Introduction 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

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