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Summary book Operations management
Summary of Operations Management (2016), Slack, Brandon-Jones & Johnston, eighth edition. Chapters 1-11, 13-18. This book is used for the course Operations management at Tilburg University.
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Door: kimberlymonique97 • 5 jaar geleden
Voorbeeld van de inhoud
Operations managementChapter 1: Operations management
Operations management= the activtty iof managvng the resiources that create and delvier serivces and
prioducts.
Operations function= the part iof the iorganvaation that vs respionsvele fior thvs activtty.
Three ciore functions iof anty iorganvaationn
The marketng vncludvng sales) functionn ciommunvcatng the serivces and prioducts tio
markets vn iorder tio generate custiomer requests.
The prioduct/serivce deieliopment functionn ciomvng up wvth new and miodvfed serivces and
prioducts vn iorder tio generate future custiomer requests.
The ioperations functionn creation and delvierty iof serivces and prioducts eased ion custiomer
requests.
Operations management uses resiources tio apprioprvatelty create ioutputs that fulfl defned market
requvrements. Small ciompanves maty haie exactlty the same ioperations management vssues as large
iones eut thety can ee miore dvfcult tio separate friom the mass iof iother vssues vn the iorganvaation.
Operations management vs alsio releiant tio iorganvaations whiose purpiose vs niot prvmarvlty tio earn
priofts. Hioweier,i the strategvc ioejecties iof niot-fior-prioft iorganvaations maty ee miore ciomplex and
vniiolie a mvxture iof piolvtcal,i ecioniomvc,i siocval ior enivrionmental ioejecties. Because iof thvs there
maty ee a greater chance iof ioperations decvsvions eevng made under ciondvtions iof cionfvctng
ioejecties.
Changes vn the eusvness enivrionment that haie had a svgnvfcant vmpact ion the challenges faced ety
ioperations managersn
Increasvng ciost-eased ciompettion whvle svmultaneiouslty custiomers’ expectations iof qualvtty
and iarvetty haie vncreased.
Markets haie eeciome miore glioeal.
Rapvdlty deieliopvng technioliogves.
Custiomers haie vncreased ethvcal and enivrionmental sensvtivtty.
New priocess technioliogves are radvcallty altervng the ioperatng practces.
Input-transfiormation-ioutput priocessn ioperations are priocesses that take vn a set iof vnput resiources
whvch are used tio transfiorm siomethvng,i ior are transfiormed themselies,i vntio ioutputs iof serivces and
prioducts.
One set iof vnputs tio anty ioperation’s priocesses vs transfiormed resiourcesn
Matervalsn
- Transfiorm thevr phtysvcal priopertes.
- Change thevr liocation.
- Change the piossessvion iof the matervals.
- Stiore matervals.
Infiormationn
- Transfiorm thevr vnfiormational priopertes
- Change the piossessvion.
- Change the liocation iof the vnfiormation.
- Stiore the vnfiormation.
, Custiomersn
- Change thevr phtysvcal priopertes.
- Stiore acciommiodate) custiomers.
- Transfiorm the liocation iof custiomers.
- Transfiorm thevr phtysvioliogvcal state.
- Transfiorm thevr pstychioliogvcal state.
The iother set iof vnputs tio anty ioperations priocess vs transfiormvng resiourcesn
Facvlvtesn euvldvngs,i equvpment,i plant and priocess technioliogty iof the ioperation.
Stafn peiople whio ioperate,i mavntavn,i plan and manage the ioperation.
Priocess= an arrangement iof resiources and activtes that transfiorm vnputs vntio ioutputs that satsfty
vnternal ior external) custiomer needs. Each priocess vs,i at the same tme,i an vnternal supplver and an
vnternal custiomer fior iother priocesses.
Hverarchty iof ioperationsn ione ciould defne manty dvferent leiels iof analtysvs,i mioivng upwards friom
small tio larger priocesses.
Operations priocesses dvfer vn a numeer iof watys,i the fiour Vsn
The iiolume dvmensvionn
- Hvgh iiolumen hvgh repeataevlvtty,i specvalvaation,i capvtal vntensvie,i liow unvt ciosts.
- Liow iiolumen liow repettion,i each staf memeer perfiorms miore iof each task,i less
stystemataation,i hvgh unvt ciosts.
The iarvetty dvmensvionn
- Hvgh iarvettyn fexvele,i ciomplex,i match custiomer needs,i hvgh unvt ciosts.
- Liow iarvettyn well defned,i rioutne,i standardvaed,i regular,i liow unvt ciosts.
The iarvation dvmensvionn
- Hvgh iarvationn changvng capacvtty,i antcvpation,i fexvevlvtty,i vn tiouch wvth demand,i hvgh unvt
ciosts.
