Operations Management Overview

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Questions and Answers

What is operations management?

Operations management is the activity of planning and managing the resources which are devoted to the production and delivery of products and services.

Which of the following are considered to be operations?

Back office operation in a bank (correct)

Take-out/restaurant operation (correct)

Retail operation (correct)

Kitchen unit manufacturing operation (correct)

What are the three basic functions of an enterprise?

Finance

Product/service development (correct)

Marketing (correct)

Operations (correct)

Which of the following are considered to be 'transformed resources' in operations?

Information Signup and view all the answers

What are the four Vs of operations?

Volume, Variety, Variation in demand, Visibility. Signup and view all the answers

What are the implications of high volume in operations?

Capital intensive Signup and view all the answers

What are the implications of high variety in operations?

High unit costs Signup and view all the answers

What are the implications of high variation in demand in operations?

Changing capacity Signup and view all the answers

What are the implications of high visibility in operations?

Customer contact skills needed Signup and view all the answers

What are the three levels at which operations can be analyzed?

The level of the supply network, the level of the operation, and the level of the process. Signup and view all the answers

Why is operations management important in Concept Design Services (CDS)? How do CDS's products differ?

Operations management helps CDS to efficiently and effectively manage their resources, optimize operations, and deliver high-quality products to their customers. Their unique, design-led products aim to solve specific needs and offer functionality that traditional products may lack. This focus on differentiation requires a robust operations system that can handle diverse product design and production requirements. Signup and view all the answers

What would you recommend to CDS if they asked you to advise them on improving their operations?

CDS should focus on improving their operations by optimizing their design process, streamlining production, and enhancing customer service. They should also consider implementing a lean manufacturing approach to identify and eliminate waste, improve efficiency, and reduce costs. Signup and view all the answers

Study Notes

Operations Management & Information Systems

Operations management is the activity of planning and managing resources used to produce and deliver products and services. (Slack et al., 2019)
Operations involve various sectors, including back office bank operations, manufacturing, retail, and restaurants.

Operations Management Defined

Operations management is the planning and managing of resources for the production and delivery of products and services.

Examples of Operations

Back office bank operation: Example of a back office bank operation, showing employees at computers.
Kitchen unit manufacturing operation: Example of production line manufacturing using machines.
Retail operation: Example of a retail shop, specifically The Body Shop.
Take-out/restaurant operation: Example of a take-out restaurant, specifically Pret a Manger.

Key Functions at Pret a Manger

Product/Service Development: Includes nutritional and aesthetic design of sandwiches and snacks.
Marketing: Includes promotional activities, market research, etc.
Operations: Involves design, location, management of stores, processes, and supply networks.

Core Functions in Organizations

Internet service provider (ISP): Maintains hardware, software, content; implements new links and services.
Fast food chain: Makes food items (burgers, pizzas, etc.), serves customers, maintains equipment.
International aid charity: Provides service to beneficiaries; manages contracts, mailouts.
Furniture manufacturer: Makes components, assembles furniture.

Operations Management at IKEA

Design elegant and flat-packable products.
Design efficient store layouts.
Ensure all staff contribute to success.
Strategically position store locations.
Maintain cleanliness and safety.
Arrange for quick product replenishment.
Monitor and enhance product quality.

Three Basic Functions of Enterprises

Product/service development: Product design and service creation.
Marketing: Promotion and customer engagement.
Operations: Production, delivery and logistical management.

Operations Management in Different Organizations

Automobile assembly factory: Uses machines to efficiently assemble products according to customer demand.
Physician (General practitioner): Diagnoses and treats patient conditions using knowledge and expertise.
Management consultant: Effectively creates services that meet customer needs using personnel and skills.
Disaster relief charity: Uses resources to quickly deliver supplies and services to help those in need.

Operations Management Uses

Machines: Used efficiently for assembly.
Knowledge: Used effectively for diagnosis and treatment.
People: Used effectively for services creation.

Operations as Systems

All operations are input-transformation-output processes.
Inputs: Materials, information, customers; Transforming resources: facilities, staff.
Transformation process: The process that transforms inputs into outputs.
Outputs: Products, services, satisfied customers.

Operations Process Descriptions

Airline: Pilots and crew fly passengers and freight around the world, check passengers in and board passengers.
Department store: Provide products for sale, arrange products, manage customers.
Police: Deal with crime reports, crime prevention, investigation.
Frozen food manufacturer: Prepare, freeze, and package frozen food.

Levels of Operations Analysis

Operations can be analyzed at the supply network level, operation level or at the process level.

Typology of Operations and Processes

The "four Vs" of operations are volume, variety, variation in demand, and visibility.
- Volume : High (high repetition) or Low (each staff member performs more tasks).
- Variety : High (flexible, complex) or Low (well defined, routine).
- Variation in demand: High (changing, unpredictable) or Low (stable, predictable).
- Visibility : High (short waiting tolerance, customer contact skills) or Low (Time lag between production/consumption).

Case Study: Design House Partnerships at Concept Design Services

Why is operations management important?
How do the company's products differ?
What recommendations can improve operations?

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Description

This quiz explores the fundamentals of operations management and its role in various sectors such as banking, manufacturing, retail, and restaurants. Learn about key functions and real-world examples to enhance your understanding of efficient resource management in service delivery.