153+2
2/27/2013
Unit 305 – Operations Management
Introduction
Welcome to Operations Management – Unit 305
•
•
Operations is responsible for supplying the product or service of the organisation.
Operations managers provide value for the customer at the lowest cost by making decisions for the operations function and by managing the transformation process.
27/02/2013
Week 1 - Operations Management and the
Value Chain
1
Unit 305 – Operations Management
A Thought Worth Remembering
In an era where many of the world’s population is starving …. it has recently been estimated that up to 50% of the world’s food production is wasted, due in part to inefficient management of operations. 27/02/2013
Week 1 - Operations Management and the
Value Chain
2
Unit 305 – Operations Management
Course Details
In this topic we will consider the nature and strategic importance of operations management. We will define the important terms we will be using throughout this unit and trace the evolution of operations management from the
Industrial Revolution on. We will consider in some detail the rise of manufacturing and services, and the concept of the value chain. We will outline the general theory of operations management and start to demonstrate how the successful operations manager should blend the theory with the practical constraints of the situation at hand.
27/02/2013
Week 1 - Operations Management and the
Value Chain
3
1
2/27/2013
Unit 305 – Operations Management
Operations as a Process
Operations has been defined as a transformation process converting inputs into outputs.
Manufacturing plants takes raw materials and converts those raw materials into finished goods.
Service industries more usually provide less tangible products through adding expertise or specialised services to clients.
Both types of operations ADD VALUE through a transformation process.
27/02/2013
Week 1 - Operations
Unit 305 – Operations Management
Introduction
Welcome to Operations Management – Unit 305
•
•
Operations is responsible for supplying the product or service of the organisation.
Operations managers provide value for the customer at the lowest cost by making decisions for the operations function and by managing the transformation process.
27/02/2013
Week 1 - Operations Management and the
Value Chain
1
Unit 305 – Operations Management
A Thought Worth Remembering
In an era where many of the world’s population is starving …. it has recently been estimated that up to 50% of the world’s food production is wasted, due in part to inefficient management of operations. 27/02/2013
Week 1 - Operations Management and the
Value Chain
2
Unit 305 – Operations Management
Course Details
In this topic we will consider the nature and strategic importance of operations management. We will define the important terms we will be using throughout this unit and trace the evolution of operations management from the
Industrial Revolution on. We will consider in some detail the rise of manufacturing and services, and the concept of the value chain. We will outline the general theory of operations management and start to demonstrate how the successful operations manager should blend the theory with the practical constraints of the situation at hand.
27/02/2013
Week 1 - Operations Management and the
Value Chain
3
1
2/27/2013
Unit 305 – Operations Management
Operations as a Process
Operations has been defined as a transformation process converting inputs into outputs.
Manufacturing plants takes raw materials and converts those raw materials into finished goods.
Service industries more usually provide less tangible products through adding expertise or specialised services to clients.
Both types of operations ADD VALUE through a transformation process.
27/02/2013
Week 1 - Operations
References: Hammer, M., & Champy, J. (1994). Reengineering the Corporation. New York, NY: Harper Business. Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. New York: The Free Press. Sch Taylor, F. W. (1911). Scientific Management. New York:: Harper & Row. van Weele, A. J. (2010). Purchasing and Supply Chain Management 5th edition. Singapore: Cengage Learning.