Read the summary and the most important questions on Operations and sales

• 1 Introduction to operations management

  This is a preview. There are 2 more flashcards available for chapter 1
  Show more cards here

• 4 Basic issues in relation to organisational design

  1. The nature of hierarchy
  2. The degree of centrilasation
  3. The extent of formalisation
  4. The level of complexity

• Explain tall and flat organisations

  Tall: Many layers between CEO and workforce
  Flat: Few layers between CEO and workforce

• Expain highly centralised and decentralised

  Highly centralised: Power is held at the centre and ALL decisions are made by CEO
  Decent: Low-level managers have authority to make decisions and take actions

• How is the opreations function organised? (3 steps)

  System -- Clearly identifiable, regularly interacting, interrelating groups of activities
  Boundary around the system -- detemrines what is in the system and what is not
  Simultaneous multiple containment -- interrelated and made up of subsystems, which are subsystems of a larger system

• The relationship of OM with Other Management Functions

  A key aspect of any organisation is its ability to ensure collaboration across the different areas

• What does an Operations Manager do?

  Managing the Shot Term and Long term 
  Ordered or “Messy” Management

• Processes - the heart of operations management - 4Vs

  Volume: The size or scale of output/number of items manufactured or customers served.
  Variety: Size of product range or number of services offered.
  Variation: How the level of demand changes over time/seasonal lunchtime in a restaurant.
  Variability: The extend to which each product or service may be customised./steak: Medium/rare/welldone

• The distinguishing Features of services

   Intangibility - the services do not physically exist, but are directly experienced by customers -
  Heterogeneity - consumers have unique experiences of services that are the same as other consumers; different level of satisfaction -
  Perishability - serviced cannot be inventoried or put into stock; it is essential to ensure services are used to their maximum/ an airline seat cannot be sold twice; -
  Simultaneity - service is provided at the same time as it is requested -
  Inseparability - providing service as the same place as the customer

• Processing Materials, Customers and Information

  1. Materials processing operation (MPO) - Materials: physical and come in all kinds of shape and sizes
  2. Customer processing operation (CPO) - Human: made of the same material - flesh and blood, but has different needs and wants and behaviour
  3. Information processing operation (IPO) - Collection of facts and data; Internet revolution - from spoken word to writing, then printing and digital revolution; The information systems do: handle large info, perform complex calculation and control many processes at the same time

• Managing the Shot Term and Long term

  Short term - operation activity within the factory, shop, or smith on a minute-by-minute basis
  Long term - the development and investment in process that will lead to the organisation’s success