Operations Management

Four common functional areas

•      Marketing

•      Operations

•      Finance

•      HR (Human Resources)

Operations Management

•      This describes the activities, decisions and responsibilities of managing production and delivery of products and services.

What do operations managers/management do?

•      Manage the conversion of inputs into outputs (raw materials, capital, labour into the final product or service).

•      Good vs Service

•      Good = physical

•      Services = Not physical

What decisions might operations management make or take?

•      The level of output (capacity/scale).

•      Range of products/Levels of customer service/How many different versions/The degree of choice for the customer.

•      How best to provide the good or service (online, high street, both).

•      How much of the process should be managed through other providers (outsourcing) (supply chain) (upstream vs downstream).