2. 2
Lesson Objectives:
Understanding of Operations
Management as an system of inputs,
processes and outputs
Understanding of why different types
of production may be chosen by
managers
7. 7
Operations Management
Operations Management is a
transforming process turning inputs
(resources) into outputs (goods and
services)
The key here is efficient management
of resources
8. 8
Operations Management
A Transformation Process
PROCESSINPUT OUTPUT
Information
Finance
People
Materials
Machinery
Goods
Services
Customer/Employee
Satisfaction
9. 9
Some Product Thoughts
Deluxe Double Chocolate Chip Cookies
Freddie’s Fish
Collette’s Computer Manufacture
Krazzy Kazz’s Cars
10. 10
Input Issues
Best Price
Reliability of Suppliers
Delivery Times
Quality
Quantities Available
Storage Space (Raw Materials)
11. 11
Process Issues
Average Demand per Week
Production Capacity Available
Working Procedures (eg H&S)
Storage Space (Finished Product)
Efficiency/Productivity
Payment Systems
Quality
Stock Control
12. 12
Output Issues
Packaging Individual/Groups of
Items
Nature/Size of Containers
Storage Space (Before Despatch)
Organising Customer Orders
Transportation (Storage/Customers)
Customer Requirements
13. 13
A Complicated Function
Operations Management is a
complex area which can be further
broken down into the following key
areas:
A) planning
B) production
C) purchasing
D) storage and stock control
E) distribution/logistics
14. 14
Planning
To be most efficient production
should take place at a constant level
15. 15
Planning
In reality this is not possible:
Consumer Demand
Staff Shortages
Machinery Breakdowns
Maintenance
16. 16
Production Systems
How will the manufacturer produce goods?
Start with the factory layout - where will each part
of production take place? Who will complete?
The splitting up of production into a number of
different jobs is called the division of labour
A successful system will need a flow of stocks
from one job to another to make sure that there
are no delays due to shortages or bottlenecks
17. 17
What Production System?
The Nature of the Product
Washing Machines
Bread
House
Atlas
Farming
New Bridge
18. 18
What Production System?
Market Size
Where the firm is producing large numbers of
standard products the production can be
simplified eg Irn Bru
Customised products for individual clients
need a great deal of client input eg customised
software or stained glass windows
20. 20
What Production System?
Business Development
Small firms, small productions,
production system limited eg Wallace &
Gromit Cheese
As firms grow they can increase their
capacity and produce a greater variety
of goods
21. 21
What Production System?
Labour Intensive Systems
A labour intensive system is one which
relies more heavily on its workforce
than machinery
‘Tattie Holidays’
Strawberry Picking
Clothing Promotion
22. 22
What Production System?
Labour Intensive Systems
Labour is cheaper than machinery
Skill in craftsmanship required
Can’t use machinery - working
environment
Ability required to think/reason/use
initiative/make decisions
Flexibility in production
23. 23
What Production System?
Capital Intensive Systems
A Capital Intensive System is most
common when:
Supply of labour is limited
Production benefits from machine
efficiency and consistency
Production is routine and repetitive
24. 24
Automation
CAM (Computer Aided Manufacture)
CAD (Computer Aided Design)
Robotics
Allows firms to design, develop and
produce products with high quality
Ability to make a wider range of similar
products to appeal to different segments
of the market
25. 25
Automation
Advantages
Complicated tasks completed quickly
High accuracy
Less waste
Quality consistent
Disadvantages
Machinery is more likely to break down
Narrow range of tasks
26. 26
Sony Walkman
At present, Sony has at least 12 different
versions of the Sony Walkman on the market.
Each has the same basic features, all of
which are made on the same production line.
Using technology in the design and
production of the Walkman can add different
features to each models to appeal to different
consumers.
Prices vary as more advanced features are
added.
28. 28
Activities
Wallace & Gromit - Stinking Bishop
Research and produce a short report on
the production of the cheese Stinking
Bishop and the Wallace & Gromit effect
29. 29
Activities
Sony Walkman Research
The Sony Walkman has evolved over the
years resulting in products unconceivable
20 years ago
Create a short report detailing the current
range of ‘Walkmans’, their features and
what market they would appeal to
