Operations Management Notes Week 1 - Lecture; Intro to OM 'How organisations create and deliver products and services' - Slack and Brandon-Jones (2019) OM - Activity of managing the resources devoted to production and delivery of goods and services, the business function responsible for planning, coordinating, and controlling the resources needed to produce a company's products and services OM is essential to ensure high-quality, low cost, and low environmental impact What are Operations? - Operations is task of taking inputs in form of resources and turning them into outputs in the form of products and services, the conversion process is what operations is and comprises the basic workflow in an organisation. Hill (1993) It is also the physical processes where companies convert raw materials into products and then distribute them, it is a vital part of the business process [alongside innovation etc.] and ranks highly in responsibilities of management. Financial Times (1997) Why is OM important? - Operations is all around us, any business that creates, does so with resources and therefore has operations and requires OM, in business organisations, OM is important to effectively manage, control and supervise, goods, services, and people, investing into OM will make the processes more and more efficient. A Simple Transformation Model Inputs Outputs Energy Materials Skills Goods Services Knowledge Transformation Process flow Why is OM important now? - In the face of events like the Ukraine crisis, rising gas prices, OM must step in to reduce costs in the process of delivering goods and services, as well as circumvent any sort of supply chain issues that might occur Examples of OM in organisations - Automobile assembly; OM uses machines to efficiently assemble products instead of doing it all by hand, machines also run a lot cheaper and faster. GP; By adding in another person, OM uses their knowledge to effectively diagnose conditions and then refer patients to the appropriate specialist. Disaster Relief; OM uses people to effectively address the current and potential needs of the people in distress OM in practice - When you order a burger from a restaurant: Operations include things just like washing the veg, taking orders, take the raw materials (bun, patty etc.) and turns it into a burger, OM helps to do everything effectively, the location, the equipment, process of making the burger and reducing waste, serving the burger, could be changing how the burger is assembled and vegetables cut in order to reduce waste, it seeks to improve the service/product being put out. LO1 - OM describes how organisations create and deliver products and services, it's important to manage, control, and supervise goods, services, and people, OM reduces cost, ensures customer satisfaction, and good product and quality What is a process? - In OM, a process has an input, a transformation, and an output
Slack's model of Operations Management Transformed resources · Materials · Information · Customers Direct - Storing operations and processes Design - Shaping processes, products and services Operations management Develop - Improving the operation's