Business Operations and Processes (BOP) Book Summary & Lecture Notes - GRADE 9,0
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Course
Business Operations And Processes (6011P0221Y)
Institution
Universiteit Van Amsterdam (UvA)
Book
Operations Management
Business Operations and Processes (BOP) Summary from Nigel Slack and Alistair Brandon-Jones' "Operations Management" (2016). The summary is 207 pages and includes all the chapters covered in the course 6011P0221Y at UvA, as well as notes from the lectures (in dark blue).
MNO2601 ASSIGNMENT 5 SEMESTER 2 2024 Indicate if the following statement is true or false. Digital information in databases is not seen as inventory. True FalsE A buildings material supplier obtai...
MN02601 Extensive Notes from the prescribed book - Operations Management Notes (1st edition). Alistair Brandon-Jones, Nigel Slack.
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Operations Management
Chapter 1: Operations Management _________________________________________________________________ 2
Chapter 2: Operations Performance _________________________________________________________________ 10
Chapter 3: Operations Strategy ____________________________________________________________________ 20
Lecture 1: Operations, Processes and Operations Strategy _______________________________________________ 31
Reflection Lecture 1: Operations, Processes and Operations Strategy ______________________________________ 35
Chapter 5: The Structure and Scope of Operations _____________________________________________________ 38
Chapter 6: Process Design (pp. 183 – 210) ____________________________________________________________ 49
Chapter 7: Layout and Flow _______________________________________________________________________ 59
Lecture 2: Structure & Scope of Organisations, Process Design and Layout & Flow ____________________________ 68
Reflection Lecture 2: Structure & Scope of Organisations, Process Design and Layout & Flow ___________________ 73
Chapter 10: Planning and Control ___________________________________________________________________ 76
Chapter 11: Capacity Management _________________________________________________________________ 88
Lecture 3: Planning & Control and Capacity Management ______________________________________________ 105
Reflection Lecture 3: Planning & Control and Capacity Management ______________________________________ 112
Chapter 13: Inventory Management _______________________________________________________________ 115
Chapter 14: Planning and Control Systems___________________________________________________________ 129
Lecture Week 5: Inventory Management and Planning & Control Systems _________________________________ 140
Reflection Lecture Week 5: Inventory Management and Planning & Control Systems_________________________ 144
Chapter 15: Lean Operations _____________________________________________________________________ 147
Chapter 16: Operations Improvement ______________________________________________________________ 163
Lecture Week 6: Lean Operations and Operations Improvement _________________________________________ 183
Reflection Lecture Week 6: Lean Operations and Operations Improvement ________________________________ 190
Lecture Week 7: Quality Management, Managing Risk and Project Management ____________________________ 193
Reflection Lecture Week 7: Fact-Based Management, Critical Path Analysis and Reliability ____________________ 204
,Operations Management
Chapter 1: Operations Management
What is Operations Management?
• Operations management is about how organizations create and deliver services and products.
• Operations management is the activity of managing the resources that create and deliver services and
products.
• The operations function is the part of the organization that is responsible for this activity.
• Operations managers are the people who have particular responsibility for managing some, or all, of the
resources that make up the operations function.
o Again in some organizations, the operations manager could be called by some other name.
o E.g. the ‘fleet manager’ in a distribution company, the ‘administrative manager’ in a hospital, or the
‘store manager’ in a supermarket.
• All organisations have ‘operations’ that produce some mix of services and products.
• The operations function is important for any company whose reputation depends on producing safe, high
quality, sustainable and profitable products or services.
Operations in the Organisation
• The operations function is one of the three core functions of any organization.
o the marketing (including sales) function – which is responsible for communicating the organization’s
services and products to its markets in order to generate customer requests;
o the product/service development function – which is responsible for coming up with new and
modified services and products in order to generate future customer requests;
o the operations function – which is responsible for the creation and delivery of services and products
based on customer requests.
• In addition, there are the support functions which enable the core functions to operate effectively.
o These include, for example, the accounting and finance function, the technical function, the human
resources function and the information systems function.
• Almost all organizations will have the three core functions, because all organizations have a fundamental
need to sell their products and services, meet customer requests for services and products, and come up with
new services and products to satisfy customers in the future.
• In practice, there is not always a clear division between the three core functions or between core and
support functions.
o This leads to some confusion over where the boundaries of the operations function should be
drawn.
• It is fundamental to modern management
that functional boundaries should not
hinder efficient internal processes.
• The support functions have a different
relationship with operations than the other
core functions.
o Operations management’s
responsibility to support functions
is primarily to make sure that they
understand operations' needs and
help them to satisfy these needs.
o The relationship with the other
two core functions is more equal –
less of ‘this is what we want’ and
more ‘this is what we can do
currently – how do we reconcile
this with broader business needs?’
