TOPIC 4 THE OPERATIONALS MANAGEMENT FUNCTION Lesson 1

Next SAC Chapter 4 It contributes 100% of the total marks (40) allocated for this outcome. This task will be marked out of 40. You have 60 minutes to complete the task. You can access a one page cheat sheet. It will be case study based.

OPERATIONS MANAGEMENT DEFN – The design and operation of the system within an organisation that creates the goods and provides the services. Operations management function – carried out by that part of the organisation directly involved in producing the goods and services. The focus on the processes which organisations follow to create their final output.

OPERATIONS SYSTEM AND PROCESS Every Organisation has an operations system Resources are the inputs. Inputs are transformed to make the final product. The inputs when transformed become the outputs. The process of transformation reflects the organisational objectives outlined in the planning stages.

ILUKA ILUKA ILUKA Extraction of mineral sands and transformation to zircon into 1 ton bags suitable for export. Rehabilition of the land / environment following mining process. INPUTS Transformation Process OUTPUTS

INPUTS Resources that are used to produce the goods or services ( G & S) Inputs determine the quality of the outputs. ILUKA Operating at Kulwin near Hopetoun is considered a remote location. Accommodation, food, services and the need to keep experienced personnel happy. – An Operations Manager’s nightmare.

The 6 Categories of Inputs People Facilities & Equipment Materials Finance Information Time

People The employees are often considered the most valuable resource in the operations system. WHY? __________________________________ __________________________________ __________________________________ Customer needs (demand) or trends in buying habits determines final output of G & S.

Facilities and Equipment Deakin University Jan Major refurbishment to library. Deakin University 1977 Library and Commerce Faculty building opens for business! P F Hughes 1968 Kombi ( I wish I still owned it but I wore it out!)

Facilities and Equipment The buildings, machinery, equipment and technology that an organisation has are crucial to its efficiency and effectiveness. The operations system controls this. Using the latest technology results in efficient and effective results of the organisations time and resources. Using refurbished buildings creates a better place to work. Eg Deakin Library

Facilities and Equipment Universities today are in a competitive marketplace. Libraries form the heart of a study environment with computer facilities, meeting rooms, coffee shops and yes, books. The upgrade at Deakin University library in Geelong ensures that it stays competitive. Pictured are 2 students from the Grad Dip Ed course I did last year in the winter semester break.

Materials Raw Materials – eg Mineral sands Components – Vehicle manufacture Services – Deakin library (staff, books, computer labs etc) These are the inputs in the transformation process that determine the final G & S

Finance The cash that is required to purchase the initial inputs and to operate the transformation process. ASX corporation uses shareholders to raise funds. Deakin University receives fees from students to finance its library renovations.

Information Data collected by organisation’s that can assist its development and aid plans and procedures. Operations uses this information in the transformation process. Deakin University (keep library records to see how students and staff use the library)

Time As an input in the production of G & S Efficient organisations realise time is crucial in achieving their goals. ILUKA – loses A$800K per day when the mineral sands plant at Kulwin isn’t operating.

Process An activity that the organisation undertakes that transforms inputs into outputs. The efficient use of inputs to create the most effective outputs. Human Capital (labour) is organised and raw materials are altered through the transformation process.

Process The process of a student obtaining an undergraduate degree or post grad qualification at Deakin may be inconvenienced by the building works that are happening at the moment. In the long run, the facilities will be better and Organisational Managament knows it has to upgrade the facilities to remain competitive.

Process Operations Manager Makes the big decisions. Uses technology to improve the efficiency of the organisation. Deakin – replaces all computers every 2 years. Old machinery is donated to schools in India. Deakin – Operations Management rolls out the new technology as part of senior managements plan to remain competitive in the University education market.