Operation Management
What is operations management?
Operations management defined
Operations management is the activity of managing the resources which are devoted to the production and delivery of products and services.
1
The consultancy services market – % of world revenues of 40 largest consultancy firms
Financial 6 Organizational design 11 Marketing / sales 2
Operations and process management 31
Benefits / actuarial 16 Corporate strategy 17
IT strategy 17
The operations function is fashionable!
Back office operation in a bank
Kitchen unit manufacturing operation
Retail operation
They are all operations
Take-out / restaurant operation
2
The best way to start understanding the nature of ‘operations’ is to look around you Everything you can see around you (except the flesh and blood) has been processed by an operation Every service you consumed today (radio station, bus service, lecture, etc.) has also been produced by an operation Operations Managers create everything you buy, sit on, wear, eat, throw at people, and throw away
A general model of operations management
Transformed resources … Materials Information Customers Design Input resources Transforming resources … Facilities Staff Operations management Planning and control Operations strategy
The operation’s strategic objectives Operations strategy The operation’s competitive role and position
Improvement Output products and services Customers
3
Operations management at IKEA
Design elegant products which can be flat-packed efficiently Design a store layout which gives smooth and effective flow Ensure that the jobs of all staff encourage their contribution to business success
Site stores of an appropriate size in the most effective locations
Continually examine and improve operations practice
Maintain cleanliness and safety of storage area
Monitor and enhance quality of service to customers Arrange for fast replenishment of products
Prêt a Manger
Operations management defined
Operations management is the activity of managing the resources which are devoted to the production and delivery of products and services.
1
The consultancy services market – % of world revenues of 40 largest consultancy firms
Financial 6 Organizational design 11 Marketing / sales 2
Operations and process management 31
Benefits / actuarial 16 Corporate strategy 17
IT strategy 17
The operations function is fashionable!
Back office operation in a bank
Kitchen unit manufacturing operation
Retail operation
They are all operations
Take-out / restaurant operation
2
The best way to start understanding the nature of ‘operations’ is to look around you Everything you can see around you (except the flesh and blood) has been processed by an operation Every service you consumed today (radio station, bus service, lecture, etc.) has also been produced by an operation Operations Managers create everything you buy, sit on, wear, eat, throw at people, and throw away
A general model of operations management
Transformed resources … Materials Information Customers Design Input resources Transforming resources … Facilities Staff Operations management Planning and control Operations strategy
The operation’s strategic objectives Operations strategy The operation’s competitive role and position
Improvement Output products and services Customers
3
Operations management at IKEA
Design elegant products which can be flat-packed efficiently Design a store layout which gives smooth and effective flow Ensure that the jobs of all staff encourage their contribution to business success
Site stores of an appropriate size in the most effective locations
Continually examine and improve operations practice
Maintain cleanliness and safety of storage area
Monitor and enhance quality of service to customers Arrange for fast replenishment of products
Prêt a Manger