Operations management defined

Operations management is the activity

of managing the resources which are
devoted to the production and delivery of
products and services.

The consultancy services market – % of world Back office operation Kitchen unit
revenues of 40 largest consultancy firms in a bank manufacturing
operation

Financial
6
Marketing / sales
2 They are
Organizational
design
all
11
Operations and process
management
Retail operation
operations
31
Take-out / restaurant
Benefits / actuarial operation
16

IT strategy Corporate strategy

17 17

The operations function is fashionable!

A general model of
The operation’s
The best way to start understanding the nature of operations strategic
‘operations’ is to look around you management objectives

Transformed Operations The operation’s

Operations
resources … strategy competitive role
Everything you can see around you (except the flesh and strategy
and position
blood) has been processed by an operation Materials
Information
Customers
Every service you consumed today (radio station, bus Design Improvement
Output
service, lecture, etc.) has also been produced by an Input
Operations
products
management Customers
operation resources and
services
Planning
Transforming
and
Operations Managers create everything you buy, sit on, resources …
control
wear, eat, throw at people, and throw away Facilities
Staff
Some interfunctional relationships between the operations
function and other core and support functions
Engineering/ Product/service
Understanding of the
technical capabilities and development
function constraints of the function
operations process
Analysis of new
technology options Understanding of
process technology
Accounting needs New product and
Provision service ideas
and finance
function of relevant Understanding of the
capabilities and
"
data
Operations constraints of the
Financial analysis function operations process
for performance
and decisions Market
requirements
Marketing
Understanding of human
Understanding Provision of systems for
function !
resource needs design, planning and
of
Recruitment infrastructural control, and improvement
development and system
and training needs #
Human Information
resources technology
function (IT) function

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