OM
What is the essence of operation management
Operations management revolves around managing resources to create and deliver services and products within an organization
What constitutes the operations function within an organization?
The operations function is responsible for ceating and delivering services and products based on customer requests. Its one of the three core functions, alongside marketing and products/services development
why is the operations function essential within an organization?
Its crucial because its responsible for the primary reason an organization exists: creating and delivering services/products.This function fulfills customer requests, essential for generating revenue.
what are the three core functions of an organization?
Marketing, product/service development and operations- each crucial in communicating, innovating, and delivering sefrvices/products to customers
How does operations management relate to smaller organizations?
Regardless of size, all companies need efficient operations to create and deliver their services/products. Small companies face challenges like resources constrains and overlapping roles impacting decision making
Are operations limited to for profit organizations only ?
No, operations management is relevant across sectors, including npo. Managing operations involves similar decision making process regardless of the primary organizational purpose.
What's the evolving role of operations management due to changing business environments?
Operations management faces new pressures necessitating responses. This includes adapting to business pressures, as outlined in Table 1.2, forming a significant part of the new agenda for operations.
How does the 'input-transformation-output' process define operations?
Operations involve taking inputs (transformed and transforming resources) and converting them into outputs (services and products), highlighting the process's transformative nature.
What comprises transformed resources in operations?
Transformed resources are materials, information, and customers treated, converted, or transformed within the operation. This includes physical, informational, and even customer-related changes.
What are the components of transforming resources?
Transforming resources encompass facilities (buildings, equipment) and staff (people operating, maintaining, managing the operation). Both are pivotal in converting inputs into outputs
What distinguishes products from services in operations?
Products are typically tangible, while services are activities or processes. Additionally, services are often consumed or used upon delivery, unlike most products that can be stored.
Why is understanding customer needs crucial in operations management?
Operations exist to fulfill customer needs. Being aware of both current and potential customer needs is essential for effective operations management.
How are operations structured within an organization?
Operations consist of interconnected processes, acting as smaller versions of the whole operation, exchanging transformed resources.
What dual meanings does 'operations' encompass?
'Operations' refers to the function creating/delivering services/products for external customers and also represents the management of processes within any function.
How is the process perspective utilized in operations management?
The process perspective is applied at three levels: the operation itself, the supply network, and individual processes, emphasizing their interconnected nature.
What are the four characteristics differentiating operations processes?
The four Vs: volume, variety, variation in demand, and visibility, which impact costs, flexibility, and customer interaction.
How do the four Vs influence operations' costs and flexibility?
High volume, low variety, low variation, and low customer contact reduce processing costs, while their opposites increase costs.
What are the general activities operations managers engage in?
Activities include directing strategy, designing operations, planning/control of processes, and developing process performance across sectors.
What constitutes the model of operations and process management?
It combines the concept that operations and processes transform inputs into outputs with the need to manage resources in terms of direction, design, planning/control, and development/improvement.
What's the significance of 'end-to-end' business processes?
It signifies the creation of each product from start to finish within a dedicated process containing all necessary production elements.
Why is understanding the characteristics of operations processes important?
Understanding the four Vs helps determine costs, flexibility, and customer interaction within operations, influencing strategic decisions
How does the nature of operations processes impact costs and customer experiences?
Higher volume, lower variety, variation, and customer contact help keep processing costs down and vice versa, impacting customer experiences as well.
What is the process hierarchy?
All operations are part of a larger supply network which, through the individual contributions
of each operation, satisfies end customer requirements.
- All operations are made up of processes that form a network of internal customer–supplier
relationships within the operation.
- End-to-end business processes that satisfy customer needs often cut across functionally
based processes
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