CIPS L5M9 Operations Management LO1
Operations Management
The processes of managing the resources and processes involved in the acquisition and transformation
of inputs and the distribution of outputs.
Five Key Performance Dimensions / Performance Objectives - Slack and Brandon-Jones
1. Quality
2. Speed
3. Dependability
4. Flexibility
5. Cost
Quality
Producing products and services that satisfy customer needs.
Speed
Ensuring a short lapse of time between when orders are made and fulfilled.
Dependability
Producing products that are reliable and consistent.
Flexibility
Adapting to changes in demand or marketplace changes.
Cost
Producing products and services at minimum cost.
Operation
Smallest divisible piece of work or activity within an organisation. CREATING FLOW
Production Methods
1. Make to Order - craft production. Does not commence until an order has been received.
2. Mass Production - make to stock - low variety / high volume
3. Mass Customisation / Late Customisation - mix between made to order and mass production.
Products standardised to a certain point e.g. Dell
ITO
Input - Transformation - Output
The market is the point in which an output transforms into an input
Input
, * Materials
* Information
* Customers
Transformation
* Facilities
* Staff
* Infrastructure e.g. road, rail, air
* IT
* Marketing
Four V's
1. Volume - quantity of products / services produced
2. Variety - of products / services produced
3. Visibility - of the process to customers
4. Variation - changes in demand for products / services
Order Qualification
Competitive standards that make an organisations products viewed as fit for purpose by customers
Order Winning
Standards that separate the products from on organisation to another
Hayes & Wheelwrights 4 Stages of Operations Readiness
1. Internal Neutrality
2. External Neutrality
3. Internally Supportive
4. Externally Supportive
Internal Neutrality
Operations function makes a minimal contribution to the overall corporate strategy.
Stage 1 - correct the worst problem
External Neutrality
Operations function compares itself with similar businesses or organisations. Actively keeping pace with
comparable companies in the same industry.
Stage 2 - adopt best practice
Internally Supportive
Operations management function delivers the best capabilities to the organisation, contributing to the
organisations overall competitive strategy.
Stage 3 - link strategy with operations
Externally Supportive
Operations Management
The processes of managing the resources and processes involved in the acquisition and transformation
of inputs and the distribution of outputs.
Five Key Performance Dimensions / Performance Objectives - Slack and Brandon-Jones
1. Quality
2. Speed
3. Dependability
4. Flexibility
5. Cost
Quality
Producing products and services that satisfy customer needs.
Speed
Ensuring a short lapse of time between when orders are made and fulfilled.
Dependability
Producing products that are reliable and consistent.
Flexibility
Adapting to changes in demand or marketplace changes.
Cost
Producing products and services at minimum cost.
Operation
Smallest divisible piece of work or activity within an organisation. CREATING FLOW
Production Methods
1. Make to Order - craft production. Does not commence until an order has been received.
2. Mass Production - make to stock - low variety / high volume
3. Mass Customisation / Late Customisation - mix between made to order and mass production.
Products standardised to a certain point e.g. Dell
ITO
Input - Transformation - Output
The market is the point in which an output transforms into an input
Input
, * Materials
* Information
* Customers
Transformation
* Facilities
* Staff
* Infrastructure e.g. road, rail, air
* IT
* Marketing
Four V's
1. Volume - quantity of products / services produced
2. Variety - of products / services produced
3. Visibility - of the process to customers
4. Variation - changes in demand for products / services
Order Qualification
Competitive standards that make an organisations products viewed as fit for purpose by customers
Order Winning
Standards that separate the products from on organisation to another
Hayes & Wheelwrights 4 Stages of Operations Readiness
1. Internal Neutrality
2. External Neutrality
3. Internally Supportive
4. Externally Supportive
Internal Neutrality
Operations function makes a minimal contribution to the overall corporate strategy.
Stage 1 - correct the worst problem
External Neutrality
Operations function compares itself with similar businesses or organisations. Actively keeping pace with
comparable companies in the same industry.
Stage 2 - adopt best practice
Internally Supportive
Operations management function delivers the best capabilities to the organisation, contributing to the
organisations overall competitive strategy.
Stage 3 - link strategy with operations
Externally Supportive
