OPERATIONS MANAGEMENT

OPERATIONS MANAGEMENT – provides a systematic framework to analyse and develop the

operations through which a firm produces and delivers its primary goods and services
OPERATIONS – processes by which people, capital, and material (inputs) are combined to produce
the services and goods we consume (outputs)
PROCESS – organised group of related tasks and activities that work together to transform inputs in
outputs that create value for customers
Organisational architecture - ???
FUNCTION – parts of and organisation, which contains and supervise groups of operations
performing similar tasks
COMPETITIVE FACTORS - different customer value differ features in the products or services they
demand
 OPERATIONS MANAGEMENT

Transformation process

Inputs:
 Transformed resources:
o Materials
o Information
o Customers
 Transforming resources
o Facilities
o Staff

And then transformation process takes place and output (goods and services)
is created

Relationship between operations and functions:

 Functions include more operations
 Operations are concerned with specific activities (e.g. production of a
specific good)
 Functions are concerned with generic activities (e.g. production)

Performance objectives:
 Cost
 Speed
 Quality
 Flexibility
 Dependability

Trade-offs for performance objectives:

 Organisations might not have the capability to maximise all
performance objectives at the same time
 Organisations may not need to do so
 The ranking of performance objectives varies from an organisation to
another and across functions, operations and operative levels within
the same organisation
 The ranking of performance objectives changes over time
 Trade-offs or lean production and flexible manufacturing