What is operations management- week 1

What is operations management?

"Operations management is the activity of managing the resources that create and deliver services and products". - Slack and Brandon-Jones 2019 "Operations constitutes the essence of why an organisation exists. How well this provisioning task is completed will directly impact customers' perceptions of an organisation in terms of its reputation and repeat sales"- Hill and Hill 2012.

Henry Ford and the assembly line...

-In 1913, Henry Ford introduced the moving assembly line into the Highland park factory. -Reduced labour content in assembly from 12.5 hours to 1.5 hours. -This required --> A standard product --> Interchangeable parts --> Placing machinery in the sequence it was used.

Taking a process perspective...

-In looking at processes, you need to consider three key aspects. --> Design- understanding different kinds of processes, their capabilities, and their strengths and weaknesses. --> Measurement- knowing how a process is performing, and the factors that affect this. --> Improvement- achieving a better performance from a process to meet customer needs.

The operations process...

-In operations management, we focus on the whole process, rather than each stage.

The Venetian shipbuilders...

-In the 15th and 16th century, the arsenal introduced an assembly line process. -Able to manufacture ships at a much faster pace than other shipyards. -Records include making 100 ships in 2 months and fitting out a ship in a couple of hours.

Process improvement...

-Subsequently there have been significant developments in process improvement --> Scientific management, through activities like time and motion studies (1910s and 1920s) --> Quality management (1950s and 1980s) --> Toyota production system (1950s) and lean thinking (1990s) --> Computerised manufacturing (1970s onwards) --> Agility and mass customisation (2000s onwards)

The industrial revolution...

-The industrial revolution from the 1750s onwards let to the development of the factory system. -Developments included --> The steam engine --> Using large scale machinery for production --> Canals and railways for transporting raw materials and finished products --> Interchangeable parts. -Mass production was born.

How do processes differ?

There are four main dimensions which differentiate processes: -Volume -Variety -Variation -Visibility.