Week 9 Questions

1.Define the term operations management


Operations management is the management of systems or processes that convert or transform resources (including human resources) into goods and services. It is responsible for managing the core processes use to manufacture goods and produce services.

The below video explains Operations Management in great detail:

2.Explain operations management’s role in business


OM ‘s role in business is to manage all business processes and to ensure that all goods and services are produced in an efficient and effective manner. Activities for OM include forecasting, capacity planning, scheduling, managing inventories, assuring quality, motivating employees, deciding where to locate facilities etc. All this will ensure that satisfaction of customers is achieved. The success of a business depends on planning for both short and long term activities and the ability for managers to make informed decisions. This all comes from the management of the business operations.

3.Describe the correlation between operations management and information technology


It can be used when it comes to productivity, costs, flexibility, quality and customer satisfaction. Well-developed OM information systems can ensure management are aware of all possible outcomes and ensure they make the correct decision. It can help them perform ‘what if analysis’, sensitivity analysis, drill down and consolidation, therefore IT is very important.

OM managers use IT to make decisions on things including;

-What: What resources will be needed and in what amounts?

-When: When should the work be scheduled?

-Where: Where will the work be performed?

-How: How will the work be done?

-Who: Who will perform the work?

(Baltzan et al 2010 pp 356)

4.Explain supply chain management and its role in a business


Supply chain management involves the management of information flows between and among stages in a supply chain to maximise total supply chain effectiveness and profitability. (Baltzan et al 2010 pp 262)

Knowing immediately what is transacting at

the customer end of the supply chain, instead of waiting days or weeks for this information to flow upstream, allows the organization to react immediately- therefore being crucial within a business.

5.List and describe the five components of a typical supply chain the five components of a typical supply chain are:

-Plan: A company must have a plan to manage all resources that go towards meeting customer’s needs. This is the strategic portion of supply chain management. This is where metrics are established to monitor supply chain so that it is working in the most efficient manner.

-Source: choosing the best supplier is important they must be reliable and produce great products that will meet your consumer needs. Organisations need to create metrics in regards to pricing, delivery and payment to help strengthen their relationship with suppliers and enable efficiency with them.

-Make: When companies produce their own products or services. This includes planning activities for production, testing, packaging and delivery.

- Deliver: Relates to logistics (set of processes that plans and controls effective transportation and storage of supplies from suppliers to consumers.

-Return: This is where companies create a network for receiving defectives and excess products and support consumers who may have issues with their products.

6. Define the relationship between information technology and the supply chain.

IT has helped in advances in the five SRM components and improving the efficiency of companies and ensuring that consumers are getting the best possible product, the best possible way and in the correct time frame. Integrated systems have also provided companies with greater visibility over the supply chain inventory levels ensuring they have clear knowledge of each process and ensure that everything is running smoothly. IT’s primary role in a business is to create integrations and information linkages between functions within an organisation.