Understanding Operations Management: Assignment 1
Understanding Operations Management: Assignment 1
Understanding Operations Management: Assignment 1
❖ Automotive Industry:
Manufacturing: Producing cars involves stamping, welding, painting, and
assembling parts.
Service: Car dealerships offer financing, maintenance, and repair services.
Hybrid: Electric vehicle companies like Tesla provide both cars and software
updates/services.
❖ Healthcare Industry:
Service: Hospitals provide patient care through diagnosis, treatment, and
recovery processes.
Hybrid: Pharmaceutical companies manufacture drugs (manufacturing) and
provide drug information and consultation (service).
❖ Hospitality Industry:
Service: Hotels offer accommodation, dining, and concierge services.
Hybrid: Resorts may provide physical amenities (manufacturing aspect) and
leisure activities/services (service aspect).
❖ Retail Industry:
Examples:
Consumer Electronics: Apple’s Marketing gathers customer feedback for OM to
develop new features and ensure manufacturing meets demand during launches.
Retail: Fashion retailers use marketing data to inform OM on trends, ensuring timely
production and delivery.
Examples:
Manufacturing: Car manufacturers have Finance evaluate the cost-benefit of new
machinery proposed by OM.
Healthcare: Hospitals optimise staff schedules and reduce supply waste with joint
OM and Finance efforts.
Examples:
Manufacturing: OM in plants identifies skill needs; HR recruits and trains machinists.
IT Services: OM defines skill requirements; HR provides training or recruits skilled
employees.
4.Link Between Operations and Finance
•Explain how Operations Management impacts financial Performance.
Cost Efficiency:
OM optimises processes to save money and increase profits by reducing waste and
improving productivity.
Revenue Enhancement:
Good OM ensures timely delivery of quality products, boosting customer satisfaction
and sales.
Asset Utilisation:
OM maximises the use of resources like machinery and labour, increasing returns on
investments and reducing inventory costs.
Cost Management:
Keeps track of and controls expenses to ensure they stay within budget and support
financial goals.
Budgeting:
Creates a financial plan for operations, setting spending limits and ensuring funds
are allocated wisely.
Financial Analysis:
Evaluates operational performance to find and fix inefficiencies, guiding decisions on
improvements and investments.
These practices help Operations Management improve efficiency, cut costs, and
support the financial health of the organisation.
6. Conclusion
•Summarise the key points discussed in the assignment.
➢ Operations Management (OM) involves designing, executing, and controlling
operations to convert resources into goods and services efficiently, aiming to
balance costs with revenues to maximise profits.
➢ OM interfaces with marketing, finance, and human resources to align product
development with market demands, manage budgets, and ensure skilled
staffing. It impacts financial performance by optimising costs, enhancing
revenue, and maximising asset utilisation.
➢ Effective OM provides competitive advantages through cost reduction, quality
improvement, speed, flexibility, and innovation, with companies like
McDonald's, Zara, and Starbucks leveraging OM for consistent quality, rapid
production, and excellent customer service.
➢ Efficiency Improvement
➢ Cost Control
➢ Quality Assurance
➢ Supply Chain Management
➢ Competitive Advantage
➢ Risk Management
➢ Data-Driven Decisions
➢ Sustainability