Operations management is concerned with managing processes to convert inputs into outputs like goods and services. The operations manager's role is to design processes and continually innovate to meet customer needs and expectations. Common innovation approaches in operations management include quality circles to improve processes, total quality management to embed quality in all processes, and business process reengineering to radically redesign processes and achieve dramatic improvements in areas like cost, quality and speed. New technologies like e-commerce have also driven innovation, allowing companies like Dell and General Motors to transform their operations and business models.
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Operations management is concerned with managing processes to convert inputs into outputs like goods and services. The operations manager's role is to design processes and continually innovate to meet customer needs and expectations. Common innovation approaches in operations management include quality circles to improve processes, total quality management to embed quality in all processes, and business process reengineering to radically redesign processes and achieve dramatic improvements in areas like cost, quality and speed. New technologies like e-commerce have also driven innovation, allowing companies like Dell and General Motors to transform their operations and business models.
Operations management is concerned with managing processes to convert inputs into outputs like goods and services. The operations manager's role is to design processes and continually innovate to meet customer needs and expectations. Common innovation approaches in operations management include quality circles to improve processes, total quality management to embed quality in all processes, and business process reengineering to radically redesign processes and achieve dramatic improvements in areas like cost, quality and speed. New technologies like e-commerce have also driven innovation, allowing companies like Dell and General Motors to transform their operations and business models.
Copyright:
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Download as PPTX, PDF, TXT or read online from Scribd
Operations management is concerned with managing processes to convert inputs into outputs like goods and services. The operations manager's role is to design processes and continually innovate to meet customer needs and expectations. Common innovation approaches in operations management include quality circles to improve processes, total quality management to embed quality in all processes, and business process reengineering to radically redesign processes and achieve dramatic improvements in areas like cost, quality and speed. New technologies like e-commerce have also driven innovation, allowing companies like Dell and General Motors to transform their operations and business models.
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Innovation and operations
management Operations management: It is an area of business concerned with the production of goods and services.
It is concerned with managing the process that converts inputs(materials,
labour, energy)into output (goods and services).
The operations manager’s role:
The nature of design and innovation in the context of operations: Design requirements: The objective of design is to meet the needs and expectations of customers. Good design therefore starts and ends with the customer. Marketing gathers information from customers to identify customer needs and expectations. Working with marketing, the product and service designer then designs a specification for the product and service.
All products and services can be considered as having
three aspects:
• a concept – the expected benefits the customer is buying;
• a package of component products that provides those benefits defined in the concepts, i.e. what the customer actually purchases and constitutes the ingredients of the design; and •The process, which defines the relationship between the component product and services by which the design fulfils its concept. Craft-based products: Unique gowns are hand-made by very skilled personnel and paraded at the fashion show (a new product launch). The flexibility and speed of response of the operation is therefore critical to the success of the organisation. Good marketing is also vital to avoid the end-of-season excess stocks that ambitious and unrealised sales can cause.
Design simplification The purpose of design is to develop things that satisfy needs and meet expectations of the customers. If the product is simple to make, the required quality management procedures will be less complex, easy to understand and, therefore, likely to be more effective. Process design and innovation: Innovation in the management of the operations process
Quality circles and process improvement teams:
A quality circle is a small group of voluntary workers who meet regularly to discuss Problems and determine possible solutions.
Members of quality circles are given training in quality control and
evaluation techniques.
An idea coming from a member of the quality circle is far more
likely to be adopted than an idea imposed from above. Total quality management (TQM) Is a business managememt strategy aimed at embedding awareness of quality in all organisational process. In a TQM all members of an organization participate in improving processes, products, services and the culture in which they work.
The basis of TQM is to reduce the errors produced during the manufacturing or service process, increase customer satisfaction, streamline supply chain management, aim for modernization of equipment and ensure workers have the highest level of training. One of the principal aims of TQM is to limit errors to 1 per 1 million units produced.
The TQM philosophy stresses the following points:
• meeting the needs and expectations of customers;
• covering all the parts of the organisation; • everyone in the organisation is included; • investigating all costs related to quality (internal and external); • getting thing right by designing in quality; • developing systems and procedures which support quality improvements; and • developing a continuous process of improvement. Quality function deployment (QFD)
Quality Function Deployment (QFD) is a structured approach to
defining customer needs or requirements and translating them into specific plans to produce products to meet those needs.
In particular QFD: • promotes better understanding of customer demands;
• promotes better understanding of design interactions;
• involves operations in the process at the earliest possible moment;
focuses the design effort. The ISO 9000 approach Many countries developed their own quality systems and standards and in 1994 these were ‘combined’ to become the International Standards Organisation ISO 9000-a set of standards governing documentation of a quality programme.
A qualified external examiner checks that the company complies with all the requirements specified and certifies the company.
ISO 9000 (2000) developed to include four additional
principles:
quality management should be customer focused;
quality performance should be measured;
quality management should be improvement driven; and
top management must demonstrate their commitment to maintaining and
continually improving management systems. Business process re-engineering (BPR)
Reengineering is a fundamental rethinking and radical redesign
of business processes to achieve dramatic improvements in cost, quality, speed, and service. Operations and technology The development of e-commerce and its impact on Operations.. Examples:
By 1998 Dell had over 25 per cent of sales
from the Internet and had become the largest manufacturer of business PCs in the world.
In 1999 General Motors Corporation offered 18,000 pages of information that
included 98,000 links to the company’s products and services
In 1990 sEncyclopaedia Britannica was leather-bound and found on most
library shelves. By the mid-1990s the same content was in CD form at less than 10 per cent of the bound volume price. In October 1999 the information was available free on the Web atBritannia.com, the required revenue coming from advertising alongside the data. Later,by 2001, the organisation withdrew the advertising and introduced a fee to access the Internet version. The products, the technology of the processes producing the product and the business strategy have all been changed in less than a decade. The organisation has clearly introduced change and innovation.
