Operations Resources:

(5P's of Operations Management)

- People
- Plants
- Parts
- Processes
- Planning and Control System
 Types of Decisions

• A) Strategic Decisions
• - less structured
• - long term
• - focus on the entire organization
 Types of Decisions

• B) Tactical Decisions
• - more structured
• - imtermediate / medium term
• - focus on division and departmental lines.
 Types of Decisions

• C) Operational Decisions
• - repetitive
• - short-term
• - routine focused on sections, units and/or teams
 Set of Decisions made in Operations Management
1. Goods and services:
• - includes looking for ways to implement consistency in costs,
quality, and resources across all business divisions.

2. Quality Management:
- focused on the customer’s demands and then meeting those
expectations.
3. Process and Capacity Design:
- design strategies which support all production goals including
technology and resources. A value stream map can help determine
what processes are necessary and how to keep them running
efficiently.

4.Location:
- consider supply chain and how the location will receive supplies,
the movement of goods and services internally and to customers,
and the role of marketing and public relations in the location
choice.
5. Layout Design and Strategy:
- consider the placement of desks, workstations, and how
materials are delivered and used.

6. Human Resources and Job Design:

- implementing continuous improvement programs with regular
reviews, providing continuous training for employees, and
instituting employee satisfaction programs.
7. Supply Chain Management:
- determine the best strategies to streamline, be cost effective, and
to develop trusted partners.

8. Inventory:
- strategize and plan inventory control. Weather, supply shortages,
and labor all influence how an organization maintains its
inventory.
9. Scheduling:
- consider both production and people. Ask questions such as how
much product is required to be produced for the customer in the
required time?

10. Maintenance:
- this includes maintaining people and machines, as well as,
process.
 3 Important Functions within Business Organizations

• 1. Operation
• - consists of all activities directly related to producing
goods or providing services.
 3 Important Functions within Business Organizations

2. Finance – secures and invests the company’s capital

assets.
 Finance and operations management personnel
cooperate by exchanging information and expertise
in activities such as:

- Budgeting
- Economic analysis of investment proposal
- Provision of funds
 3 Important Functions within Business Organizations

3. Marketing
- consist of selling and/or promoting the g/s of an
organization
- generates demand for the company’s output
Note: The three major functions within a business are interdependent:

- Having the financial resources and the ability to produce a product

are of little value if there is no market for the product.
- Having the finance and a market for a product are of little value
when one cannot provide the product.
- The ability to produce a product and a market for the product are not
sufficient if one does not have the necessary capital to employ
personnel, buy raw materials and put the other capabilities into
action.