5.1 The Role Of Operations Management

Define Operations Management
Operations Management deals with the use of inputs to provide outputs in the form of goods and services.
What are the inputs?
What are Operations Management concerned with?
1. Efficiency of production- keeping costs as low as possible will help to give competitive advantage.
2. Quality- the good/service must be suitable for the purpose intended.
3. Flexibility and innovation- the need to develop and adapt to new processes and new products.
Why does Operations management have to have good relationship with the rest of the business?
1. Operations Manager need to ensure that the appropriate quality and number of goods is being produced for the marketing department to sell it profitably.
2. Operations Managers need to ensure that the human resources department to hire an appropriate number of qualified workers.
3. In the decisions to expand, the operations managers often need funding therefore a good relationship between the finance department should be essential.
What are some possible problems that can arise if operations management had bad relationships with other departments?
1. Operations would keep producing a product at the same output level even though it is experiencing declining sales.
2. Innovating a new product but incapable to develop it effectively due to the lack of finance.
3. Operations have a plan to increase output in a factory by introducing a third daily shift of workers but it is not communicated to the human resources department.
What is production?
Production is the making of tangible goods(ie. computers) and the provision of intangible goods( i.e. banking ).
What is the aim of the production process?
The aim is to “add value” to the inputs bought by the business so that the output can be sold at a profit.
What is sustainability?
Sustainability is the creating of balance between social, ecological and economical needs of society.
What is triple bottom line?
Triple Bottom line is suggests that the business should not only be assessed by profit made but also the measure of its impact on the environment and society.
Ecological Sustainability can be gained by
1. Reducing waste at all levels of the business
2.Using less energy and source energy from reusable resources.
3. Reducing the use of water and recycle water.
Social Sustainability can be gained by
1. Designing production processes that are both safe and healthy for employees.
2. Providing work and workplaces that allows social interaction.
3. Providing jobs in low-income countries or deprived areas.
Economic Sustainability ( $ )
1. Increasing efficiency of the production process to increase competitiveness
2.Researching and developing products that customers want to buy.