Module 1: Operations Management in Context

Operations Management

•Activity of managing the resources which produce and deliver products and services

Operations Management

•Concerned with managing process

Operations Management

•An activity that creates and deliver products to meet the needs of the organization’s customers

OPERATIONS FUNCTION

is the part of the organization that is responsible for operations management.

Every organization has an operations function because every organization produces some type of products and/or services

OPERATIONS MANAGERS

are the people who have responsibility for managing some, or all, of the resources which compose the operations function.

1. The Marketing Function

2. The Product/Service Development Function

3. The Operations Function

Operations in the Organization

Three Core Function:

The Marketing Function

– responsible for communicating the organization’s products and services

The Product/Service Development Function

responsible for creating new and modified products and services

The Operations Function

– responsible for fulfilling customer requests for services

Support Function

1. The Accounting and Finance function

2. The Human Resource Function

– enables the core functions to operate effectively.

The Accounting and Finance function

– provides economic decision making and manages the financial resources

The Human Resource Function

– recruits and develops the organization’s staff as well as looking after their welfare

‘Operations’ as a function

‘Operations’ as an activity

It also means that we must distinguish between two meanings of ‘operations’:

‘Operations’ as a function

meaning the part of the organization which produces the products and services for the organization’s external customers;

‘Operations’ as an activity

meaning the management of the processes within any of the organization’s functions.

TRAVEL INDUSTRY

Importance of Operations Management

helps in marshalling that attractions resources to provide a satisfactory services for the customers

AIRLINE INDUSTRY

Importance of Operations Management

– facilitates the execution of airline schedules, movement of passengers, baggage and cargo

RESTAURANT INDUSTRY

Importance of Operations Management

– ensures safety of food, cleanliness, customer service, equipment, products, marketing and human resource

ACCOMMODATION INSDUSTRY

Importance of Operations Management

– facilitates smooth and proper front desk services, housekeeping, maintenance, accounting, marketing, sales and kitchen

CRUISE INDUSTRY

Importance of Operations Management

– deals with effective and efficient management of accommodation on board, public areas, marketing, customer service, food and drinks, facilities and health and safety on board

1. Understanding the operation’s strategic performance objectives

2. Developing an operations strategy for the organization

3. Designing the operation’s products, services and

processes

4. Planning and controlling the operation

5. Improving the performance of operation

6. The social responsibilities of operations management

Activities of Operations Management

•The volume of their output;

•The variety of their output;

•The variation in the demand for their output;

•The degree of visibility which customers have of the production of their output

Characteristics of Operations Process