Operations Management Comprehensive Breakthrough

For the subject of comprehensive management, we get to make important decisions.  Why is that?  We think of the ten important areas first which are:

1.) Product and service design
  • What product will we sell?
  • How will we design the product?
  • How will the service be carried out?

2.) Quality management
  • Who is in charge of quality?
  • How do we define quality?

3.) Process and capacity design
  • How will processes be carried out?
  • What kind of capacity is needed?

4.) Location
  • What location will be the best for operations? 
  • Using the center of gravity and break-even method can help.

5.) Layout
  • What kind of layout will work best for operations for efficiency and effectiveness?

6.) Human resources and job design
  • What kind of work can be carried out?
  • How do we train human resources?
  • What job designs are needed to finish the job?

7.) Immediate and short-term planning
  • What plans are for short term, intermediate and long term?
  • Divisions can be weekly, monthly, quarterly, semi-annually and yearly.
  • Long term can go beyond one year.

8.) Inventory management of supplies
  • How much inventory do we need? (ex. faced with problems of perishable goods)
  • How do we get rid of excess inventory?
  • Using a forecasting method to be more or less accurate to minimize waste.

9.) Supply chain management
  • Produce our own supplies or buy them?
  • Who are our good suppliers and how many do we need?
  • Where do we get effective and efficient supplies?

10.) Maintenance
  • Who is in charge of maintenance?
  • How often should maintenance be done?

For the variety/volume models.

Very low variety- Service factories- Continuous
Low variety- Mass service- Mass production
Medium variety-Batches-Service shops
High variety-Jobbing-Professional service
Very high variety-Projects-Professional service

How to do the process of strategy:
  1. Analyze vision
  2. Examine mission
  3. Examine objectives
  4. Formulate strategy (based on SWOT, Five Forces, PESTLE)
  5. Implement strategy (consider finances, people, resources in doing so)
  6. Strategic control
  7. Going back to mission the cycle repeats

Value chain analysis:

Primary: Inbound, Manufacturing, Marketing, Service
Secondary: Technology, Human Resources, Infrastructure, Procurement
Both have margins

Product vs. Service

Product is not always immediately consumed, can have a resell value depending on what kind of product, can be inventoried, lower customer interaction.

Service is produced and consumed at the same time, can't be resold, can't be inventoried, higher interaction, needs more knowledge and very location bound.

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