Operations Management Main Concepts
- Production This is the actual process of transforming material inputs (raw materials) and intangible inputs (expertise, plans) into the finished product for the consumer. ...
- Suppliers Businesses will need to balance a number of factors when deciding on the suppliers of the raw materials or components that they need. ...
- Economies and Diseconomies of Scale ...
- Industry Sectors ...
- Business Expansion ...
What are the two main goals of Operations Management?
- Finance- Finance plays a main function in operations management. ...
- Operation – The function of operation management is basically concerned with planning, organizing, directing and controlling of daily routine operations of an organization. ...
- Strategy – The strategy formulation is also the main function of operation management. ...
What are aspects of Operations Management?
Operations management is in regard to all operations within the organization related activities include managing purchases, inventory control, quality control, storage, logistics and evaluations. A great deal of focus is on efficiency and effectiveness of processes.
What are the types of operations in operation's management?
There are three major groups of activities performed by operations management, deriving from its planning or designing, organizing, and supervising functions. All activities involve considering assets, costs, and human resources, and are preceded by a thorough analysis of processes.
What exactly is operations management?
- costs with revenue to achieve the highest
- Operations management is the
- administration of business practices to
- create the highest level of efficiency
- converting materials and labor into goods
What are the basic concepts of operations management?
Operations management refers to the business processes involved with planning, organising and monitoring the production process. It's concerned with converting raw materials and labour into goods and services in the most efficient manner possible – in short, it aims to optimise the production and delivery process.
What is the concept and importance of operations management?
Importance of Operations Management Operations management is essential for organizations to manage their daily activities seamlessly. Operations management controls all the processes and handles issues including design, operation, maintenance, and improvement of the systems.
What is concept of operations in business?
Business operations is a term used to define a broad range of activities. In essence, it refers to everything a firm does day-to-day to keep running and making money. Those activities, therefore, can differ hugely from one company to the next.
What are the modern operation management concepts?
Modern operations management is comprised of four theories: business process redesign (BPR), six sigma, lean manufacturing, and reconfigurable manufacturing systems.
What are the 4 types of operations management?
Operations management includes three levels: strategic, tactical, and operational.
What are the 7 main function of operational management?
We can distinguish seven main functions of operation management in the industrial enterprise: planning, scheduling, purchasing, controlling, quality control and inventory control.
What are examples of operations management?
Examples of managing business operations That can include overseeing administrative costs, managing claims and billing, and legal compliance.
What are the types of operations?
Types of operation There are two common types of operations: unary and binary. Unary operations involve only one value, such as negation and trigonometric functions. Binary operations, on the other hand, take two values, and include addition, subtraction, multiplication, division, and exponentiation.
What are 3 types of business operations?
There are three main types of business activities: operating, investing, and financing. The cash flows used and created by each of these activities are listed in the cash flow statement.
What are the 10 operations management decisions?
10 Strategic Decision Areas of Operations ManagementDesign of Goods and Services. ... Quality Management. ... Process and Capacity Design. ... Location Strategy. ... Layout Design and Strategy. ... Human Resources and Job Design. ... Supply Chain Management. ... Inventory Management.More items...
Why operation management is important in all types of organization?
The goal of operations management is to help maximize efficiency within an organization, increase the organization's productivity, increase profits while reducing costs, and ensure the production and delivery of high-quality products or services that suit consumers' needs.
What is the importance of operation management in Hospitality industry?
Operations management involves utilizing given resources as efficiently as possible to deliver services to customers and meet business goals. Developing efficient business operations requires a hospitality organization to design efficient service environments, as part of its mission.
What are the three important decisions of Operations Manager?
A company's business objectives may include: prioritizing customer satisfaction; controlling costs; improving production systems. The operations managers job is to find ways (strategies) to meet these objectives.
What is an important aspect of operations management quizlet?
Which of the following is an important part of operations management? Operations management transforms resources into goods and services, such as a landscape company that utilizes equipment, labor, and materials to develop a landscape. Managing this operation may also involve maintenance services.
What are the responsibilities of operations management?
Operations management is a field of business that involves managing the operations of a business to ensure efficiency in the execution of projects. It means that the individual in charge of the department will be required to perform various strategic functions. Some of the functions include:
What are the functions of an operations manager?
