Lesson 1: Operations Function and its relationship to objectives

• Explain the operations function and its relationship to business objectives and business strategy!

!• Describe the characteristics of operations management

within large-scale manufacturing and service organisations!

!• Explain the difference between tangible and intangible

products

What you need to know and be able to do

Operations management is all about manufacturing the product (for a manufacturer) or creating the service (for a service provider). Without a product, the LSO would not achieve its objectives.!

What activities would operations management involve?

The operations function or purpose is to transform inputs (resources) into outputs (goods and services)

Business Objective Operational strategy to achieve objectives

Increase productivity, raise the amount of output for each unit of input

Purchase new equipment that can package in half the time

Increase business competitiveness e.g.

produce better quality product faster

Reject defective products earlier in production process

Tangible and intangible products

Tangibles are goods, which can be touched.

Intangibles include services, which cannot be touched

Role of the operations manager

Exit Question

Explain the relationship between operational objectives, operational strategy and the operations manager.

Answer should state:!! •! An operational objective is an operational goal or aim that an organisation plans to achieve.!! •! An operational strategy is a plan of action to achieve operational objectives.!! •! The operations manager is responsible for converting operational objectives into operational strategies.!!Award 1 mark for each link stated.