© Cambridge University Press 2012 OPERATIONS MANAGEMENT FUNCTION AREA OF STUDY 3 UNIT 3 CORPORATE MANAGEMENT CHAPTER 7 OPTIMISING OPERATIONS

© Cambridge University Press 2012 The aim of the operations manager The aim of the operations manager is to extract maximum amounts of productivity at the highest levels of quality from the production process, while at the same time, achieving the organisation’s ethical and social responsibility objectives.

© Cambridge University Press 2012 Facilities design and layout Strategies that may be adopted include the following: Facilities design and layout Optimising the use of physical space. Making the best use of equipment, including a program of regular maintenance.

© Cambridge University Press 2012 Facilities design and layout (cont.) Appropriate layout of plant and equipment and thus streamlining the production process.

© Cambridge University Press 2012 Types of layout Types of layout: Fixed position – product remains in one position Process/functional – like processes/equipment grouped together Product – assembly line where product moves

© Cambridge University Press 2012 Types of layout (cont.) Mass customisation Cell production Consideration must also be given to employee work environment (ergonomics) and occupational health and safety Other system changes may include adoption of lean manufacturing and virtual factory model.

© Cambridge University Press 2012 Introduction of technology Introduction of technology Offers greater efficiency and quality. Some examples include CAM, CNC, robotics and virtual offices.

© Cambridge University Press 2012 Materials and supply chain management Including: Inventory management systems, e.g. JIT Computerisation Sourcing and maintaining a regular and reliable supply of high-quality inputs.

© Cambridge University Press 2012 Management of quality programs There are three types: Quality control – reactive checking at end of a process or of completed product

© Cambridge University Press 2012 Management of quality programs Quality assurance – building quality into work processes to prevent errors before they can occur Total Quality Management.

© Cambridge University Press 2012 Social responsibility Programs are important to gaining and maintaining competitiveness. Some examples include waste minimisation, reduction of emissions, enhanced employee and community quality of life, business sustainability.