Operations management is the management of turning raw inputs and resources into goods and services.
Explain operations management’s role in business
Operations management's role in business is to direct the main processes and measures, which are used to produce manufactured goods, products and services.
Other roles include:
-Forecasting
-Capacity Planning
-Scheduling
-Managing Inventory
-Motivating and Training Employees
-Assuring Quality
-Locating Facilities
Describe the correlation between operations management and information technology
In order for operations management to operate properly, operation's managers must oversee IT departments, which bring in information from all over the world in order for products to be produced effectively and efficiently. Managers use IT to heavily influence Operational Management decisions. To do this they follow and answer 5 key questions;
-What: What resources will be needed and in what amounts?-When: When should the work be scheduled?
-Where: Where will the work be performed?
-How: How will the work be done?
-Who: Who will perform the work?
As well as this Information Technology makes sure that the competitive operational management decisions run according to plan. They are used to describe various processes to which a company is able to add value to these decisions. These decisions being;
-cost
-quality
-delivery
-flexibility
-service
So in saying all of this all the decisions listed result in the many options being available and that they generate influence on profits and costs.Explain supply chain management and its role in a business
Supply chain management refers to the management of information flow between and among the stages in a supply chain to maximise total supply chain effectiveness and profitability. It's role in business is significant in that it manage's raw materials, productions, the change in supply and goods and services.
List and describe the five components of a typical supply chain
Plan- The plan is the strategic portion of the supply chain and is essential in making sure that the supply chain is efficient, cost effective and delivers high quality and value to its customers.
Source- It's important that companies choose reliable suppliers, who will deliver the goods and services that are required for making products. It is also essential that companies create a set of pricing, delivery and payment processes with their suppliers, as well as creating metrics which monitor and improve their relationship.
Make- Companies manufacture their product or services in this step. Quality levels, product outputs and worker productivity are measured by this metric intensive portion of the supply chain. Scheduling activities which are required for testing, production, packaging and preparing for delivery are also covered in this step.
Deliver- This stage is usually referred to as logistics. Logistics is the set of processes that plans for and controls the efficient and effective transportation and storage of supplies from the suppliers to the customers. Companies must be able to receive orders from customers, fulfil orders, pick transportation companies to deliver the products, as well as implement a billing and invoicing system to assist with payments during this stage of the supply chain.
Return- This is typically the most problematic stage. Companies need to create a network for receiving defective and excess products, as well as being able to support customers who have problems with delivered products.
Figure 1: A diagram I made demonstrating the 5 components of supply chain management
Define the relationship between information technology and the supply chain.
Information technologies main role in supply chain management is creating integrations, tight process and information linkages between functions within a company and between companies. This allows a smooth and organised flow of both information and product between customers, suppliers and transportation providers across the supply chain.
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