Some of the functions performed by an operations manager include supply chain management, product design, forecasting, quality control, and delivery management. An operations manager must have excellent organizational, coordination, and people skills and must be tech-savvy.
What is the role of an operations manager in delivery management?
4. Delivery Management. The operations manager is in charge of delivery management. The manager ensures that the goods are delivered to the consumer in a timely manner.
Why do operations managers need to have an affinity for technology?
In this age of rapidly advancing technologies, an operations manager needs to have an affinity for technology in order to be in a position to design processes that are both efficient and tech-compliant. Modern organizations are becoming increasingly tech-dependent in order to gain a competitive advantage in the market.
How can an operations manager improve production efficiency?
Good organization skills can increase production efficiency and help the manager save time. 2. Coordination. An operations manager needs to have good coordination by knowing how to integrate resources, activities, and time to ensure proper use of the resources toward the achievement of the organization’s goals.
What does an operations manager need to know?
Since workplaces are made up of people from diverse cultures, the operations manager needs to show tolerance and understanding to other people. Also, the manager should be able to resolve conflicts and mediate disputes between employees and members of the senior staff. 4. Tech-savvy.
What is the role of an operations manager in the supply chain?
The operations manager manages the supply chain process by maintaining control of inventory management, the production process, distribution, sales, and sourcing of suppliers to supply required goods at reasonable prices.
WHAT IS OPERATIONS MANAGEMENT?
Operations management involves planning, organizing, and supervising processes, and make necessary improvements for higher profitability. The adjustments in the everyday operations have to support the company’s strategic goals, so they are preceded by deep analysis and measurement of the current processes.
Why do operations managers need people skills?
People skills. Flaws in the interactions with employees or member of senior management can seriously harm productivity, so an operation manager has to have people skills to properly navigate the fine lines with their colleagues.
What are organizational abilities?
Organizational abilities. Organizing processes in an organization requires a set of skills from planning and prioritizing through execution to monitoring. These abilities together help the manager achieve productivity and efficiency.
What is the idea of focusing on the delivery?
They are both embracing the idea of focusing on the delivery: supporting the organization to deliver better results, by an optimized input of materials, equipment, technology, and human resources.
Why is it important to know the basics of operations?
Since all companies have operations, i.e. certain ways to create an optimal output from various input sources, whether it be manufacturing physical products or offering services, it is good to be familiar with the basics of managing these operations. Especially as mastering these basics can directly support your business goals.
Who wrote the 16 principles of operations management?
The 16 principles of operations management by Dr. Richard Schonberger. Dr. Richard J. Schonberger, renowned researcher of American manufacturing and author of the book “World Class Manufacturing: The Next Decade,” has become widely known in operations management by his set of 16 customer-focused principles.
When should a business plan be in focus?
Plans should always support the business objectives: they are in focus when considering the costs and finding the best matching quality and capacity, or calculating inventory and human labor needs.
What is the function of operations management?
A critical function of operations management relates to the management of inventory through the supply chain. To be an effective operations management professional, one must be able to understand the processes that are essential to what a company does and get them to flow and work together seamlessly. The coordination involved in setting up business processes in an efficient way requires a solid understanding of logistics.
What Is Operations Management (OM)?
Operations management (OM) is the administration of business practices to create the highest level of efficiency possible within an organization. It is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization. Operations management teams attempt to balance costs with revenue to achieve the highest net operating profit possible.
What Are Some Systems of OM?
Modern operations management revolves around four theories: business process redesign ( BPR), reconfigurable manufacturing systems, Six Sigma, and lean manufacturing. BPR is focused on analyzing and designing workflow and business processes within a company. The goal of BPR is to help companies dramatically restructure the organization by designing the business process from the ground up. Reconfigurable manufacturing systems are designed to incorporate accelerated change in structure, hardware, and software components.
What is OM in business?
Operations management (OM) is the administration of business practices to create the highest level of efficiency possible within an organization. It is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization. Operations management teams attempt to balance costs ...
What is the role of operations manager?
Operations managers acquire, develop, and deliver goods to clients based on client needs and the abilities of the company. Operations management handles various strategic issues, including determining the size of manufacturing plants and project management methods and implementing the structure of information technology networks.
