1. OPERATIONS MANAGEMENT
Anything concerned with the production, storage and delivery of goods
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2. WHAT IS AN OPERATING SYSTEM?
Procedures must be established which control and direct what is done, whom it is done by and when
Access to raw materials, machines and workers does not guarantee that you will obtain the outcomes you require – organisation is essential
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3. OPERATIONS MANAGEMENT - DESCRIPTION
Concerned with the way organisations produce goods and services
It shows the way in which a company transforms resources into goods and services
Core Activity of the organisation as it actually produces the goods or services that the company sells
OUTPUTS (GOODS AND SERVICES)
INPUTS (RESOURCES)
PROCESS
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4. OPERATIONS
Name given to the process of transforming inputs into finished goods
An organisation’s product is the goods or services it supplies to customers
The goods and services must meet the needs of the customers
To fulfil these needs the producer must use market research to find out what the customer wants
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5. OPERATING SYSTEMS All operating systems have three distinct phases
INPUTS PROCESS OUTPUT
Raw Materials Using different The actual
amounts of different goods or
Labour resources in order to services for
produce a different sale
end product
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6. OPERATIONS MANAGEMENT
Broken into key areas
Planning
Production
Purchasing
Warehousing and storage
Distribution/logistics
Each will interact with the other functional areas of the business – Human Resources for staff, Marketing for information on what the consumer wants, Finance for the cost of their materials
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7. PRODUCTION PLANNING
Successful planning is essential to the success of operations management and for the organisation to achieve its objectives
Need to create a production system that will most efficiently produce the goods for output
Production should be at a constant level (the exact number of workers required, the materials to be used and the number and type of machinery will be known in advance
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8. Ideal production planning
Production Level &
Maximum Output
OUTPUT
WEEKS 1 -10
Ideally production should be at a constant level at the maximum it can produce.
The exact number of workers required, the materials used and the type of machinery will be known in advance
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9. Reality
OUTPUT
Maximum Output
Production Level
Weeks
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10. REALITY
Production is more likely to vary over time because of changes in consumer demand
Staff shortages
Machine breakdown
Machine maintenance
Need to have a flexible production system
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