May 31, 2007 0 comments
The Transformation Model
picture will be abailable later
IMPORTANCE OF OPERATIONS MANAGEMENT
- 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
- 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
- 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
3) SHORT TERM PLANNING - TACTICS
- Day to day production changes
4) MANAGEMENT OF TECHNOLOGY
- Product technology
- Process technology
5) MANAGEMENT OF PEOPLE
KEY DECISION AREAS IN O.M.
- What is the strategic plan?
- What service or product is provided?
- What labour, materials, plant, equipment, furniture and fittings are required?
Location and Layout
- Where and how do we operate?
- How do people and technology work together?
- What stock levels and purchasing policies are required?
- How much output is required and when?
- How much input is required and when?
Scheduling and Controlling
- How are people and equipment?
- Are the internal and external standards being met?
- Do output levels allow for adequate servicing?