Operations

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Introduction / Operations Strategy / Competitive Advantage

* This function is devoted to production and delivery of products and services * The managers have a particular responsibility for managing the resources which comprise the operations function * Production and operations management deals with the specialist field in a business organisation that is primarily responsible for managing the conversion processes (also referred to as the transformation processes) whereby goods (or products) are manufactured and/or services are rendered. * Because of the interrelationships among its different functional components, an ops manager must have a reasonable knowledge of the internal workings of this discipline. Without this knowledge, it is conceivable that the business will not be able to manufacture products and/or render services that meet the specific operations-based requirements (in terms of low cost, high quality, dependability, flexibility and speed) of its customers and/or clients. * all organizations need production and operations management because they all have a function that is specifically responsible for manufacturing products/services, which the organization hopes to deliver in its quest to satisfy the needs of its customers or clients. * In order for ops management to be effective the goal is to manufacture goods/services that will satisfy the needs of the customers or clients of the business in such away that it is able to make money/a profit * Ops management occupies a central position in the organization. Certain functions with which the production/operations function must interact are seen as fundamental or ``core'' to the business organisation (eg marketing, new product/service development and operations), while others are seen as supportive (eg accounting and finance, human resource, and IT). * The three main components of the transformation model are inputs that represent the facilities and staff, the transformation process by which is meant materials, info and customers and outputs that are either products or services or a combination of the two. * Transformed resources are resources that are to be treated, transformed or converted in the process, as mentioned above, and transforming resources are resources that actually do the treating, transforming or converting, like facilities (buildings, equipment, plant, machines, etc) and staff people who operate, plan and control the actions).

* Dominant focus of production and operations management
* The ``mechanisms'' needed to treat, to convert, or to transform inputs to outputs are processes. * Thus operations management is all about managing these processes to manufacture, produce, and make products, or to render, deliver or provide services in the most effective and efficient manner. An operation is usually made up of a collection of such interconnected processes and sub-processes. * A hierarchy of operations refers to the notion that any particular operation is made up of a number of smaller or sub-operations, which have their ``own'' set of inputs that they treat, transform or convert to produce their output in the form of finished goods or services * An operation can be broken down into the three levels of operations analysis, namely: * the business level (the whole supply network with the flow of people and resources between operations), * the operational level itself (the flow between processes) * Finally, the process level (the flow between the resources, people and facilities * The supply network is the network of supplier and customer operations that have relationships with an operation * An internal supplier is the process or individual within the operation that supply products or services to other processes or individuals within the operation * An internal customer is the process or individual within the...
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