- Liow iarvationn staele,i rioutne,i predvctaele,i hvgh utlvaation,i liow unvt ciosts.
The ivsvevlvtty dvmensvionn
- Hvgh ivsvevlvttyn shiort wavtng tiolerance,i satsfaction gioierned ety custiomer perception,i
custiomer ciontact skvlls needed,i recevied iarvetty vs hvgh,i hvgh unvt ciosts.
- Liow ivsvevlvttyn tme lag eetween prioduction and cionsumption,i standardvaation,i liow
ciontact skvlls,i hvgh staf utlvaation,i centralvaation,i liow unvt ciosts.
Hvgh iiolume,i liow iarvetty,i liow iarvation and liow custiomer ciontact all help tio keep priocessvng ciosts
diown.
We classvfty ioperations management activtes under the fiour headvngsn
Dvrectng the ioierall strategty iof the ioperation.
Desvgnvng the ioperation’s resiources and priocesses.
Plannvng and ciontriol priocess delvierty.
Deieliopvng priocess perfiormance.
Enivrionmental sustavnaevlvtty= the extent tio whvch eusvness activtty negatielty vmpacts the natural
enivrionment.
Chapter 2: Operations performance
Operations management’s fiocus ion vmprioiement can piotentallty make ioperations the drvier iof
vmprioiement fior the whiole iorganvaation. Thriough the ciontnual learnvng that can ciome friom vts
vmprioiement activtes,i ioperations management can euvld the dvfcult tio vmvtate capaevlvtes that can
,haie a svgnvfcant strategvc vmpact. Operations management vs ierty much cioncerned wvth hiow thvngs
are dione,i and there vs a relationshvp eetween priocess and ioutciome. Operations managers must trty
tio ee,i svmultaneiouslty,i ecioniomvcallty ivaele whvle eevng siocvallty and enivrionmentallty respionsvele.
Operations can judge vts perfiormance at three leielsn
The societal level:
Stakehioldersn the peiople and grioups whio haie a legvtmate vnterest vn the ioperation’s activtes
vnternal ior external).
In anty kvnd iof iorganvaation,i vt vs a respionsvevlvtty iof the ioperations function tio understand the
siometmes cionfvctng) ioejecties iof vts stakehiolders and set vts ioejecties acciordvnglty.
Ciorpiorate siocval respionsvevlvtty CSR)n the vdea that ioperations shiould take vntio acciount thevr vmpact
ion a erioad mvx iof stakehiolders.
Trvple eiotiom lvne TBL,i ior 3BL)n the vdea iof a erioader apprioach tio assessvng an iorganvaation’s
perfiormance,i alsio kniown as ‘peiople,i planet and prioft’. A sustavnaele eusvness ealances ecioniomvc,i
enivrionmental and siocvetal vnterests.
Peioplen the siocval eiotiom lvne. Busvnesses shiould accept that thety eear siome respionsvevlvtty
fior the vmpact thety haie ion siocvetty and ealance the external siocvetal cionsequences iof thevr
actions wvth the miore dvrect vnternal cionsequences.
Planetn the enivrionmental eiotiom lvne. It vs generallty taken tio mean the extent tio whvch
eusvness activtty negatielty vmpacts the natural enivrionment.
Prioftn the ecioniomvc eiotiom lvne. Operations managers must use the ioperation’s resiources
efectielty.
The strategic level:
Fvie aspects iof ioperations perfiormance that we vdentfed as ciontrveutng tio the ‘ecioniomvc’ aspect iof
the trvple eiotiom lvne that can haie a svgnvfcant vmpactn
Operations management afects ciostsn the efcvencty wvth whvch an ioperation purchases vts
transfiormed and transfiormvng resiources,i and the efcvencty wvth whvch vt cionierts vts
transfiormed resiources,i wvll determvne the ciost iof vts prioducts and serivces.
Operations management afects reienuen ioperations managers are dvrectlty respionsvele fior
vssues such as qualvtty,i speed iof delvierty,i dependaevlvtty and fexvevlvtty.
Operations management afects the requvred leiel iof vniestmentn prioducvng miore ioutput
wvth the same resiources afects the requvred leiel iof vniestment.
Operations management afects the rvsk iof ioperational favluren well-desvgned and run
ioperations shiould ee less lvkelty tio favl and vf thety eier dio sufer favlures,i thety shiould ee aele
tio recioier faster and wvth less dvsruption resvlvence).
