Operations management

Transcription

1 management IPAG 2A 2011 Lectures & Tutorials : Marco Nowinski Source material taken from the book Management by Nigel Slack, Stuart Chambers, Robert Johnston, 6th edition, 2010 management defined Slack et al. s model of operations management management is the activity of managing the which are devoted to the production and delivery of products and services. Transformed Materials Information Customers Input Transforming Design strategy management Planning and control strategy Improvement Operation s performance Output products and services Customers Facilities Staff

2 management at IKEA They are all operations Design elegant products which can be flat-packed efficiently Design a store layout which gives smooth and effective flow Ensure that the jobs of all staff encourage their contribution to business success Back office operation in a bank Kitchen unit manufacturing operation Site stores of an appropriate size in the most effective locations Continually examine and improve operations practice Take-out / restaurant operation Maintain cleanliness and safety of storage area Arrange for fast replenishment of products Monitor and enhance quality of service to customers Interal relationships between operations and other s Accounting and finance Human Engineering/ technical Analysis of new technology options Understanding of process technology Provision of relevant data Financial analysis for performance and decisions Understanding of human resource Recruitment development and training Understanding of the capabilities and constraints of the operations process Information technology (IT) New product and service ideas Understanding of the capabilities and constraints of the operations process Market requirements Understanding Provision of systems for of infrastructural design, planning and and system control, and improvement Product/service development Marketing Nutritional mechanical and aesthetic design of the sandwiches and snacks Design, location and management of stores and instore and the network that supplies them

3 management is changing The business environment is changing, for example: Increased cost-based competition er quality expectations Demands for better service More choice and variety Rapidly developing technologies Frequent new product/service introduction Increased ethical sensitivity Environmental impacts are more transparent More legal regulation Greater security awareness Prompting operations responses, for example: Globalization of operations networking Information-based technologies Internet-based integration of operations activities Supply chain management Customer relationship management Flexible working patterns Mass customization Fast time-to-market methods Lean process design Environmentally sensitive design Supplier partnership and development Failure analysis Business recovery planning Transformed Materials Information Customers Transforming Facilities Staff input and outputs Input Transformation process Output products and services Customers Outputs are products and services that add value for customers Most operations produce products and services can be analyzed at three levels Crude oil production Aluminium smelting TOTAL Pure products Outputs that are exclusively tangible Specialist machine tool production Restaurant Mc Donalds Flow between Information systems provider IKEA Management consultancy Psychotherapy clinic Luxury Hotel Pure services Outputs that are exclusively intangible Flow between The level of the process

4 can be analyzed at three levels (Continued) Differences within sectors are often greater than the differences between sectors Flow between management is concerned with the flow of transformed between operations,, where External operations interact with internal to form the external supply network An account management centre at a large retail bank Financial services Furniture manufacturing Mass production of kitchen units Financial analyst advising a client at an investment bank Craft production of reproduction antique furniture Flow between Processes form an internal supply network and become each others customers and suppliers Value-for-money hotel Hotels Lobby of an international luxury hotel A typology of operations and A typology of operations and (Continued) The 4 Vs The implications of high and low in operations and Variation in demand repetition Each staff member performs more of each task Less systemization unit costs repeatability Specialization Capital intensive unit costs

5 A typology of operations and (Continued) The implications of high and low in operations and A typology of operations and (Continued) The implications of high and low Variation in operations and Flexible Complex Match customer unit costs Well defined Routine Standardized Regular unit costs Changing capacity Anticipation Flexibility In touch with demand unit costs Variation in demand Stable Routine Predictable utilization unit costs A typology of operations and (Continued) A 4 Vs profile of two operations The implications of high and low in operations and Variation Short waiting tolerance Satisfaction governed by customer perception Customer contact skills needed Received variety is high unit costs Time lag between production and consumption Standardization contact skills staff utilization Centralization unit costs Luxury Hotel Formule 1 Hotel Important to understand how different operations are positioned on the 4 Vs. Is their position where they want to be? Do they understand the strategic implications?