Quality Management and Operations Strategy

Study Notes

Define operations management as a set of activities transforming inputs into outputs to create goods and services.
Identify ten strategic decisions crucial for effective operations management.
Explore career opportunities within the field of operations management.
Understand the distinction between goods (tangible products) and services (intangible offerings).
Differentiate between production (the act of creating goods) and productivity (the measure of efficiency in production).
Learn to compute single-factor and multifactor productivity metrics.
Recognize critical variables necessary for enhancing productivity within an organization.

Operations management (OM) encompasses activities that add value by converting inputs into products or services.
Essential functions in an organization include:
- Marketing: Generates demand for goods and services.
- Production/Operations: Responsible for creating the actual products.
- Finance/Accounting: Tracks financial performance, pays bills, and collects revenue.

Supply chain refers to a global network of organizations and activities supplying goods and services.
Collaboration within the supply chain is essential for achieving customer satisfaction, efficiency, and competitive edge.

OM is one of the three critical functions in any organization, crucial for understanding how to organize for productive enterprise.
Knowledge of goods and services production processes enhances organizational effectiveness.
Operations managers play a vital role in the organization, often managing costly and complex components of the business.

Design of Goods and Services: Establishes operations requirements impacting cost, quality, sustainability, and human resources.
Managing Quality: Focuses on understanding customer quality expectations and developing policies to ensure quality standards are met.
Process and Capacity Design: Determines production methods and involves commitments to specific technologies and resources.
Location Strategy: Involves strategic decisions regarding proximity to customers, suppliers, and workforce while considering costs and infrastructure.
Layout Strategy: Aims to efficiently align capacity, personnel, technology, and inventory for optimal material flow.
Human Resources and Job Design: Involves recruiting and retaining talent while integrating them into the operational system.
Supply Chain Management: Integrates supply chain strategies with the company’s objectives, determining purchasing decisions.
Inventory Management: Involves making informed decisions about ordering and holding inventory to balance supply with customer needs.
Scheduling: Focuses on creating and implementing schedules that optimize resource utilization while satisfying customer demands.
Maintenance: Ensures facility reliability and stability to meet production requirements through effective maintenance strategies.