A Framework for Managing Operations: Operations Management

PLANNING

Is an activity that establishes a course of action and guides future decision-making. It involves setting objectives and determining a course of action for achieving those objectives

This stage includes clarifying the role and focus of operations in the organization’s overall strategy. It also involves product planning, facility designing and using the conversion process.

1. STRATEGIC PLANNING

2. TACTICAL PLANNING

3. OPERATIONAL PLANNING

The three main types of planning includes:

STRATEGIC PLANNING

involves analyzing competitive opportunities and threats, as well as the strengths and weaknesses of the organization, and then determining how to position the organization to compete effectively in their environment. It has a long time frame, often three years or more.

TACTICAL PLANNING

- is intermediate-range (one to three years) planning that is designed to develop relatively concrete and specific means to implement the strategic plan.

OPERATIONAL PLANNING

generally assumes the existence of organization-wide or subunit goals and objectives and specifies ways to achieve them.

Is short-range (less than a year) planning that is designed to develop specific action steps that support the strategic and tactical plans. This stage also involves product planning, facility designing and using the conversion process.

ORGANIZING, organizational chart, organizational design decisions

Is an activity that establishes a structure of tasks and authority. The structure is usually represented by an ____________ __________which provides a graphic representation of the chain of command within an organization. Decisions made about the structure of an organization are generally referred to as ____________ _____________ ____________

CONTROLLING

Are activities that assure the actual performance in accordance with planned performance. It is the process of monitoring and evaluating the performance of operational activities against established standards, identifying any deviations from the plan, and taking corrective actions to ensure that the organization achieves its desired goals and objectives; essentially, it's about ensuring operations stay on track by measuring performance and making adjustments as needed.

OPERATIONS MANAGER

play an important role in planning, organizing, and controlling different activities in a business.

BEHAVIOUR

Their goal is to create a positive work environment where employees feel motivated to do their best. Good decision-making in operations management is only possible when both managers and employees work together effectively

Operation managers are concerned with how their efforts to plan, organize, and control affect human behavior. They also want to know how the behavior of subordinates can affect management’s planning, organizing, and controlling actions.

Managers need to understand how their decisions and leadership style affect the attitudes, motivation, and performance of workers. At the same time, they also need to observe how employees' actions and behaviors can impact the company's overall operations, including planning and decision-making

MODELS

When operations managers plan, organize, and control business activities, they often face many challenges and must make important decisions. To make their work easier and more effective, they use different _____ that help them analyze situations and find the best solutions.

Operations managers use this to simplify decision-making and improve efficiency in planning, organizing, and controlling processes. These models help analyze capacity, costs, and facility management

1. AGGREGATE PLANNING MODELS

2. BREAK EVEN ANALYSIS

3. LINEAR PROGRAMMING AND COMPUTER SIMULATION

4. DECISION TREE ANALYSIS

5. SIMPLE MEDIAN MODEL

Common models used in operations management:

AGGREGATE PLANNING MODELS

These help managers decide how to use available resources in the short term to meet demand efficiently

BREAK EVEN ANALYSIS

This helps businesses find out how much they need to sell to cover costs and start making a pro

LINEAR PROGRAMMING AND COMPUTER SIMULATION

These tools help in making decisions about how to use resources in the best way to increase productivity.

DECISION TREE ANALYSIS

– This model helps managers plan for long-term business growth, such as expanding a facility or adding new services.

SIMPLE MEDIAN MODEL

– This is used to find the best locations for setting up new facilities, such as factories, warehouses, or stores.

organizational design

Decisions made about the structure of an organization are generally referred to as _____________ ___________ decisions

1. customer service

2. resource utilization

Objectives of Operations Management

OPERATIONS MANAGEMENT

is the strategic planning and execution of business processes to ensure customer satisfaction and efficient use of resources.

CUSTOMER SERVICE

– Delivering products and services that meet customer expectations in quality, cost, and timing.

RESOURCE UTILIZATION

Maximizing efficiency by reducing waste and ensuring resources are used effectively. Balancing these two objectives is key to long-term business success

1. SPECIFICATION

2. COST

3. TIMING

The primary goal of operations management is to ensure customer satisfaction through:

1. MANUFACTURE

2. TRANSPORT

3. SUPPLY

4. SERVICE

Aspects of Customer Service in Operations Management

Resource utilization

Focuses on maximizing productivity and minimizing waste while maintaining customer service.

1. MINIMIZING WASTE

2. OPTIMIZING CAPACITY

3. REDUCING COSTS

Key Aspects of Resource Utilization

1. TIME UTILIZATION

2. SPACE UTILIZATION

3. LEVEL OF ACTIVITY

Ways to Measure Resource Utilization

NEGATIVELY

While customer service and resource utilization are both crucial, overemphasizing one can ________ impact the other

1. High customer expectations vs. limited resources.

2. Fluctuations in demand affecting supply chains.

3. Balancing cost control with maintaining product/service quality.

Challenges in Operations Management

1. setting goals

2. developing strategies

3. outlining actions to achieve goals

planning core functions