What is BPR in operations?
Modern operations management revolves around four theories: business process redesign (BPR), reconfigurable manufacturing systems, Six Sigma, and lean manufacturing. BPR is focused on analyzing and designing workflow and business processes within a company. The goal of BPR is to help companies dramatically restructure the organization by designing the business process from the ground up. Reconfigurable manufacturing systems are designed to incorporate accelerated change in structure, hardware, and software components.
What are the key concepts for operations managers?
Four of these concepts are: Customer Care Kaizen Just-in-Time Total Quality Management
What is the main use of operations management?
The main use of operations management is the management of the process that converts inputs into outputs. Every organisation has an operational function, because every organisation produces a good or service for its consumers.
What is kaizan in operations?
In relation to the concept of Kaizan, it is up to the operations manager to guide their employees through the process. There is no set group through which Kaizan can be initiated, it can be through the individual, a small group or a large group. Through this concept of Kaizan, the process can generate in organisations Total Quality Management and helps free up the efforts through improvements in productivity through the organisation’s employees. Total Quality Management as part of the operations management process is important in conjunction with the other three concepts. Bartol et al (1998: p. 544) defines the process as ‘A management system that is an integral part of an organisation’s strategy and is aimed at continually improving product and service quality so as to achieve high levels of customer satisfaction and build strong customer loyalty.’
What is TQM management?
The management philosophy of Total Quality Management (TQM), according to Slack (1999 p.224) embraces ‘all activities through which the needs and expectations of the customer and the and the community, and the objectives of the organisation are satisfied in the most efficient and cost effective way by maximising the potential of all employees in a continuing drive for improvement.’
Why is it important to understand the needs of operations managers?
It is important that the operations manager understand the needs for these concepts and how they affect the overall success of the business and how both customer loyalty and employee morale are important to the direction of the organisation for future planning.
What is total quality management?
Total Quality Management places emphasis on the planning and organisation features which are integral to the quality improvement process. There is a need for a long term approach for Total Quality Management which needs to be integrated with the other strategies such as information technology, operations and human resources, organisational business plans etc, in order for the business to compete within the environment. For the Total Quality Management process to be successful, effective use of the quality systems and procedures are imperative to the running of the system. Total Quality Management has become a particularly important development and the effects of this process are likely to remain in good organisations. This concept is the realisation that poor quality can cost the organisation in terms of cash and loss of the future market share, whereas excellent quality can offer the organisation a definite competitive advantage.
What are the four concepts of customer care?
In order to understand the four concepts of customer care, kaizen, just-in-time and total quality management , there is a need to understand operations management and what this entails in the relationship between the four concepts and operations management. It is vital to the task to understand the meaning of each of the concepts in relation to operations management as well as to the business in which it is situated.
What is the purpose of chapter 1 of Operations Management?
Chapter 1: Introduction to Operations Management Overview This chapter provides a definition of operations management. The role and importance of operations in an organization are described, along with operations decisions that are made . The differences between manufacturing and services are described. The history and current trends of operations management are discussed, including the impact of information systems. Finally, the interaction between operations and other business functions
What is the role of operations in an organization?
The role and importance of operations in an organization are described, along with operations decisions that are made. The differences between manufacturing and services are described. The history and current trends of operations management are discussed, including the impact of information systems. Finally, the interaction between operations and ...
What is a concept of operations?
A concept of operations (abbreviated CONOPS, CONOPs, or ConOps) is a document describing the characteristics of a proposed system from the viewpoint of an individual who will use that system.
What is a CONOPS document?
In general, a CONOPS will include the following: Statement of the goals and objectives of the system. Strategies, tactics, policies, and constraints affecting the system.
What is a CONOPS?
CONOPS is used to communicate the quantitative and qualitative system characteristics to all stakeholders. CONOPS are widely used in the military, governmental services and other fields. A CONOPS generally evolves from a concept and is a description of how a set of capabilities may be employed to achieve desired objectives or end state.
What is CONOPS standard?
A CONOPS Standard is available to guide the development of a CONOPS document. The Institute of Electrical and Electronics Engineers (IEEE) Standard is structured around information systems, but the standard may be applied to other complex systems as well.
