RussianIntroduction to Operations Management
May 31, 2007 0 comments
The Transformation Model
picture will be abailable later
IMPORTANCE OF OPERATIONS MANAGEMENT
1. PEOPLE
- all of "DIRECT EMPLOYEES" are controlled by OM
- Most of indirect employees are controlled by OM
- high proportion of management is controlled by OM, ie., 70 - 80% of all employees
2. ASSETS
- most fixed assets - plant, machinery, buildings
- most current assets - raw materials, B.O.P.'s, W.I.P., finished goods, ie., 70 - 80% of all assets
3. EXPENDITURE
- wages, salaries, machinery, plant etc.
- 70 - 80% of all expenditure
THE ROLE OF THE OPERATIONS MANAGER
1) HEAD OF A COST CENTRE
- Control of the major parts of an organizations' assets and expenditures.
2) LONG TERM PLANNING - STRATEGY
- Long term development
- Investment
- Staffing
3) SHORT TERM PLANNING - TACTICS
- Day to day production changes
- Absenteeism
- Breakdowns
- "Firefighting"
4) MANAGEMENT OF TECHNOLOGY
- Product technology
- Process technology
5) MANAGEMENT OF PEOPLE
- Training
- Appraisal
- Discipline
- Counselling
KEY DECISION AREAS IN O.M.
Business Planning
- What is the strategic plan?
Product Design
- What service or product is provided?
Resource Planning
- What labour, materials, plant, equipment, furniture and fittings are required?
Location and Layout
- Where and how do we operate?
Job Design
- How do people and technology work together?
Inventory Control
- What stock levels and purchasing policies are required?
Operations Planning
- How much output is required and when?
Materials Planning
- How much input is required and when?
Scheduling and Controlling
- How are people and equipment?
Quality Control
- Are the internal and external standards being met?
Maintenance
- Do output levels allow for adequate servicing?
Posted by Lisa
Categories:
Business Entrepreneurship
Operations Management