Operations management is the activity of managing the resources and
delivering services and products. The operations function is the part of the
organisation that is responsible for this activity.
Three core functions of any organisation:
1. Marketing - which is responsible for communicating the organizations
services and products to its markets in order to generate customers
requests
2. Product/Service - which is responsible for coming up with new and
modified services and products in order to generate future customer
request
3. Operations function - which is responsible for the creation and delivery
of services and products based on customer requests
Four support functions:
1. Technical function
2. Accounting and finance function
3. Human resources function
4. Information systems function
Operations uses resources to appropriately create outputs that fulfill defined market
requirements.
Changes in the business environment had a significant impact on the challenges
faced by operations managers. In response, operations managers have had to
adjust their activities to cope, especially in following areas:
- New technologies
- Different supply arrangements
- Increased emphasis on social and
environmental issues
All operations create and deliver service and
products by changing inputs into outputs using
an
‘input-transformation-output’ process.
Inputs in a
process:
- Materials
- Information
- Customers
Building blocks of an operations
- Facilities
- Staff
,Outputs of a process:
- Products and services
- Products
- Services
B2B: business to business
operations B2C: business to
customer operations
Operations is a collection of processes interconnecting with each other to form a
network. Hierarchy:
1. The process
2. The operations
3. The supply network
Meanings of operations:
- Operations as a function, meaning the part od the organization which
creates and delivers services and product for the organization's
external customers
- Operations as an activity, meaning the management of the processes
within any of the organizations functions.
Differ in operations:
1. Volume, hoeveel er van een
product wordt gemaakt
2. Variety on output, hoe
gevarieerd een product is,
gespecialiseerd of
gecentraliseerd
3. Variation in demand, hoge of
lage variëteit in de vraag
4. Visibility, hoeveel een
customer meemaakt van
een process.
What do operations managers do?
- Directing the overall strategy of the operation
- Designing the operations services, products and processes
- Planning and control process delivery
- Developing process performance
Increasingly, operations managers have a responsibility for an operations
environmental performance.
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