1. Define the term operations management
Operations management is the management of systems or processes that convert or transform resources into goods and services.
Definition of Operations Management
2. Explain operations management’s role in business
Operations management role in business is a fundamental one, encompassing many aspects of business life. It uses such things as production, production management, and transformation processes.
Source: Lecture Slides, C.Maker 2011
3. Describe the correlation between operations management and information technology
The correlation between operations management and information technology is that managers use I.T to heavily influence the operations management decisions that need to be made. (Source: Lecture Slides) These include questions such as:
§ What: What resources will be needed and in what amounts?
§ When: When should the work be scheduled?
§ Where: Where will the work be performed?
§ How: How will the work be done?
§ Who: Who will perform the work?
4. Explain supply chain management and its role in a business
Supply Chain management involves the management of information flows between and among stages in a supply chain to maximise total supply chain effectiveness and profitability. (Baltzan et al, 2010)
Source: Lecture Slides, C.Maker 2011
Supply Chain management plays a fundamental role in business as it allows the business to track and fully understand where their products are and what is happening to them. This essential aspect of business, allows a company to fully utilise their supplies and understand where there products are going and where the inputs are coming from. It enables ‘customers to order from retailers, who in turn order from distributors, who in turn order from manufactures, who in turn order from suppliers.’ (Baltzan et al 2010)
5. List and describe the five components of a typical supply chain
Source: Lecture Slides, C.Maker 2011
The five components of a typical supply chain are:
§ Plan: the strategic portion of supply chain management. A plan must be in place to manage all the resources that go towards meeting customer demand. This includes using the metrics to monitor the supply chain to ensure that the supply chain is both cost effective and effective with high quality and value delivered to its customers.
§ Source: The source in the supply chain includes the suppliers. A company must choose its suppliers carefully to ensure that deliveries are made on time. This includes developing a series of plans on pricing, delivery and payment for the suppliers.
§ Make: the make step in the supply chain is the actual manufacturing of the products/services. This may involve scheduling activities that are needed for production, packaging and delivery.
§ Deliver: The Delivery, or logistics, encompasses a set of process that plans for the efficient and effective transportation and storage of the products. Customers are able to place orders with the business, which can then be fulfilled during this step.
§ Return: this step can have problematic implications for the supply chain. Businesses must ensure that there is a network established for receiving products that may be viewed as defective or excess. They then must offer customer services in the form of supporting those customers who have returned an item to the business.
6. Define the relationship between information technology and the supply chain.
Information and technology has enhanced and furthered the supply chain and its five components. An advance in information technology has created a way in which the three segments of supply chains (Upstream, Internal and Downstream) can further be enhanced, allowing for quality products being delivered within an efficient time. It has also allowed for the development of new software to enhance the supply chain. This new software includes:
§ ‘Demand planning software: generates demand forecasts using statistical tools and forecasting techniques.
§ Supply Chain planning software – uses advanced mathematical algorithms to improve the flow and efficiency of the supply chain.
§ Supply chain execution software – automates the different steps and stages of the supply chain.’ – Source: (Baltzan et al 2010)
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