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Operations Management: © Nigel Slack, Stuart Chambers & Robert Johnston, 2004
Operations Management: © Nigel Slack, Stuart Chambers & Robert Johnston, 2004
Introduction
OPERATIONS MANAGEMENT
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 1
1.2
Chapter Coverage
Operations management in important
Operations management is about process
management
Operations processes have different
characteristics
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 1
1.3
Operations Management
Operations management is about how organizations produce
goods and services.
Definitions
The operations function of the organization is the
arrangement of the resources which are devoted to the
production and delivery of its products and services.
Operations managers are the staff of the organization who
have particular responsibility for managing some, or all, of
the resources which comprise the operations function.
Operations management is the term used for the activities,
decisions and responsibilities of operation managers
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 1
1.4
Materials Operations
management is
Information concerned with Products and
producing and services
Customers delivering products
and services
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 1
1.5 Back office Kitchen unit
operation in manufacturing
a bank operation
Take-out /
Retail restaurant
operation operation
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 1
1.6
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 1
1.7
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 1
1.9 Table 1.1 The activities of core functions in some organization
Core functional Internet service Fastfood chain Furniture
activities provider manufacturer
Marketing and - Promotes service - Advertise on TV - Advertise in
sales to users and get - Device magazines
registration promotional - Determine pricing
- Sell advertising materials policy
space -Sell to stores
Product/service - Device new - Design - Design new
development services and hamburgers, furniture
commission new pizzas, etc. - Coordinate with
information - Design dcor for fashionable colours
content restaurants
Operations - Maintain - Make burgers, - Make
hardware, software pizzas, etc. components
and content - Serve customers - Assemble
- Maintain furniture
equipments - Deliver furniture
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 1
1.10
Operations Management is About Managing
Processes - transformation processes
TRANSFORMED
ENVIRONMENT
RESOURCES
MATERIALS
INFORMATION
CUSTOMERS
TRANSFORMATION GOODS
INPUT OUTPUT AND
PROCESS
SERVICES
FACILITIES
STAFF
TRANSFORMING
RESOURCES
ENVIRONMENT
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 1
1.11
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 1
1.12
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 1
1.13
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 1
1.14 The output from most types of operation is a
mixture of goods and services
Pure goods
Crude oil production
Tangible
Can be stored
Aluminium smelting
contact
Can be transported
Quality is evident
Restaurant
Computer systems
services
Intangible
Management
Psychotherapy clinic
consultancy
Cannot be stored
Production and
consumption are
simultaneous
High customer contact
Cannot be transported
Quality difficult to
judge
Pure services
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 1
1.15
Process Hierarchy
All macro operations are made up many micro operations.
Micro operations have inputs.
Each micro operation produces outputs of goods and services
for the benefit of customers.
Within each micro operation there might be sections or groups.
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 1
1.17
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 1
1.18
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 1
1.19
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 1
1.20 A Typology of Operations
IMPLICATIONS IMPLICATIONS
Low repetition High repeatability
Each staff member Low Volume High Specialization
performs more of job Systemization
Less systemization Capital intensive
High unit costs Low unit cost
Well defined
Flexible
Routine
Complex High Variety Low Standardized
Match customer needs
Regular
High unit cost
Low unit costs
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 1