Weekly Questions - Week 9

Define the term operations management

Operations management refers to the management of systems, procedures or processes that are used to convert or transform resources into final goods and services. This notion is also attributed to ensuring business processes are efficient, in that they use as little resources as possible and are also effective; by ensuring customer requirements are met.


Explain operations management’s role in business

OM helps raise business profits by efficient management of systems that transform their resources into goods. This is done by ensuring a quality product is produced and delivered quickly while maintaining good customer service and the good at a low cost.


Describe the correlation between operations management and information technology

The correlation is strong as Operation Managers role is varied and the need for IT to provide them with visibility of the business. This will help show them where the processes are. This will also show them what resources will be needed and in what amounts, when it should be scheduled, ordered and when corrective management will be needed. It also helps with where the work will be performed (e.g. near transport and near available labour) and how will the good be designed while designating who will perform the work, either in-source or outsource.

Overall, it is greatly used in the Operation Managers role as it helps them make correct decisions that will influence the whole business. Decision support systems greatly help in this area as many decisions have many possible outcomes. This is done through the use of what-if-analysis, which will help determined the best outcome.


Explain supply chain management and its role in business

Supply Chain Management also known as SCM is the management of 'data flows' between the different segments/stages of a supply chain. by managing this information and allowing accurate communication between supply chain stages, supply chain efficiency can be greatly improved.


List and describe the five components of a typical supply chain

- Plan: Firm must have a plan for managing all resources that go towards meeting customer demand for goods and/or services

- Source: Firms must carefully choose reliable suppliers

- Make: Manufacturing stage

- Deliver: Known as logistics: set of processes that plans for and controls the efficient and effective transportation and storage of goods

- Return: Most problematic step in supply chain – firms must create networks for receiving defective and excess products and support customers w/ problems with their goods


Define the relationship between IT and the supply chain

IT plays a crucial role in the supply chain. IT enables the integration of process and information linkages between functions of a firm or between other firms, suppliers, customers etc to be analysed. IT also enables firms to monitor their supply chain and through the information gathered from this stage create informed forecasts and plans for future business goals and objectives. SCM heavily relies on IT to make accurate decisions regarding inventory, need for business processes, reducing costs etc. Without IT, it would be impossible to accurately monitor a large supply chain.