Unit 3 AOS 3 Operations management

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Presentation transcript:

Unit 3 AOS 3 Operations management KK 3.2 & KK3.3 Characteristics of LSOs in manufacturing and service organisations and elements of the operations system

Key elements of an operations system Inputs Transformation process Outputs

Characteristics of Manufacturing LSOs Transforms tangible inputs into finished goods Eg. Yakult Need to do POLC Inputs Transformation process Outputs

Key elements for a tangible product E.g. Yakult Inputs Transformation process Outputs Inputs (land, labour, capital, enterprising) Transformation process Outputs Sugar Milk powder Water Bottles Packing machines Convey belt Staff Raw materials Mixing the yakult drink products and pouring into bottles. Manufacturing process Packaged yakult drinks

Characteristic of Service LSOs Transforms intangible products into outputs Eg. Bank Need to do POLC Inputs Transformation process Outputs

Key elements of a service LSO E.g. Bank Inputs Transformation process Outputs Inputs (land, labour, capital, enterprising) Transformation process Output Staff Training Customer interface platform- bank branch? information Transferring product information to the customer Customer service Correct computer/customer interface system Service based process Transaction accounts Mortgage accounts Savings accounts Delivery of financial services to customer

Productivity and business competitiveness Regardless of whether the LSO produces goods/services the whole operations system is about making improvements in productivity (increasing productivity) through making inputs work smarter. Making improvements to productivity causes businesses to be more competitive. Technology and its application has mechanised operations in a manufacturing LSO

Productivity and business competitiveness Productivity improvements applied to service LSOs have seen services become more personalised to suit customers. Productivity improvements to service industries have influenced human resource management, how the organisation works, communication and customer service strategies.

Ch 3.3 Operations productivity and business competitiveness Competiveness through: Cost Quality Speed of delivery

How do LSOs improve productivity and business competitiveness? Combination of human and non-human aspects in the operations system Facilities design and layout Materials management Management of quality New technology

ESRM applied to Inputs Typical strategies applied to the input process: Procurement of inputs from ESRM suppliers Fair dealing with suppliers Environmentally sustainable inputs Reduce energy as an input Staff friendly facilities and technologies

ESRM applied to transformation process Use of labour Occupational Health and Safety procedures/policies Respect for rights of other parties (copy right laws) Disposal of waste materials Customer relations

ESRM applied to outputs Benefit to society Product safety and customer health Product reliability Sensitivity to community Product marketing