Introduction to

Operations
Management
EFIM30014 – Operations Management

Dr Aniekan Essien
Lecturer in Business Analytics
G.04 11-13 Tyndall’s Park Road
aniekan.essien@bristol.ac.uk
Weekly Outline

1. What is Operations Management (OM)

and why is it important?

2. How we describe operations as

processes – ITO

3. Understanding operations using the

Four Vs.
Learning Outcomes

1. Define Operations Management (OM)

and its importance within business
organisations.
2. Describe operations using the input-
transformation-output process.
3. Discuss the characterisation of
operations using the four Vs.
Section 1
Introduction to Operations Management
What is Operations Management?

“How organisations create and deliver products and services”

- Slack and Brandon-Jones (2019)

Slack, N. and Brandon-Jones, A., 2021. Operations

management. Pearson Education, Inc.
Operations Management - Definition
▪ The activity of managing the ▪ The business function
resources which are devoted responsible for planning,
to the production and delivery of coordinating, and controlling
products and services. the resources needed to
produce a company’s products
▪ The operations function is and services.
essential to every organisation
to ensure high-quality, low cost
and environmental impact.
What are Operations?
▪ The basic task of operations is ▪ The physical processes by
to take inputs in the form of which companies take in raw
resources and convert them materials, convert them into
into outputs in the form of products and then distribute
products and services. This them to customers. It is a vital
conversion, therefore, is at the part of the business process
core of operations and and ranks highly in the
comprises the basic workflow responsibilities of
throughout any organisation. management.’ Financial Times
Hill (1993) (1997)

Hill, T (1993). The Essence of Operations Management, Prentice Hall

Financial Times (1997). Mastering Management Series, FT Pitman
A Simple Transformation Model

Inputs Outputs

Energy Goods
Materials Services
Transformation
Skills Knowledge

Process flow
Importance of OM
▪ Operations are everywhere!

▪ Easier to visualise the operations function in

some, than others.

▪ Any business that creates, must do so using a

set of resources and therefore must have
operations.

▪ The importance of OM in business organisations

is to effectively manage, control and supervise
goods, services and people.
Importance of OM NOW
OM in Organisations
▪ Automobile Assembly: Operations
management uses machines to efficiently
assemble products that satisfy current
customer demands.
OM in Organisations
▪ GP (Physician): Operations
management uses knowledge to
effectively diagnose conditions in order to
treat real and perceived patient concerns.
OM in Organisations
▪ Management Consultant: Operations
management uses people to effectively
create the services that will address
current and potential client needs.
OM in Organisations
▪ Disaster Relief: Operations
management uses people to effectively
create the services that will address
current and potential client needs.
OM in Organisations
▪ Advertising Agency: Operations
management uses our staff’s knowledge
and experience to creatively present
ideas that delight clients and address
their real needs.
Operations in Practice
Equipment

Location
▪ How many different operations
can be observed?
▪ How can these operations be
described?
▪ How to tell if the shop is operating
well/performing well?
▪ How should it change over time or
be improved?
Reduce
Waste
Service
 Summary for LO1
▪ Operations management describes
how organisations create and
deliver products and services.
▪ The importance of OM is to Define Operations
effectively manage, control, and
supervise goods, services, and Management (OM)
people. and its importance
▪ Operations management reduces within business
cost, ensures customer satisfaction, organisations.
as well as ensures good product
quality.
Section 2
How we describe operations as processes –
ITO
OM – a study of processes

What is a process?

In operations management:
“A process is something with an input, a transformation, and
an output.”

Slack, N. and Brandon-Jones, A., 2021. Operations

management. Pearson Education, Inc.
Slack’s model of Operations Management

Slack, N. and Brandon-Jones, A., 2021. Operations

management. Pearson Education, Inc.
Transformed/Transforming Resources

▪ What is transformed, and what (or

who) does the transforming….to
create what output?

▪ Transformed resources are treated,

changed, or transformed in the
operations process

▪ Transforming resources act upon

the transformed resources.

▪ Outputs are products and services

that add value for customers

Adapted from Slack and Brandon-Jones (2019)

 Prêt A Manger
Served and
• Ingredients satisfied
• Packaging
customers
• Customers

• Equipment
• Fittings
• Staff

Adapted from Slack and Brandon-Jones (2019)

Activity
▪ What are the inputs and
outputs to the listed
operations:
▪ Salon
▪ Bus
▪ Gym
 Summary for LO2
▪ A process is something with an input, a
transformation, and an output (ITO).

▪ Slack’s model of Operations

Management describes operations
using ITO and transforming
/transformed resources.
Describe operations
▪ Transformed resources are treated,
using the input-
changed, or transformed in the transformation-
operations process.
output process.
▪ Transforming resources are those
resources that act upon the
transformed resources.
Section 3
Four Vs Analysis
Characterising Processes – the 4 Vs
▪ Although all processes are
similar, they can be typified Low Volume High
High
using four dimensions:
▪ Volume
High Variety Low
▪ Variety

High Variation in demand Low

▪ Variation in demand, and

▪ Visibility (to the customer)

High Visibility Low

Adapted from Slack and Brandon-Jones (2019)

Which is more expensive?

Delivery from local Container shipping delivery

store to your house? from Shanghai to Southampton?
Characterising processes – Volume &
Variety
Low Volume High
High

High Variety Low

Characterising processes – Volume &
Variety
Low Volume High
High

High Variety Low

Characterising processes – Volume &
Variety
Low Volume High
High

High Variety Low

Characterising processes – Variation
▪ Changes in the demand
patterns

▪ Operations must change

its capacity to
accommodate the change
in demand

▪ Organisation must try to

predict these levels of
demand High
Variation in demand
Low

High Visibility Low

Characterising processes – Visibility
▪ How visible the operations
are to customers.

▪ In high-visibility operations,
customers directly
experience most of the
‘value-adding’ activities

▪ In high variety, customers

can ask whatever they Variation in demand
like! High Low

High Visibility Low

Characterising processes – 4Vs
▪ All Vs affect the cost of
product/service delivery.

▪ High Volume, Low

Variety, Low Variation,
Low Visibility = Low cost

▪ Typology of operations

Adapted from Slack and Brandon-Jones (2019)

 Summary for LO3
▪ Although all processes are similar, they
can be characterized using four
dimensions – volume, variety,
variation in demand, and visibility (to
the customer).

▪ The cost of product/service delivery is

Discuss the
impacted by all the Vs. High volume, characterization of
low variety, low variation, low visibility =
Low cost. operations using the
▪ High volume, low variety operations are four Vs.
typified by high repeatability, capital
intensive, and involves high unit costs.
Summary for Today
1. Operations management is the activity of
managing the resources devoted to the
production & delivery of products/services.

2. Operations managers manage transformation

processes, with inputs and outputs.

3. Although all processes are similar, they can be

characterized using four dimensions – volume,
variety, variation in demand and visibility (to
the customer).
Reflective Questions
1. What is operations management?
2. Why is operations management
important in all types of organisation?
3. What are decisions that operations
managers make?
4. As an operations expert, how would
you manage the NHS backlog better?