Operational Management

11 Key excerpts on "Operational Management"

• 

  eBook - ePub

  Essential Guide to Operations Management

  Concepts and Case Notes

  • David Bamford, Paul Forrester(Authors)
  • 2010(Publication Date)
  • Wiley

    (Publisher)

  1 OPERATIONS MANAGEMENT IN CONTEXT

  Introduction

  The aim of any service, public sector or retail or industrial operation is to deliver goods and services of the quality, quantity, cost and availability that will satisfy the customers’ needs while at the same time making most effective use of resources. This can only be achieved by giving attention to the design of products, processes and work for employees, and through competent planning and control. This is what Operations Management is about. This book presents the fundamental principles of operations management in a novel and structured way that is appropriate to the needs of contemporary Operations Managers, and students in this field.

  Operations management covers decision making in the organization, from top level management issues such as developing an operations strategy congruent with the company’s business and marketing strategies, to the immediate control of operations. It is, therefore, more than Operational Management. Each chapter develops an understanding of the theory and practice of key operational concepts to enable delivery of the strategy.

  The book is structured in a unique manner, to better reflect the concerns of the contemporary Operations Manager in the twenty-first century. The book is based around the conceptual model of operations management.

  The model centres upon the idea that operations management comprises three essential components:

  1. Design of operations processes, products and services, and the work of individuals;
  2. Planning and control of operations once designs are in place and operational; and
  3. Ensuring quality of products and services produced and delivered, and (wherever possible) improving on these.

  However these cannot be addressed in isolation. The essential element in effective operations management is the integration

  Sign up to read

  Learn more about book
• 

  eBook - PDF

  Operations Management

  An Integrated Approach

  • R. Dan Reid, Nada R. Sanders(Authors)
  • 2020(Publication Date)
  • Wiley

    (Publisher)

  Global com- petition, e-business, the Internet, and advances in technology require flexibility and responsiveness. Increased financial pressures require lean and agile organizations that are free of waste. This new focus has placed operations management in the business limelight because it is the func- tion through which companies can achieve this type of competitiveness. Consider some of today’s most successful companies, such as Amazon, Walmart, Southwest Airlines, General Electric, Starbucks, Apple Computer, Toyota, FedEx, and Procter & Gamble. These companies have achieved world-class status in large part due to a strong focus on operations man- agement. In this book you will learn specific tools and techniques of oper- ations management that have helped these and other companies achieve their success. The purpose of this book is to help prepare you to be successful in this new business environment. Operations management will give you an understanding of how to help your organization gain a competitive advantage in the marketplace. Regardless of whether your area of exper- tise is marketing, finance, MIS, or operations, the techniques and con- cepts in this book will help you in your business career. The material will teach you how your company can offer goods and services cheaper, better, and faster. You will also learn that operations management con- cepts are far-reaching, affecting every aspect of the organization and even everyday life. 2 CHAPTER 1 Introduction to Operations Management What Is Operations Management? LEARNING OBJECTIVE Define operations management. Every business is managed through three major functions: finance, marketing, and operations management. Figure 1.1 illustrates this by showing that the vice presidents of each of these functions report directly to the president or CEO of the company. Other business functions— such as accounting, purchasing, human resources, and engineering—support these three major functions.

  Sign up to read

  Learn more about book
• 

  eBook - PDF

  Think Strategically

  • X. Gimbert(Author)
  • 2011(Publication Date)
  • Palgrave Macmillan

    (Publisher)

  It is crucial for entrepreneurs and senior managers to be conscious of what is really strategic, to realize what type of decisions can affect the future of their organization. Equally, it is essential for them to have a clear under- standing of the different levels inherent in strategy and the consequences of 4 Strategic Management, Levels and Processes 5 this. And lastly, it is vital for them to be well acquainted with the different ways in which a strategic decision can be faced. 1.1 Operational Management and Strategic Management When a manager is stressing and straining because a customer defaults on a large payment, a supplier has failed to deliver a key order, his information systems are down or there is a conflict between important members of his team, is he managing strategically? Much as these are important problems, and much as they all have to be solved as quickly as possible so that the business can operate normally and its results are not adversely affected, these problems do not belong to the realm of strategic management. They are all operational problems – which does not mean they are any the less important, as has already been emphasized above. Operational problems are so important that a company can go under if they are not properly addressed. This is why Operational Management absorbs almost all the hours in a working day; they are not easy to solve, but unless they are solved the future of the organization may be jeopardized. So what differences are there between strategic and operational man- agement? There are several, and they define a clear dividing line between the two types of management. One very obvious difference is that opera- tional management is a short-term approach; hence it is often described as “day-to-day management”. Operational problems arise today and require an immediate solution to prevent them from affecting the organization.

