Type author
Jones
& Robinson
names here
Operations Management
Introduction to
Operations Management
© Oxford University Press, 2012. All rights reserved.
Learning Objectives
• Define what is meant by operations management
• Understand the nature of operations within an
organization
• Explain what an operations manager does and the
role he/she plays in an organization
• Discuss the similarities and differences between the
manufacturing and service sectors of the economy
• Explain the similarities and differences between
customer processing operations, materials processing
operations and information processing operations
Jones & Robinson: Operations Management
What is an Operation?
• An operation is a transformation process
which changes inputs into outputs which
add value for customers.
Jones & Robinson: Operations Management
What is Operations Management?
• Operations Management is the planning and
organizing of the production of goods and
delivery of services.
Jones & Robinson: Operations Management
Organizational Forms
•
•
•
•
•
Simple
Functional
Divisional
Conglomerate
Hybrid
Jones & Robinson: Operations Management
Example Organizational Chart
Jones & Robinson: Operations Management
What does an Operations Manager do?
Jones & Robinson: Operations Management
Characterizing Operations
• Volume of output
• Variety of products or services offered
• Variation in demand
• Variability – the extent to which a product or
service can be customized
Jones & Robinson: Operations Management
4V’s in the Restaurant Sector
Jones & Robinson: Operations Management
Types of Operation
• Materials Processing Operations (MPO’s)
usually referred to as manufacturing
• Customer Processing Operations (CPO’s)
usually referred to as a service
• Information Processing Operations (IPO’s)
usually referred to as services
Jones & Robinson: Operations Management
Example – Motor Repair Service
Jones & Robinson: Operations Management
Differences between CPO’s and MPO’s
• Intangibility
• Heterogeneity (Variability) – the variety of
responses consumers may have to a service
experience
• Perishability- the inability of service providers
to inventory their services
• Simultaneity (and Inseparability)- the coproduction and delivery of a service in
consumer’s presence
Ref: Sasser, Wyckoff and Olsen (1978)
Jones & Robinson: Operations Management
The servuction system
• Another way of thinking about the relationship
between customers, information and
transformational inputs is the so-called
servuction system,. It recognizes that
operations which process customers can do
so in two ways- through their physical
infrastructure and/or through their staff.
• A model of an operation that identifies the
relationship between equipment and
employees, and back of house and front of
house.
Jones & Robinson: Operations Management
The Servuction System
Jones & Robinson: Operations Management
Summary
• Operations management is the planning and
organizing of the production of goods and delivery of
services.
• Operations is one of the core functions within an
organization.
(the others being HR, Finance, Sales & Marketing)
• An operations manager is responsible for short term
operational activity, and long term development and
investment in processes.
Jones & Robinson: Operations Management
Summary
• Services differ from materials processing operations
in four ways; intangibility, heterogeneity, perishability
and simultaneity. This has a bearing on how these
operations are managed.
Jones & Robinson: Operations Management