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Is the responsibility of managers engaged to produce goods or services. It is concerned with creating, operating and controlling a transformational process that takes inputs from a variety of resources and produces outputs.
Operation Management's Relationship to Business Objectives
The Operations function is imperative to achieving an organisation's objectives because it is within this function that cost of production and the quality of the finished products are determined therefore directly impacting upon revenue, costs, productivity and, ultimately, profits.
A series of procedures and processes undertaken in order to create outputs
The process of transforming resource inputs into finished goods and services
...A collection of raw data from the outside world that is put into the computer
The process involved in converting inputs into outputs. This stage is important, as it is the stage where value can be added to the inputs and productivity gains made due to efficiency in the processes and procedures undertaken.
During analysis, a list of the results that a system must produce.
A measure of the functioning and efficiency of a production system and relates to the level of output obtained from a set level of inputs.
Importance of Productivity
High levels of productivity allows the organisation to be more competitive by minimising the inputs needed to generate a given outputs, this will result in more output per unit of inputs, thereby leading to greater profitability.
Facilities Design and Layout
Facilities Design and Layout is used by operations managers to optimise operations. Involves planning the layout of workspace to streamline the production process
Types of Layout
Fixed Position/project layout
Fixed Position Layout
Deals with large scale processes such as the construction of bridges, ships, aircraft or buildings.
Involves pieces of equipment with like functions being grouped
Deals with the manufacturing of goods in mass volume using an assembly line.
Involves inputs moving along different stages on a conveyor belt.
The decentralisation of productive activities so that production does not occur at one worksite; also referred to as decentralisation.
Involves managing the use, storage and delivery of materials to ensure the right amount of inputs are available when required in the operations system
Supply Chain Management
Is the management of the range of suppliers from which the organisation purchases materials and resources.
Ensures that costs are minimised and that the operations system has access to the right amounts of inputs when required.
Just In Time
An inventory management system that aims to avoid holding any stocks (either as inputs or finished goods); supplies arrive just as needed for production, and finished products are immediately dispatched or sold to customers.
Refers to the degree of excellence of goods or services and their fitness for a stated purpose.
A strategy used by oranisations to ensure that products meet customer expectations.
a process that ensures that the product meets the customers' needs
A proactive approach which aims to build quality into work processes, thereby avoiding errors before they occur. May involve the use of an International Organisation for Standardisation (IOS) certification.
Total Quality Management (TQM)
A holistic approach to quality where all members of an organisation aim to participate in ongoing improvement of organisational culture
A group of workers who meet regularly to discuss quality and
Practical application of science to achieve a commercial or industrial
computer Aided manufacturing (CAM)
Computer Aided Manufacturing (CAM)
Also referred to as Computer Numerical Control (CNC), involves the control of machinery, tools and equipment through a computer. Machines are fed programmed instructions from a central
Computer Aided Design (CAD)
A computer program that facilitates the creation and modification
Computer Integrated Manufacturing (CIM)
The combination of CAD and CAM. CIM is a computer program that controls and directs production from start to finish. Computers can
The use of computer-controlled robots to perform manual tasks,
Flexible Manufacturing Systems (FMS)
This is a complete system involving total computer control of the operations system using CAM-based equipment and automated transport systems that deliver component parts and raw materials in the correct quantities just as they…