  Sign up to read

  Learn more about book
• 

  eBook - ePub

  The Essential MBA

  • Susan Miller(Author)
  • 2011(Publication Date)
  • SAGE Publications Ltd

    (Publisher)

  ensuring their efficient, safe (for those involved) and environmentally benign operation. When we run our event we have to plan and control its smooth operation, without delays, encompassing the supply of dinner courses and drinks, ensuring the safety of our guests, and disposing of rubbish appropriately. It is therefore fair to say that at different parts of our lives we become operations managers and thus responsible for reconciling resources with environmental needs. Operations management, and its principles, therefore, are, not limited to an organization’s function. Almost all functions will have to organize their processes and resources to meet some environmental or market requirements. A marketing department will have to develop and manage a process to collect and analyze customer data, which will subsequently help inform that organization’s marketing strategy. It is therefore important not to dismiss the management of operations as the responsibility of a function but to understand and implement its principles.

  What is operations management?

  From the above introduction we may conclude that operations management may involve several overlapping notions such as process management, value, and a reconciliation of resources with market requirements. When a product is manufactured, or when a passenger goes through an airport, a process is followed. Put simply, this process is trying to add value by transforming an input into an output. So, in the case of a manufactured product, value is being added when the raw material is transformed into an end product, or in the case of the airport, value is being added when passengers’ states are ‘transformed’ as they move from the carpark to the departure gate.

  In any transformation process, there are usually two types of resources as shown in Figure 7.1 . The first is referred to as transformed and includes those resources that are being changed through the process. In manufacturing this would include raw materials whereas in services this would include customers and information. The second type of resources is referred to as the transforming

  Sign up to read

  Learn more about book
• 

  eBook - PDF

  Operations Management

  An Integrated Approach

  • Danny Samson, Prakash J. Singh(Authors)
  • 2008(Publication Date)
  • Cambridge University Press

    (Publisher)

  They help steer an organisation towards achieving its long-term goals and, therefore, shape the future status and success of the organisation. They can be developed and implemented through formal (planning) efforts or emerge as consistent patterns in deci- sions and actions that are conditioned by a variety of internal and external organisational contextual factors. The strategic approach to operations management recognises the pivotal role played by dynamic capabilities and the significance of organisation- specific combinations of organisational resources, work routines, value sys- tems, etc., in delivering a unique value proposition that is perceived by cus- tomers as superior to competitor offerings. A normative approach to strate- gic management of operations advocates the identification, agreement and definition of competitive priorities based on target markets at the business- unit level. The heart of this hierarchical planning approach is developing and deploying operations capabilities for supporting the agreed competitive priorities. Underlying this approach are managerial decisions and actions regarding the operations structure and infrastructure of the organisation. Moreover, the dynamics of this approach are underpinned by the intricacies of the internal and external organisational context. Alternatively, an emergent view of strategy recognises the significance of consistent patterns in decisions and actions as the basis of studying operations strategy. The current practice indicates that organisations successfully pursue alternatives to the formal planning approach, such as the choice of major improvement programs, pursuing specific organisational practices, consis- tent entrepreneurial behaviour of individuals, etc. Irrespective of the partic- ular approach taken, there are some core themes that represent the strategic approach to operations management.

  Sign up to read

  Learn more about book
• 

  eBook - PDF

  Operational Risk and Resilience

  Understanding and Minimising Operational Risk to Secure Shareholder Value

  • Chris Frost, David Allen, James Porter, Philip Bloodworth(Authors)
  • 2000(Publication Date)
  • Butterworth-Heinemann

    (Publisher)

