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5.1 Introduction To Operation Management

Operations management involves designing, controlling, and improving production processes to ensure efficiency, cost-effectiveness, and quality standards. Key responsibilities include process design, capacity planning, stock management, supply chain management, quality control, continuous improvement, and scheduling. Sustainable operations management integrates sustainability practices across all operations to minimize environmental impact and promote fair labor practices.

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10 views7 pages

5.1 Introduction To Operation Management

Operations management involves designing, controlling, and improving production processes to ensure efficiency, cost-effectiveness, and quality standards. Key responsibilities include process design, capacity planning, stock management, supply chain management, quality control, continuous improvement, and scheduling. Sustainable operations management integrates sustainability practices across all operations to minimize environmental impact and promote fair labor practices.

Uploaded by

domenica.farias
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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What is Operations Management?

●​ Operations management focuses on designing, controlling and improving the


processes used in the production of goods and services
○​ It involves overseeing the entire production process, from acquiring raw
materials to delivering the final product/service to customers​

●​ The goal of operations management is to ensure that the production process


is efficient, cost-effective and meets the desired quality standards
○​ It involves making decisions related to production planning, stock
management, resource allocation, scheduling and quality control​

●​ Operations managers are responsible for a wide range of tasks including:

​
The range of tasks for which operations management are responsible​

1. Designing and improving processes

●​ Operations managers analyse existing processes and find ways to optimise


them
○​ They may use tools and techniques such as process mapping and lean
production to identify inefficiencies and eliminate waste​
2. Capacity planning

●​ Operations managers determine the production capacity required to meet


customer demand
○​ They analyse historical data and market forecasts to ensure that the
production resources are adequate to fulfil orders in a timely manner​

3. Stock management

●​ Operations managers are responsible for managing the stock levels of raw
materials, work-in-progress and finished goods
○​ They aim to minimise costs while ensuring that enough stock is
available to meet customer demand and allow the production process
to continue without running out of resources​

4. Supply chain management

●​ Operations managers work closely with suppliers to ensure the timely delivery
of raw materials and components
○​ They establish relationships with suppliers, negotiate contracts and
monitor supplier performance to ensure a reliable supply chain​

5. Quality control

●​ Operations managers implement quality control measures to ensure that the


products/services meet the required quality standards
○​ They develop and enforce quality assurance processes, conduct
inspections and address any quality issues that arise​

6. Continuous improvement

●​ Operations managers strive for ongoing improvement in processes,


productivity and efficiency
○​ They identify opportunities for innovation, implement new technologies
or techniques and encourage a culture of continuous improvement
(Kaizen) among employees​

7. Scheduling and logistics


●​ Operations managers develop production schedules and coordinate the flow
of materials, equipment and labour to ensure smooth operations

Operations & the Production of Goods/Services


●​ Operations management does not only focus on the production of tangible
goods/services in the secondary sector
○​ It is equally applicable in the primary, tertiary and quaternary sectors ​

●​ The input-output model is a simple explanation of the operations process​

The input-output model​

Examples of the Input-Output Model in Different Sectors

Sector & Inputs Process Outputs


Example

Primary ●​ Bait and nets ●​ Trawl fishing ●​ Quantities of


●​ Skilled and ●​ Pot harvesting fresh fish or
(Fishing) experienced seafood ready
fisheries for wholesale
workers

Secondary ●​ Engine parts ●​ Flow ●​ Finished


●​ Glass & production vehicles ready
(Car paint ●​ Cell for sale to
manufacture) ●​ Production production consumers
line workers
Tertiary
●​ Ingredients ●​ Baking, ●​ Prepared
(Restaurant) ●​ Gas & roasting & meal
electric grilling delivered to a
●​ Skilled chefs ●​ Plate customer's
presentation table
and table
service

Quaternary ●​ Business ●​ Market ●​ Finished


data research business
(Business ●​ Specialist ●​ Data analysis report or
consultancy) software presentation
●​ Qualified to clients
analysts

Operations & Sustainability


●​ Sustainable operations management involves integrating sustainability
practices into all aspects of the operations management process, from
sourcing materials to delivering products/services​

●​ There are three elements to sustainable operations management


Examples of sustainability considerations in operations management​

●​ There are a range of ways to improve sustainability in operations


management​

Examples of Sustainability Practices in Operations Management

Method Explanation Example

●​ Selecting ●​ Outdoor clothing brand


Green Supply environmentally Patagonia uses
Chain friendly suppliers, sustainable materials
Management reducing waste, and including organic cotton
minimising the and recycled polyester in
businesses carbon its garments, follows fair
footprint throughout labour practices
the supply chain throughout its supply
chain and discloses
information about its
supply chain to the public

●​ ​
Energy ●​ Implementing Danone is committed to
Efficiency energy-saving using 100% renewable
technologies, energy sources with an
optimising equipment ambitious goal to reduce
and machinery and its environmental impact
reducing energy by 2030 and becoming
consumption carbon neutral by 2050
wherever possible

Waste Reduction ●​ Introducing waste ●​ Fairphone designs


and Recycling management modular smartphones
systems, adopting targeted at
lean manufacturing environmentally-consciou
principles and s consumers that enable
designing products users to replace and
with a focus on upgrade individual
recyclability and components easily,
reduced material extending the life of the
usage through the use device
of eco-friendly
materials and
designing for
durability

​
Promoting fair ●​ Ensuring healthy and ●​ At Google workers can
labour practices safe working benefit from free meals,
conditions through nap pods and on-site
policies such as doctors amongst many
flexible working, other facilities - and can
ample breaks, access even bring their pets to
to training and advice work!
as well as physical ●​ The company monitors
protection such as air employee satisfaction
filters and safety and happiness and has
equipment in place moved to a hybrid
working model which
provides workers with
flexibility

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