OPERATIONS MANAGEMENT STRATEGY 1. PRODUCT CHOICE 2. PROCESS CHOICE 3. FACILITIES CHOICE 4. QUALITY CHOICE

 What do you think the “Process choice” means in the operations management of a business?

Operations managers need to make decisions about the types of technologies to be used, the flow of the production processes and the overall capacity of the production process  Process Technologies:  The technology used to transform inputs into goods and services  Examples -Machinery, equipment (computer controlled manufacturing systems)

 Research and Development (R & D)  The search for improvements and innovations in process technology and in goods and services with a view to making new products  Must play a vital role in management’s planning of new process technology  Without funding R & D competitors are likely to gain an edge and be more successful

 Define the following terms (p. 249). a) CAD b) CAM c) FMS d) EDI e) CIM Activities page 250 (1-5) What you don’t finish becomes HW

 Success in operations depends on the efficiency achieved by the organisation’s staff in using its facilities  However, management must also plan for realistic events that may occur in production process such as equipment breakdowns, delays in delivery etc.

 MORE INFORMATION PAGE 250 of text  Process Flow involves developing detailed specifications of the physical facilities as well as human skills and effort required to produce the desired volume  Design and layout of business must also accommodate the different production processes an organisation is likely to use ▪ Read p. 250 and answer Q 1 p. 251

Capacity is the amount the organisation can produce under normal circumstances Operations Managers, no matter what the industry will always look to improve their businesses capacity

 Activities 1 -2 page 251 (2 nd lot of activities on the page)