements, ensure capital is used efficiently.
Enhance Goodwill: Stabilize goodwill in the market, improve market position, provide better customer service.
Improve Innovation: Implement innovative changes, continuously research and analyse the market.

Planning: Forecasting demand, scheduling, inventory management.
Controlling: Monitoring performance, identifying problems, taking corrective action.
Coordination: Ensuring all departments are working together effectively.
Efficient use of resources: Making the most of available resources.

Define the problem: Clearly understand what you’re trying to solve.
Gather information: Collect data on the problem and potential solutions.
Consider all options: evaluate possible solutions.
Make a decision: Choose the best solution based on the information you’ve gathered.
Evaluate your decision: Assess the effectiveness of your decision and make adjustments as needed.