  The starting point for managing risk in these areas is an under-standing that operational issues have a direct bearing on strategic management. Continuity of operations determines the context in which managers can manage. More particularly, failure at the operational level has a knock-on effect at the strategic level. Running smooth operations gives managers more time and choice to make better decisions. Ongoing oper-ational risk management can generate the right information so that managers can fine-tune their tolerance, or appetite, for risk-taking in the future. The key aim is being able to better control the quality and con-tinuity of service to the customer. Today’s organizations are finding that customer satisfaction is becoming the key ‘differ-entiator’ separating them from the competition. Operational risk management can play a vital role in ensuring that man-agers can systematically improve customer service by ensuring that they have a strict rein over operations and service delivery. We have mediated this message through the various sections in this chapter: • Capacity management: Managing demand and supply is critical to the timely delivery of a product or service to the customer, and ensures that the risks associated with opera-tional business processes are managed to an acceptable level and bottlenecks are avoided. Operational delivery 103 • Human resource management: Operational continuity and delivery of service is as much dependent on the ‘continuity’ of human assets as it is of physical assets. In other words, if a culture exists where people are not motivated, the ability of the organization to deliver the service effectively will be called into question. • Supplier management: Control and management of risk in the supply chain is an essential part of ensuring that the product is delivered in the most efficient way possible to the customer.

  Sign up to read

  Learn more about book
• 

  eBook - PDF

  Operations Management NQF2 SB

  TVET FIRST

  • M Engelbrecht(Author)
  • 2013(Publication Date)
  • Macmillan

    (Publisher)

  Module 1 2 Topic 1 Roles of an Operations Manager Identify and discuss the roles of an Operations Manager Overview In this Module you will learn how to: identify the roles of a Business Operations Manager. These roles include ensuring that organisational procedures and practices are performed according to qualitative industry standards and ensuring optimal productivity collect and organise, via observation and research, information to clarify the roles of a Business Operations Manager discuss the roles of a Business Operations Manager which may include ensuring that organisational procedures and practices are performed according to qualitative industry standards and ensuring optimal productivity. • • • Module 1 Identify and discuss the roles of an Operations Manager 3 Unit 1.1 The roles of a Business Operations Manager All businesses provide either goods or services. The way in which the business does this is referred to as its operations. Operations can be defined as the recurring activities of an organisation directed toward producing a product or rendering a service. The activities are recurring as it is essential that they are done over and over again, in a certain way which will ensure the success of the operation. These activities may include marketing, sales, production, purchasing, human resources, finance and accounting. Examples: Toyota’s operations consist of producing motor cars and distributing them to showrooms in Southern African and Australia. DSTV’s operations involve transmitting digital television pictures to its paying customers. Checkers’ operations involve the selling of retail goods from its many stores around the country. The business activities, or operations, of these firms are ongoing from month to month. In order for operations to run successfully, they need to be overseen by a trained and dedicated Operations Manager.

  Sign up to read

  Learn more about book
• 

  eBook - PDF

  Construction Management

  Principles and Practice

  • Alan Griffith, Paul Watson(Authors)
  • 2017(Publication Date)
  • Bloomsbury Visual Arts

    (Publisher)

  115 Introduction Within this chapter the concept of linking the vital organisational component of ‘operations’ into the ‘corporate decision-making’ process is advocated. This is done in order to stress that a ‘sustainable competitive advantage’ is obtained only if operational functions are linked to strategic decisions and utilise concepts such as Financial Planning and Budgeting Control. Further, the chapter seeks to establish the importance of cash-flow management. This is one of the most crucial activities undertaken by construction companies. However, the above have not been set out in isolation as they form part of a holistic approach to ‘control’. Effective and efficient control is dependent on regular monitoring, and this aspect is demonstrated by way of examples. The key activ-ities of cash-flow analysis, budgetary control and variance analysis incorporated in this chapter, pro-vide a coherent systematic approach for construction managers to engage in the decision-making process. Operations Strategy Operations management is concerned with how an organisation delivers its service or product. The operations function should not be a loosely knit aggregation of disparate functions but rather a coher-ent focused unit. Whether a company is producing goods or services, or a mix of both, there is clearly an operations function. This function should provide the host organisation with a competitive weapon and not be a corporate millstone detracting from its competitive edge. In a construction company there exists an exceptionally heavy investment of people and resources in the production and processes deployed. For example, a construction organisation employing 250 people would have approximately 210–220 of them active in the operations function. Therefore they consume most of the capital investment and are responsible for the largest amount of fixed and vari-able costs incurred.