• Operations managers need to cooperate
with other functions to ensure effective
organizational performance.
,Operations Management
Why is Operations Management Important in All Types of Organisation?
• Any business that creates something must use resources to do so, and so must have an operations activity.
o Automobile assembly factory – Operations management uses machines to efficiently assemble
products that satisfy current customer demands
o Physician (general practitioner) – Operations management uses knowledge to effectively diagnose
conditions in order to treat real and perceived patient concerns
o Management consultant – Operations management uses people to effectively create the services
that will address current and potential client needs
o Disaster relief charity – Operations management uses ours and our partners' resources to speedily
provide the supplies and services that relieve community suffering
o Advertising agency – Operations management uses our staff’s knowledge and experience to
creatively present ideas that delight clients and address their real needs
• The automobile plant and the advertising agency do have one important element in common: both have a
higher objective – to make a profit from creating and delivering their products or services.
• Yet not-for-profit organizations also use their resources to create and deliver services, not to make a profit,
but to serve society in some way.
• Operations management uses ‘resources to appropriately create outputs that fulfil defined market
requirements’
Operations Management in the Smaller Organisation
• In practice, managing operations in a small or medium-size organization has its own set of problems.
• Large companies may have the resources to dedicate individuals to specialized tasks but smaller companies
often cannot, so people may have to do different jobs as the need arises.
• Such an informal structure can allow the company to respond quickly as opportunities or problems present
themselves.
• But decision making can also become confused as individuals' roles overlap.
• Small companies may have exactly the same operations management issues as large ones but they can be
more difficult to separate from the mass of other issues in the organization.
• However, small operations can also have significant advantages:
o ‘We can be hugely flexible and agile, in what is still a dynamic market.
o But at the same time we have the resources and skills to provide a creative and professional service.
o Any senior manager in a firm of our size cannot afford to be too specialised.
o All of us here have their own specific responsibilities; however, every one of us shares the overall
responsibility for the firm's general development.
o We can also be clear and focused on what type of work we want to do.
Operations Management in Not-For-Profit Organisations
• Operations have to take the same decisions – how to create and deliver service and products, invest in
technology, contract out some of their activities, devise performance measures, improve their operations
performance, and so on.
• However, the strategic objectives of not-for-profit organizations may be more complex and involve a mixture
of political, economic, social or environmental objectives.
o Because of this there may be a greater chance of operations decisions being made under conditions
of conflicting objectives.
The New Operations Agenda
• Over the last few years, changes in the business environment have had a significant impact on the challenges
faced by operations managers.
o Many (although not all) industries have experienced increasing cost-based competition while
simultaneously their customers' expectations of quality and variety have increased.
o Markets have become more global, sometimes meaning a demand for a higher variety, or even
totally customized products and services.
o Rapidly developing (often digital) technologies are leading to more frequent, new product/service
introductions.
o Customers have increased ethical and environmental sensitivity.
o Also, the impact of new process technologies, in both manufacturing and service, is having a
dramatic effect, radically altering the operating practices of almost every industry.
, Operations Management
• This leads to operations having to change the way they create their products and services, serve their
customers, relate to stakeholders and involve their workforce.
• Just as importantly, globalized supply markets are opening new options in how operations source input goods
and services.
o Very few businesses have not at least considered purchasing from outside their geographic area.
o But while bringing opportunities for cost savings, a bigger supply market also brings new problems
of long supply chains, supply vulnerability and reputational risk.
• These responses form a major part of a new agenda for operations.
o Parts of this agenda are trends which have always existed but have accelerated, such as
globalization and increased cost pressures.
o Part of the agenda involves seeking way to exploit new technologies, most notably the Internet.
What is the Input-Transformation-Output Process?
• All operations create and deliver service and
products by changing inputs into outputs using an
‘input–transformation–output’ process.
• Operations are processes that take in a set of input
resources which are used to transform something,
or are transformed themselves, into outputs of
services and products.
Inputs to the Process
• One set of inputs to any operation’s processes is
transformed resources.
o These are the resources that are treated, transformed or converted in the process.
o They are usually a mixture of the following:
o Materials – operations which process materials could do so to transform their physical properties
(shape or composition, for example).
§ Other operations process materials to change their location (parcel delivery companies, for
example).
§ Some, like retail operations, do so to change the possession of the materials.
§ Finally, some operations store materials, such as warehouses.
o Information – operations which process information could do so to transform their informational
properties (that is, the purpose or form of the information).
§ Some change the possession of the information, for example market research companies
sell information.
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