Operational management
Samenvatting
Melvin Hong
2021/2022
,Chapter 1: Operations management Activity of managing the recourses that create and
deliver services and product
Core functions organisation:
Operations managers manage these,
-marketing
sometimes in organisations they have a
-product/service development
different name
-operation function
There are more support functions like,
accountant, technical, etc.
In many organisations it isn’t all clear
what a operation manager does see
figure 1.2 P7
All organisation that create something has a operation manager with operation activities. It is also just
as important for a small organisation as well for the large ones ‘operations management uses
resources to appropriately create outputs that fulfil defined market requirement’
Operations management is also very important for non profit organisations, managing those
organisations is the same commercial organisations. The only difference is the strategic
objectives, they may be more complex and involve a mixture of political, economic, social or
environmental objectives.
New operation agenda:
-new technology See figure 1.4 P12
-different supply arrangements
-increased emphasis on social and environmental issues
Input-transformation-output proces: transformed resources are going through the transformation
process (with transforming recourses, like staff and facilities) and come out as output with a value
added for the customer. There are different types of inputs:
-materials: transform product to their physical properties
-information: transform information to their informational properties, some change the possession
of the information (library) or the location (telecommunication companies)
-customers: change their physical properties (barber) or store (hotel) or locate (airlines) or physical
state (hospital/entertainment) — co-production: when customer plays a role in the vital part of
provision of the product/service (creating atmosphere in a restaurant)
Some organisations combine all three of them, but most often only 1 is dominant
The transforming resources: staff and facilities are the ones who act on the transformed resources.
The nature of those two depend on the organisation (accountancy— more educated staff than in a
supermarket)
Operations create product or services, most organisations produce both elements see figure 1.6
p17 here you see both ends of the two dimensions. Outputs are also more often seen as a package
of both, so can the decision to buy a Samsung phone been based on the service they offer
Servitization: is a term often used to indicate how operations, which once consideredthemself als
exclusively producers of products are becoming more service-conscious
Subscription services are also a idea of output, which can be seen as service
Any discussion about the nature of output from operations must involve customers, they are the
reason they exist and they aren’t a homogeneous group. A lot of research has gone in to
understand the customer. The only distinction which can be made in the type of customer is B2B
and B2C
We also can look closer to the operations, you will find out that every operation exist of smaller
processes forming a network. See table 1.3 P19 , inside these processes you can find another
network of individual units or resource such as people and individual items of process technology. A
bigger lever is the supply-network a network of businesses and operations. This is called the
hierarchy of operations see figure 1.7 P20
, Operations management to all part of the business: all functions manage processes, so operations
management is important to all functions, and all managers schools have something to learn from the
principles, concepts, etc. of a operation manager. So there are two meanings of operation we
distinguish:
-as a function: the part of the organisation which creates and deliver services and products for the
external customers
-as an activity: the management of the processes whitin an organisation
For businesses it’s important to have many processes to satisfy the customers need. If they are
completely fulfilled it’s called end to end business projects
How do operations and processes differ— four V’s:
-volume: how many products/services does it sell — higher volume, gives low cost per unit
-variety dimension: how many different products/services does it sell, more variety means more
flexible NOTE: high volume goes together with low variety and visa versa
-variation: variation in the demand (seasons)
-visibility: how much from the operation the customer experience or how much is exposed to
them, some operations have both high- and low visibility processes in the same operation— like
an airport
See figure 1.9 P26
What do operation managers do: depends on the organisation, but there are some general
classes of activities that apply to every organisation:
-direct: overall strategy of the operation
-design: services, products and processes of the operation
-deliver: deliver products and services from supplier to customer
-develop: process performance
But don’t forget the importance of sustainability. The first idea with this is — proces design
influence the proportion of energy and labour that is wasted as well as materials wastage. For an
operation manager it’s important to minimalist this
We now make the model of operations management figure 1.11 P29
The first idea is that operations and processes that make up both the operation and other
business functions are transformation systems that take in inputs and use process resource to
make output. The second idea is that the recourses both in an organisations operations as a
whole and it’s individual process need to be managed in terms of how directly, how they are
designed, how they deliver is planned and controlled and how they are developed and improved
Samenvatting
Melvin Hong
2021/2022
,Chapter 1: Operations management Activity of managing the recourses that create and
deliver services and product
Core functions organisation:
Operations managers manage these,
-marketing
sometimes in organisations they have a
-product/service development
different name
-operation function
There are more support functions like,
accountant, technical, etc.
