Week 9/10 Blog Questions

OPERATIONS MANAGEMENT

1. Define the term operations management

Operations management (OM) - the management of systems or processes that convert or transform resources into goods and services. 

2. Explain operations management’s role in business

OM's roles in business include:

1. Forecasting
2. Capacity planning
3. Scheduling
4. Managing inventory
5. Assuring quality
6. Motivating and training employees
7. Locating facilities

OM is critical to an organisation because of its ability to increase value added during the process of transforming resources into a product or service. 

3. Describe the correlation between operations management and information technology

IT can influence OM decisions including productivity, costs, flexibility, quality and customer satisfaction. OM information systems enable managers to make well informed decisions in line with the goals and objectives of the organisation. Managerial and strategic decisions can be made based on OM information systems which affect the organisations, including:

What: what resources will be needed and in what amount?

       When: when will each resource be needed? when should the work be scheduled? when should materials and other supplies be delivered?

       Where: where will the work be performed?

       How: how will the product or service be designed? how will the work be done? how will resources be allocated?

       Who: who will perform the work?

   

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

A supply chain is a network of organizations and facilities that transforms raw materials into products delivered to customers

The customer orders from a retailer, who orders from a manufacturer who ordered from a distributor who received the item from a supplier. Customers are also able to order from each individual player without going through a retailer. IT allows the various players to communicate and transmit information to each other. 

Supply chain management integrates the key business processes, from original suppliers through to the end user ( the customer). For example if a retailer is only able to sell x amount of product the they need to communicate with other players to prevent over supply. 

5. What is the bullwhip effect, and how can it be avoided?

Bullwhip effect -occurs when distorted product demand information passes from one entity to the next through the supply chain. The variability in the size and timing of orders increase at each stage up the supply chain, from customer to supplier creating excess inventory and increasing costs. IT allows greater visibility in the supply chain, managers are able to view their suppliers' and customers' supply chains. High visibility creates competitive advantage for an organisation. 

6. How does technology assist in supply chain management?

Technology advances have significantly improved companies’ forecasting and business operations

Integrated Systems provide companies with greater visibility over the supply chain inventory levels

IT’s primary role is to create integrations or tight process and information linkages between functions within an organisation