WEEK 11-OPERATIONS AND SUPPLY CHAIN MANAGEMENT:
Operations Management is one of the essential business functions and is therefore vital to any organizational system that delivers products and services , for example a bank, airline, or computer manufacturer. At the very core, operations management is all about, designing, creating, controlling and improving the many operational processes within a company (in such system environments).
Operations management deals with a transformation of inputs such as raw materials, labour, capital and information into outputs such as goods and services and can include finished products that are ready for consumptions and semi ready products such as work-in-progress or inputs for other operations. Transformation of inputs usually requires a series of processes (steps) in order to get the desired output. Successful transformation depends on sufficient feedback so that we can continuously control and improve the existing processes. Effective process control could for example suggest that we require a raw material of a different quality, staff with more skills or more information about our customer’s requirements. OPERATIONS MANAGEMENT HAS TO WORK LIKE CLOCK WORK. MANUFACTURING PROCESSES: Transformation of material into physical goods, goods can be transported and/or stored SERVICE: Primary value adding activity is not easily transported or stored. Customers by a product/service bundle.Dining in a restaurant: combined with the FOOD and the experience. EMIRATES PROCESS: emptying dirty dishes from a flightwashing dishes (enough for LA breakfast, lunch and dinner) making food (handmade) freezingAssembling (All in one hour) 1. Sophisticated operations require many operational decisions. Firstly the operational strategy has to match and support the overall aims of the business. For example are we aiming to be a low-end provider or are we aiming to target the high end luxury market. The operations strategy has to match these aims; it is made up of a number of separate decisions: ranging from structural to infrastructural aspects. -As part of the STRUCTURAL DECISIONS we have to determine the output capacity, that is how much we use and what kind out output we are planning to produce. Accordingly we have plan the size and location of individual company FACILITIES and within each facility decisions have to be made in regard to the most appropriate process technology that will meet the capacity requirements.
CAPACITY: Amount, timing, type
FACILITIES: Size, Location, focus
PROCESS TECHNOLOGY: Equipment, Automation, timing
-INFRASTRUCTURAL DECISIONS: Requirements and investments for employees are evaluated; furthermore sourcing decisions need to be made (in house, or from a supplier?). All these decisions will have an impact on the quality of our output, hence operations manager have to figure out the most appropriate ways to ensure the desired level of quality is achieved. E.g. an airline could follow a low end strategy: Jetstar, or target the middle to high-end market like Emirates does so. The combination of decisions that we may take as part of the operations strategy have to support the overarching goals of the business.
WORK FORCE: Training, pay, size
SOURCING: independence, number, make vs. buy
QUALITY: prevention, methods, measurement.
2. FORECASTING IS NECESSARY to understand future decisions regarding the level of demands that are most likely experienced in the short, medium or even long term. Understanding of this demand allows companies to gear with a series of decisions regarding: raw materials, sales and capacity to be developed. E.g. an airline needs to forecast the amount of passengers within the flight and for the various destinations (different menu’s for different destinations) this knowledge allows them to make informed decisions with regard to various operation tasks.
3.Forecasting and the strategy largely determine CAPACITY MANAGEMENT: e.g. size of company...
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