1. Type author names here © Oxford University Press, 2012. All rights reserved. Operations Management Introduction to Operations Management Jones & Robinson

2. Jones & Robinson: Operations Management Define what is meant by operations management Understand the nature of operations within an organization Explain what an operations manager does and the role he/she plays in an organization Discuss the similarities and differences between the manufacturing and service sectors of the economy Explain the similarities and differences between customer processing operations, materials processing operations and information processing operations Learning Objectives

3. Jones & Robinson: Operations Management An operation is a transformation process which changes inputs into outputs which add value for customers. What is an Operation?

4. Jones & Robinson: Operations Management Operations Management is the planning and organizing of the production of goods and delivery of services. What is Operations Management?

5. Jones & Robinson: Operations Management Simple Functional Divisional Conglomerate Hybrid Organizational Forms

6. Jones & Robinson: Operations Management Example Organizational Chart

7. Jones & Robinson: Operations Management What does an Operations Manager do?

8. Jones & Robinson: Operations Management Volume of output Variety of products or services offered Variation in demand Variability – the extent to which a product or service can be customized Characterizing Operations

9. Jones & Robinson: Operations Management 4V’s in the Restaurant Sector

10. Jones & Robinson: Operations Management Materials Processing Operations (MPO’s) usually referred to as manufacturing Customer Processing Operations (CPO’s) usually referred to as a service Information Processing Operations (IPO’s) usually referred to as services Types of Operation

11. Jones & Robinson: Operations Management Example – Motor Repair Service

12. Jones & Robinson: Operations Management Intangibility Heterogeneity (Variability) – the variety of responses consumers may have to a service experience Perishability- the inability of service providers to inventory their services Simultaneity (and Inseparability)- the co- production and delivery of a service in consumer’s presence Ref: Sasser, Wyckoff and Olsen (1978) Differences between CPO’s and MPO’s

13. Jones & Robinson: Operations Management Another way of thinking about the relationship between customers, information and transformational inputs is the so-called servuction system,. It recognizes that operations which process customers can do so in two ways- through their physical infrastructure and/or through their staff. A model of an operation that identifies the relationship between equipment and employees, and back of house and front of house. The servuction system

14. Jones & Robinson: Operations Management The Servuction System

15. Jones & Robinson: Operations Management Operations management is the planning and organizing of the production of goods and delivery of services. Operations is one of the core functions within an organization. (the others being HR, Finance, Sales & Marketing) An operations manager is responsible for short term operational activity, and long term development and investment in processes. Summary

16. Jones & Robinson: Operations Management Services differ from materials processing operations in four ways; intangibility, heterogeneity, perishability and simultaneity. This has a bearing on how these operations are managed. Summary