Chapter 6Chapter 6

OM, previously known as productions management is the management of resources to achieve efficient output of goods or services.

It involves the management of systems or processes that result in goods or services.

The OM department is a functional department. It aims to maximise the levels of productivity and quality through the operations process.

Operations refer to the actual work done in transforming inputs and thereby preparing and delivering goods and/or services for sale.

SALE!!!

Operations management involves all the management functions of:

Planning Organising Leading Controlling

•Strategic•Tactical

•Operational

Page 134

The role of an operations manager covers many areas. These include: Ensuring the operations system is

meeting the operational strategy and objectives as a whole.

Making strategic decisions relating to planning and designing an operating system.

Operating the system.

Page 135

Operations is a series of processes and procedures undertaken in order to create outputs.

Operations is the actual work done by an organisation in preparing goods and services for sale.

Operations systems will typically operate as follows:

Operations – Inputs – resources (raw materials,

labour, capital, technology, etc) used in any organisational production system.

Transformation – the process involved in turning inputs into outputs.

Outputs – the final product as a result of the transformation of inputs.

1. Outline the six types of inputs.2. How does POLC relate to the

transformation process?3. Which variables will impact the

transformation process?4. How does the transformation process

differ between a manufacturing organisation and a service provider?

Pages 137 – 139

5. Outline the differences between goods and services.

6. Explain the link between an organisations outputs and its competitiveness.

7. Activity 6.2 (page 140)