  Sign up to read

  Learn more about book
• 

  eBook - PDF

  Operations Strategy

  A Value Chain Approach

  • David Walters(Author)
  • 2002(Publication Date)
  • Red Globe Press

    (Publisher)

  The ‘return’ requirement of the investment market is another market management consideration. A response to customer value expecta-tions that cannot be sustained unless shareholder returns are reduced is a posi-tion that is itself not sustainable. Operations management comprises a number of activities. ‘Production’ often includes sourcing and procurement, the selection of manufacturing tech-VALUE AS A BUSINESS CONCEPT 57 niques and processes, capacity requirements planning and management, and the management of system flexibility. ‘Logistics’ considers order management (techniques and processes), customer communications, delivery management and investment options. The involvement of intermediaries becomes an important issue in this context. ‘Service’ includes the increasing range of activ-ities undertaken throughout the transaction processes. These include working with customers to develop customised product specifications prior to a sale; organising financial facilities during a sale, and the installation and regular maintenance of equipment after the sale has been made. Operational efficiency is essential if competitive advantage characteristics are to be made sustain-able and financially viable. SUMMARY This chapter has reviewed the conceptual arguments that may be incorpo-rated in developing a value exchange model. The purpose has been to combine the views of the economists with those of more recent contributors. The model developed will be revisited later, when an operational value chain planning model will be developed. REFERENCES Bach, C., R. Flanagan, J. Howels, F. Levy and A. Lima (1987), Microeconomics , 11th edition, Prentice-Hall, Englewood Cliffs. Bowman, C. and V. Ambrosini (2000), ‘Value creation versus value capture: towards a coherent definition of value in strategy’, British Journal of Management , Vol. 11. Grant, A. W. H. and L. A. Schlesinger (1995), ‘Realise your customers’ full potential’, Harvard Business Review , September/October.

  Sign up to read

  Learn more about book
• 

  eBook - PDF

  Operations Management NQF4 SB

  TVET FIRST

  • S Paarman M Bosman(Author)
  • 2013(Publication Date)
  • Macmillan

    (Publisher)

  Module 3 Fig.3.1 Planning is important in all areas of business. 45 Module 3: Planning and controlling business operations in a structured environment Operational plans are used in every area of business. We execute operational plans in: • Marketing For example, an organisation publishes Journals. Some research has shown that companies reading the Journal would prefer to have the information available in an electronic format so that the Journals are easier to use when searching for specific information. The new product has been produced and now the marketing team will have to come up with a marketing strategy for this new product. • Logistics For example, an organisation has decided that instead of using two warehouses for storing their products, they really only need one. In order for the products to be moved, careful planning needs to take place in order to ensure that space will be allocated efficiently for all the products and that the move will be done as quickly as possible to ensure minimal disruption. • Operations For example, management within an organisation has decided that the current structure of the organisation is not optimal for the continued success of the organisation. Currently there are five divisions within the organisation, and each one has its own marketing department. Management feels that one marketing department would benefit the organisation more than five separate marketing departments. Careful planning and restructuring will need to happen in order for management to merge the marketing departments. • Finance For example, when implementing salary adjustments for all staff working within an organisation, careful planning and processing will need to be done within the finance department.

  Sign up to read

  Learn more about book
• 

  eBook - PDF

  Management

  • Ricky Griffin(Author)
  • 2021(Publication Date)
  • Cengage Learning EMEA

    (Publisher)

  Inefficient or ineffective operations management, on the other hand, will almost inevitably lead to poorer performance and lower levels of both quality and productivity. In an economic sense, operations management creates value and utility of one type or another, depending on the nature of the firm’s products or services. If the product is a physi- cal good, such as a Harley-Davidson motorcycle, operations creates value and provides form utility by combining many dissimilar inputs (sheet metal, rubber, paint, internal combustion engines, and human skills) to make something (a motorcycle) that is more valuable than the actual cost of the inputs used to create it. The inputs are converted from their incoming form into a new physical form. This conversion is typical of manufacturing operations and essen- tially reflects the organization’s technology. In contrast, the operations activities of Delta Airlines create value and provide time and place utility through its services. The airline transports passengers and freight according to agreed-upon departure and arrival places and times. Other service operations, such as a Coors beer distributorship or a Zara retail store, create value and provide place and possession utility by bringing together the customer and products made by others. Although the organizations in these examples produce different kinds of products or services, their operations processes share many important features. 2 20-1b Manufacturing and Production Operations Because manufacturing once dominated U.S. industry, the entire area of operations man- agement used to be called “production management.” Manufacturing is a form of business that combines and transforms resources into tangible outcomes that are then sold to others.

  Sign up to read

  Learn more about book