In many organisations it isn’t all clear
what a operation manager does see
figure 1.2 P7
All organisation that create something has a operation manager with operation activities. It is also just
as important for a small organisation as well for the large ones ‘operations management uses
resources to appropriately create outputs that fulfil defined market requirement’
Operations management is also very important for non profit organisations, managing those
organisations is the same commercial organisations. The only difference is the strategic
objectives, they may be more complex and involve a mixture of political, economic, social or
environmental objectives.
New operation agenda:
-new technology See figure 1.4 P12
-different supply arrangements
-increased emphasis on social and environmental issues
Input-transformation-output proces: transformed resources are going through the transformation
process (with transforming recourses, like staff and facilities) and come out as output with a value
added for the customer. There are different types of inputs:
-materials: transform product to their physical properties
-information: transform information to their informational properties, some change the possession
of the information (library) or the location (telecommunication companies)
-customers: change their physical properties (barber) or store (hotel) or locate (airlines) or physical
state (hospital/entertainment) — co-production: when customer plays a role in the vital part of
provision of the product/service (creating atmosphere in a restaurant)
Some organisations combine all three of them, but most often only 1 is dominant
The transforming resources: staff and facilities are the ones who act on the transformed resources.
The nature of those two depend on the organisation (accountancy— more educated staff than in a
supermarket)
Operations create product or services, most organisations produce both elements see figure 1.6
p17 here you see both ends of the two dimensions. Outputs are also more often seen as a package
of both, so can the decision to buy a Samsung phone been based on the service they offer
Servitization: is a term often used to indicate how operations, which once consideredthemself als
exclusively producers of products are becoming more service-conscious
Subscription services are also a idea of output, which can be seen as service
Any discussion about the nature of output from operations must involve customers, they are the
reason they exist and they aren’t a homogeneous group. A lot of research has gone in to
understand the customer. The only distinction which can be made in the type of customer is B2B
and B2C
We also can look closer to the operations, you will find out that every operation exist of smaller
processes forming a network. See table 1.3 P19 , inside these processes you can find another
network of individual units or resource such as people and individual items of process technology. A
bigger lever is the supply-network a network of businesses and operations. This is called the
hierarchy of operations see figure 1.7 P20
, Operations management to all part of the business: all functions manage processes, so operations
management is important to all functions, and all managers schools have something to learn from the
principles, concepts, etc. of a operation manager. So there are two meanings of operation we
distinguish:
-as a function: the part of the organisation which creates and deliver services and products for the
external customers
-as an activity: the management of the processes whitin an organisation
For businesses it’s important to have many processes to satisfy the customers need. If they are
completely fulfilled it’s called end to end business projects
How do operations and processes differ— four V’s:
-volume: how many products/services does it sell — higher volume, gives low cost per unit
-variety dimension: how many different products/services does it sell, more variety means more
flexible NOTE: high volume goes together with low variety and visa versa
-variation: variation in the demand (seasons)
-visibility: how much from the operation the customer experience or how much is exposed to
them, some operations have both high- and low visibility processes in the same operation— like
an airport
See figure 1.9 P26
What do operation managers do: depends on the organisation, but there are some general
classes of activities that apply to every organisation:
-direct: overall strategy of the operation
-design: services, products and processes of the operation
-deliver: deliver products and services from supplier to customer
-develop: process performance
But don’t forget the importance of sustainability. The first idea with this is — proces design
influence the proportion of energy and labour that is wasted as well as materials wastage. For an
operation manager it’s important to minimalist this
We now make the model of operations management figure 1.11 P29
The first idea is that operations and processes that make up both the operation and other
business functions are transformation systems that take in inputs and use process resource to
make output. The second idea is that the recourses both in an organisations operations as a
whole and it’s individual process need to be managed in terms of how directly, how they are
designed, how they deliver is planned and controlled and how they are developed and improved