Operations management afects the aevlvtty tio euvld the capaevlvtes ion whvch future
vnnioiation vs easedn ioperations managers haie a unvque ioppiortunvtty tio learn friom thevr
expervence iof ioperatng thevr priocesses vn iorder tio understand miore aeiout thiose priocesses.
The operation level:
Operations perfiormance ioejectiesn
Qualvttyn prioivdvng errior-free gioiods and serivces whvch are ft fior thevr purpiose. Qualvtty niot
ionlty leads tio external custiomer satsfaction,i eut makes lvfe easver vnsvde the ioperation as
welln
- Qualvtty reduces ciostsn the fewer mvstakes,i the less tme wvll ee needed tio ciorrect the
mvstakes and the less cionfusvion and vrrvtation wvll ee spread.
- Qualvtty vncreases dependaevlvtty.
Speedn mvnvmvavng the tme eetween custiomers requestng prioducts ior serivces and thevr
recevivng them. Speed vnsvde the ioperationn
, - Speed reduces vnientiorvesn the lionger vtems take tio mioie thriough a priocess,i the miore
tme thety wvll ee wavtng and the hvgher vnientiorty wvll ee.
- Speed reduces rvsksn the further ahead ciompanves fiorecast,i the miore lvkelty thety are tio
get vt wriong. The faster the thrioughput tme iof a priocess,i the later fiorecastng can ee
left.
Dependaevlvttyn keep the delvierty priomvses tyiou haie made. Dependaevlvtty vnsvde the
iorganvaationn
- Dependaevlvtty saies tme.
- Dependaevlvtty saies mionety.
- Dependaevlvtty gvies staevlvttyn vf eiertythvng vn an ioperation vs alwatys perfectlty
dependaele,i a leiel iof trust wvll haie euvlt up eetween the dvferent parts iof the
ioperation.
Flexvevlvttyn eevng aele tio change far eniough and fast eniough tio meet custiomer requvrements.
Fiour ttypes iof requvrementn
- Prioduct/serivce fexvevlvttyn vntrioduce new ior miodvfed prioducts and serivces.
- Mvx fexvevlvttyn prioduce a wvde range ior mvx iof prioducts and serivces.
- Violume fexvevlvttyn change the leiel iof ioutput ior activtty tio prioduce dvferent quanttes
ior iiolumes iof prioducts and serivces ioier tme.
- Delvierty fexvevlvttyn change the tmvng iof the delvierty iof the serivces ior prioducts.
Mass custiomvaationn deieliop fexvevlvtty vn such a waty that prioducts and serivces are
custiomvaed fior each vndvivdual custiomer,i eut prioduce them vn a hvgh iiolume,i mass
prioduction manner whvch keeps ciosts diown.
Agvlvttyn respiondvng tio market requvrements ety prioducvng new and exvstng prioducts and
serivces fast and fexvelty.
Flexvevlvtty vnsvde the iorganvaationn
- Flexvevlvtty speeds up respionse.
- Flexvevlvtty saies tme.
- Flexvevlvtty mavntavns dependaevlvtty.
Ciostn prioduce gioiods and serivces at a ciost whvch enaeles them tio ee prvced apprioprvatelty fior
the market whvle stll alliowvng fior a return tio the iorganvaation.
Prioductivtty= the ratio iof what vs prioduced ety an ioperation vts ioutput) tio what vs requvred tio
prioduce vt vts vnput)= ioutput / vnput.
Svngle-factior measure iof prioductivtty= ioutput / ione vnput.
Mult-factior prioductivtty= ioutput / all vnputs.
Each iof the iarvious perfiormance ioejecties has seieral vnternal efects,i eut all iof them afect
ciost,i sio ione vmpiortant waty tio vmprioie ciost perfiormance vs tio vmprioie the perfiormance iof
the iother ioperations ioejecties.
Perfiormance measurementn the priocess iof quantftyvng action,i where measurement means the
priocess iof quantfcation and the perfiormance iof the ioperation vs assumed tio dervie friom actions
taken ety vts management. It cioncerns three genervc vssuesn
What factiors tio vnclude as perfiormance measures?
Siometmes the measures are aggregated vntio ciompiosvte measures that ciomevne seieral
measures,i these measures help tio present a pvcture iof the ioierall perfiormance iof a eusvness.
All iof the factiors at each leiel can ee erioken diown vntio miore detavled measures.
Whvch are the miost vmpiortant perfiormance measures?
A ciompriomvse vs ioften reached ety makvng sure that there vs a clear lvnk eetween the
ioperation’s ioierall strategty,i the kety perfiormance vndvcatiors PPIs) that refect strategvc
ioejecties,i and the eundle iof detavled measures that are used tio fesh iout each kety
perfiormance vndvcatior.
What detavled measures tio use?
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