Chapter 11: Operations Management
Importance of operations management:
Reduce the costs
Increase the revenue
Reduce the amount of investment
Provide the impetus for innovation
Operations function Operations managers Operations management
The function primarily aimed at Personnel in the Involves operations manager’s
the utilisation of resources to business directly activities, decisions and
manufacture products or responsible for managing responsibilities that tie in with
render services. the operations function. the execution of the operations
function.
Operations Management model:
Operations-management strategies and performance objectives:
1|Page
, Focus on customers’ needs and continually formulate strategies and objectives to maintain, strengthen
and expand competitive position and customer base. Six main elements of customer/client needs:
1. Higher quality
2. Lower costs
3. Shorter lead time
4. Greater adaptability (flexibility)
5. Lower variability
6. High level of service
2|Page
Importance of operations management:
Reduce the costs
Increase the revenue
Reduce the amount of investment
Provide the impetus for innovation
Operations function Operations managers Operations management
The function primarily aimed at Personnel in the Involves operations manager’s
the utilisation of resources to business directly activities, decisions and
manufacture products or responsible for managing responsibilities that tie in with
render services. the operations function. the execution of the operations
function.
Operations Management model:
Operations-management strategies and performance objectives:
1|Page
, Focus on customers’ needs and continually formulate strategies and objectives to maintain, strengthen
and expand competitive position and customer base. Six main elements of customer/client needs:
1. Higher quality
2. Lower costs
3. Shorter lead time
4. Greater adaptability (flexibility)
5. Lower variability
6. High level of service
2|Page
