RPIS:

Roles

Syllabus: role of operations management

  • Long term approach to managing the operations process.
  • Involves managing efficiency, quality and production of a good or service in a manner that improves business outcomes.
  • Can be achieved through a focus on cost leadership or differentiation of goods and services (quality or features). See Cost Leadership & Differentiation.
  • Interdependence is a concept where two functions each depend on each other to do their separate roles in order for them to do their roles.

Processes

Syllabus: operations processes

Inputs

The operations process involves taking inputs and then through transformation processes, creating outputs. Inputs can either be transformed or transforming resources.

Transformation Processes

- the influence of volume, variety, variation in demand and visibility (customer contact) - (The Four Vs)

- sequencing and scheduling - Gantt charts, critical path analysis

sequencing: working out the order in which a process should be efficiently performed in order to transform the transformed resources into outputs

scheduling: determining when particular products will be made, and when specific, limited production assets (like 3D printers) will be allocated to different projects.

- technology, task design and process layout

Technology refers to all tooling and machines used within production processes. New technologies like computer aided design (CAD) and computer aided manufacturing (CAM) can increase quality, reduce labour costs and increase speed of production, at the cost of significant overhead expenditure.

Task Design is the determination of the tasks that need to be performed, the processes by which they will be performed, and the skills and experience of any labour required to perform those tasks.

Process Layout is the physical arrangement of equipment, processes and people within the operations of the business. There are three different types of layout within the process layout.

- monitoring, control and improvement

Monitoring is the process to obtain data about the performance level or quality of a particular process being conducted within the key business function.

Control occurs following a monitoring of a process. Once the data is available through the monitoring phase, in the control phase that data for actual performance is compared to the plan for the metric or variable and corrective action is taken where necessary.

Improvement relates to an increase in the relevant performance metric which is being targeted.

Outputs

Applying the transforming resources to the transformed resources a business produces outputs, which are the goods and services provided by the business together with any applicable warranties (guarantees of quality and performance for a specified period). The outputs from the transformation process are

  • the good
  • the service
  • warranties (contractual promise as to quality and operation for a period)

Influences

Syllabus: Influences on operations

Influences on operations consists of 2 acronyms:

Influences on operations (GTG LE CoQ)

  • G - Globalisation the increasing integration of economies facilitated by increases in technology, transport and communication (TTC)
  • T - Technology includes all tools, machines, utensils, weapons, instruments, housing, clothing, communicating and transporting devices and the skills by which we produce and use them
  • G - Government policies Announced intentions by government as to future laws
  • L - Legal regulation Current laws passed by government with which business must comply
  • E - Environmental sustainability Business activities that meet the needs of the present without compromising the ability of future generations to meet their own needs. Improving the business’ level of environmental sustainability is a key issue for operations management globally.
  • Co - Cost-based competition an increase in competition in the market based on cost which has arisen as a result of globalisation.
  • Q - Quality expectations The expectations of customers in relation to the quality, durability and benefits of a good or a service.

Corporate Social Responsibility (CSR)

  • the difference between legal compliance and ethical responsibility
  • environmental sustainability and social responsibility

CSR aims to ensure that companies conduct their business in a way that is ethical. This means taking account of their social, economic and environmental impact, and consideration of human rights.

Strategies

Syllabus: operations strategies

POGO SQUINT

  • P - performance objectives (QSDFCC) – quality, speed, dependability, flexibility, customisation, cost
  • O - outsourcing – advantages and disadvantages outsourcing: Contracting out to a third party (domestically or globally) a process which was formerly performed within the business offshoring: relocating jobs within the business to overseas locations seeking lower labour and other costs of production.
  • G - global factors – global sourcing, economies of scale, scanning and learning, research and development global factors refers to the practice of sourcing (purchasing) goods/services from suppliers around the world.
  • O - overcoming resistance to change – financial costs, purchasing new equipment, redundancy payments, retraining, reorganising plant layout, inertia
  • S - supply chain management – logistics, e-commerce, global sourcing integrating and managing the flow of supplies through inputs, transformation processes, and outputs to meet the needs of customers
  • Qu - quality management
    • control
    • assurance
    • improvement
  • I - inventory management – advantages and disadvantages of holding stock, LIFO (last-in-first-out), FIFO (first-in-first-out), JIT (just-in-time)
  • N - new product or service design and development
  • T - technology – leading edge, established