Order winners and order qualifiers ppt

Managing Operations

Alex Hill and Terry Hill

Learning objectives

Explain ROLE of operations management in an organisation
Appreciate the dimensions that make up the operations management TASK
Identify where the operations management FUNCTION fits within an organisation
Illustrate the crucial role of operations management in organiational SUCCESS
Lecture outline

INTRODUCTION
What operations management DO?
Variations in the operations management ROLE
SERVICES vs MANUFACTURING
Critical REFLECTIONS
SUMMARY
What does Operations Management do?

Manages PEOPLE, MATERIALS, RESOURCES and DELIVERY SYSTEMS

To deliver SERVICES and PRODUCTS

that have been sold to CUSTOMERS

> KEY IDEA
Operations delivers the SERVICES and PRODUCTS that have been sold to CUSTOMERS
> KEY IDEA
Operations delivers services and products to customers by MANAGING the PEOPLE, MATERIALS, RESOURCES and DELIVERY SYSTEMS involved
What does Operations Management do?

How operations management fits into an organisation

ORGANISATIONS NEED TO

SELL services or products to customers

DESIGN services or products

PURCHASE materials and/or services

DELIVER the services or products to meet customer needs

ACCOUNT for the cash or credit transactions involved in the above

What does Operations Management do?

How operations management fits into an organisation

OPERATIONS IS RESPONSIBLE FOR

SELLING services or products to customers

DESIGNING services or products

PURCHASING materials and/or services

DELIVERING the services or products to meet customer needs

ACCOUNTING for the cash or credit transactions involved in the above

What does Operations Management do?

How operations management fits into an organisation

What does Operations Management do?

To deliver SERVICES and PRODUCTS

that have been sold to CUSTOMERS

Manages PEOPLE, MATERIALS, RESOURCES and DELIVERY SYSTEMS

The role of operations management

What does Operations Management do?

The role of operations management

DAY-TO-DAY role

STRATEGIC role

CONTENT

INTERNAL role

EXTERNAL role

STYLE

> KEY IDEA
DAY-TO-DAY role of operations include: Managing within BUDGETS SCHEDULING SERVING customers Meeting OUTPUT targets Communicating with other FUNCTIONS
> KEY IDEA
STRATEGIC role of operations include: Supporting market ORDER-WINNERS and QUALIFIERS Making company COMPETITIVE
What does Operations Management do?

The role of operations management

What does Operations Management do?

MANAGE

The role of operations management

Large COST centre

PEOPLE

TECHNOLOGY

SHORT and LONG term

Links THINKING and DOING ends of the business

> KEY IDEA
Managers need to THINK and WORK in: SHORT-TERM LONG-TERM
What does Operations Management do?

The role of operations management

> KEY IDEA
Operations: CONTRIBUTES to gaining FIRST sale PROCURES SECOND sale
What does Operations Management do?

Inputs and outputs

What does Operations Management do?

Inputs and outputs

Variations in the operations management role

Variations in complexity

DEPENDING ON

SIZE of organisation

Service or product VOLUMES

RANGE of services or products sold

TECHNOLOGY required to deliver them

Number of operations IN-HOUSE

What is being PROCESSED

> KEY IDEA
Operations may PROCESS: CUSTOMERS CUSTOMER SURROGATES INFORMATION and/or PRODUCTS
Variations in the operations management role

Variations in complexity

Variations in the operations management role

Variations in output - services versus products

> KEY IDEA
The operations OUTPUT can be: SERVICES (intangible) and/or PRODUCTS (tangible)
Variations in the operations management role

Variations in output - services versus products

Variations in the operations management role

Variations in output - services versus products

DEPENDING ON

Nature of the OFFERING

Level of CUSTOMER involvement

Operations CAPACITY

ORGANISATIONAL arrangements

QUALITY control

COMPETITIVE environment

> KEY IDEA
SERVICES are CONSUMED as they’re provided whereas most PRODUCTS can be made in advance and STORED
Operations manager’s ROLE is both:
Demanding, challenging, absorbing and satisfying; and
Frustrating and complex
DAY-TO-DAY task requires physical effort
Difficult to BALANCE day-to-day and strategic role
Good management of operations is key to an organisation’s SUCCESS
Critical reflections

Critical reflections

Summary

Different SECTORS
Services vs Manufacturing
TASK of operations manager is the same
Different focus
Operations TRANSFORMS
Inputs into outputs that are sold to customers
Critical to overall SUCCESS of an organisation
Manages 60-70% of people, assets and costs
Pull out points above through discussion…

Make MONEY

Produce GOOD FOOD