Operation Management Lecture 1: Operations Management
operations management physicians management consultant advertising agency All organisations do have an "operations" functions
provide products and services
Operations Management
the activity of managing the resources with appropriate strategies which are devoted to the production and delivery of products and/or services
transforming resources: 5 M's (managers as well, internetal stakeholders) transformed resources: materials
transformation process is part of operations
Food Industry
we don't need to write explititly about information or energy because it is always embedded in our machine and equipment. Information is embedded in regard in the know-how to run the machine
'Input-Transformation-Output' process/model
Materials (and information) ARE TRANSFORMED INTO (Transformation) Finished Products and/or services Operations managers' jobs is to manage the inputs, transformation processes and output(s) Inputs (transforming resources, transformed resources) ------> Transformation process -------> Outputs (products, services)
transforming resources= those that are used to perform the transformation process (in service sectors, information transformed from one state to another) Transformed resources = those that are transformed in some way by the operation to produce the goods and/or services (i.e. outputs)
Operations Management cycle: 4 areas
What is operations Management?
5 M's -Man (power) -Material -Machine -Method -Money (or capital) a set of rules which we can optimise certain resources.. utilising all of these resources appropriately to produce a product.. Manufacturing a men. Got a number of parts that make the pen. In order to manufacture, we need materials that are available and a machine to transform it into the finished product. The machine needs to be automated by a person or it may be fully automated. It needs man power even for automatic people someone needs to put on the machine and we need someone schedule the production, to handle the raw materials. (energy is embedded within machine) we need to know the know-how the method of how to run the machines..(method, information) We need Capital to produce any product we need these 5 M's man power = conjuiled enegery within a person consultants solve problems for other industries man power in the service industry.. no tangible product.. things that u can touch and intangible or services like a money transfer from one acc to another, this is intangible products and manufacturing service industry.. banks 5 mins need to be optimised.. make use of optimisation of resources through appropriate strategy to come with a good service or poduct.
