Operations Management & Information Systems PDF

Operations Management & Information Systems Source: https://www.edx.org/course/operations-management What is operations management? Operations management defined Operations management is the activity of planning and managing the resources which are devoted to the prod...

Operations Management & Information Systems Source: https://www.edx.org/course/operations-management What is operations management? Operations management defined Operations management is the activity of planning and managing the resources which are devoted to the production and delivery of products and services (Slack et al. 2019). www.jamix.com/the-whole-food-production-process-of-a-restaurant-is-tied-to-the-menu/ They are all operations Kitchen unit Back office operation in a manufacturing operation bank Source:Shutterstock/Turner Source: Nigel Slack Retail operation Take-out/restaurant operation Source: Nigel Slack Source: Nigel Slack The three basic functions at Prêt a Manger Nutritional ‘mechanical’ and aesthetic design of the sandwiches and Product/ snacks Service Development Design, location and management Marketing Operations of stores and in- store processes Promotional and the network activities, that supplies them market research, etc. The activities of core functions in some organizations Core functional Internet service Fast food chain International aid Furniture activities provider (ISP) charity manufacturer Maintain hardware, Make burgers, Give service to Make software and content etc. the beneficiaries components Implement new links Serve customers of the charity Assemble Operations and services Maintain furniture equipment Promote services Advertise on TV Develop funding Advertise in to users and get Devise contracts magazines Marketing registrations promotional Mail out appeals Determine pricing and sales Sell advertising space materials for donations policy Sell to stores Devise new Design Develop new Design new Product/serv services and hamburgers, appeals furniture ice develop- commission new pizzas, etc. campaigns Coordinate with ment information content Design decor for Design new fashionable restaurants assistance colours programmes Operations management at... IKEA Design a store layout Design elegant which gives smooth Ensure that the jobs products which can be and effective flow of all staff encourage flat-packed efficiently their contribution to business success Site stores of an Continually examine appropriate size in and improve the most effective operations practice locations Maintain Monitor and enhance cleanliness and quality of service to safety of storage Arrange for fast customers area replenishment of products Source: www.ft.com/content/19819f0b-9982-4f1a-b482-d13aaccf2ce7 The three basic functions of enterprises Product/service development Marketing Operations Operations management in all types of organization Automobile assembly factory – operations management uses machines to efficiently assemble products that satisfy current customer demands Source: Nataliya Hora /Shutterstock.com Operations management in all types of organization Physician (General practitioner) – operations management uses knowledge to effectively diagnose conditions in order to treat real and perceived patient concerns Source: Shutterstock/PT Images Operations management in all types of organization Management consultant – operations management uses people to effectively create the services that will address current and potential client needs Source: Shutterstock/Diego cervo Operations management in all types of organization Disaster relief charity – operations management uses ours and our partners’ resources to speedily provide the supplies and services that relieve community suffering Source: Shutterstock/Zurijeta Operations management uses… machines to efficiently assemble products diagnose to treat real and knowledge to effectively perceived patient conditions concerns people to effectively create services that will address current and potential client needs All operations are input-transformation-output processes Inputs Transformation process Outputs Operations input resources and outputs Transformed resources Materials Information Customers Input Output resources Transformation process products and Customers services Transforming resources Facilities Staff Some operations described in terms of their processes Operation Some of the operation’s Some of the operation’s Some of the operation’s inputs processes outputs Airline Aircraft Check passengers in Transported passengers Pilots and air crew Board passengers and freight Ground crew Fly passengers and freight around Passengers and freight the world Care for passengers Department Products for sale Source and store products Customers and products store Sales staff Display products ‘assembled’ together Information systems Give sales advice Customers Sell products Police Police officers Crime prevention Lawful society, public with Computer systems Crime detection a feeling of security Information systems Public (law-abiding and Information gathering criminals) Detaining suspects Frozen food Fresh food Source raw materials Frozen food manufacturer Operators Prepare food Processing technology Freeze food Cold storage facilities Pack and freeze food Operations can be analyzed at three levels Flow between operations The level of the supply network Flow between processes The level of the operation The level of the process Flow between resources A typology of operations and processes The four Vs... Low Volume High High High Variety Low High Variation in demand Low High Visibility Low A typology of operations and processes (Continued) The implications of high and low Volume in operations and processes... Implications Implications Low repetition Each staff Low High member Volume High performs more of repeatability each task Specialization Less Capital intensive systemization High unit costs Low unit costs A typology of operations and processes (Continued) The implications of high and low Variety in operations and processes... Implications Implications Flexible Well defined Complex High Variety High Low Routine Match customer Standardized needs Regular High unit costs Low unit costs A typology of operations and processes (Continued) The implications of high and low Variation in operations and processes... Implications Implications Changing Stable capacity Variation in High High Low Routine Anticipation demand Predictable Flexibility High utilization In touch with demand Low unit costs High unit costs A typology of operations and processes (Continued) The implications of high and low Visibility in operations and processes... Implications Implications Short waiting Time lag tolerance High Visibility High Low between Satisfaction production and governed by consumption customer Standardization perception Low contact skills Customer contact skills needed High staff utilization Received variety is high Centralization High unit costs Low unit costs A four Vs analysis of two hotel operations Low Volume High High Variety Low High Variation Low High Visibility Low Anatara Bangkok Riverside Formule 1 Hotel Resort and Spa It is important to understand how different operations are positioned on the 4 V’s. Is their position where they want to be? Do they understand the strategic implications of their position? Further Reading Slack N, Brandon-Jones A, Burgess N (2019), Operations Management, Pearson – Chapter 1 Heizer J, Render B, Munson C, Sachan A (2017), Operations management: sustainability and supply chain management, Pearson – Chapter 1 Case Study Design house partnerships at Concept Design Services The ‘design house partnerships at Concept Design Services’ case study Questions 1. Why is operations management important in CDS? 2. How do the company’s products differ? 3. What would you recommend to the company if they asked you to advise them in improving their operations?