Operations Management Notes

• Operations management: managing inputs into outputs.

Operational Management

• Inputs \rightarrow Process \rightarrow Outputs

• Consider technology, ethics, environment, market, competition.

Setting Operational Objectives

• Objectives: Costs, Quality, Speed, Flexibility, Environment, Added value.

Transformation Process

• Input (Resources) \rightarrow Operations \rightarrow Output (Products)

Operations Management Definition

• Transforming resources into goods (tangible) & services (intangible).

Operations Management Decisions

• Output level, product range, service level, flexibility, production method, distribution, outsourcing.

Operations Decision-Making Process

• Objectives \rightarrow Analyze data \rightarrow Decisions \rightarrow Implement \rightarrow Review

Operations Function

• Performance should be measured.

Value of Setting Operational Objectives

• Objectives interlinked & align with strategy.

• Improve efficiency, potentially through benchmarking.

Operational Objectives (Examples)

• Costs, Speed, Environment, Flexibility, Quality, Added value.