Define the term operations management
Operations
management (OM) is the management of systems or
processes that convert or transform resources into goods and services. An
integrated system is the only way to have a consistent view of the data and
provide up to the minute results—on a company-wide basis.
Explain operations management’s role in business
Managers use IT to heavily influence OM
decisions including productivity, costs, flexibility, quality, and customer
satisfaction.
Decision support systems and executive
information systems can help an organisation perform what-if analysis,
sensitivity analysis, drill-down, and consolidation.
Numerous managerial and strategic key
decisions are based on OM information systems that affect the entire
organisation.
Managers use IT to heavily influence OM
decisions, including:
- 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?
Describe the correlation between operations management and
information technology
Operations manager’s MUST PROJECT FUTURE
INFORMATION BY ACCESSING SYSTEMES THAT CAN PROVIDE THIS TYPE OF INFORMATION. IT
provides such systems. IT can also help
OM with automating processes, which is making something into a process rather
than ad hoc. Can assist in keeping cots down and therefore IT can assist with
competitive advantage through cost, delivery, flexibility or service (check
these points). An integrated system is the only way to have a consistent view
of the data and provide up to the minute results—on a company-wide basis.
By automating the most important business
practices, business will be able to work more efficiently, reduce overhead,
increase agility, and improve insight into business processes
Explain supply chain management and its role in a business
Supply Chain Management
(SCM) involves the management of
information flows between and among stages in a supply chain to maximise total
supply chain effectiveness and profitability
Benefits of Supply Chain Management in
Business include:
- Decrease the power of its buyers
- Increase its own supplier power
- Increase switching costs to reduce the threat of substitute products or services
- Create entry barriers thereby reducing the threat of new entrants
- Increase efficiencies while seeking a competitive advantage through cost leadership
What is the bullwhip effect, and how can it be avoided?
One phenomenon common to supply is the bullwhip effect - where variability in
the size and timing of orders increase at each stage up the supply chain, from
customer to supplier.
The bullwhip effect is a natural dynamic that
occurs because of the multistage nature of the supply chain. It is not related
to erratic consumer demand.
Counteract the bullwhip effect by having good
information of all the sources in the supply chain. Then you will be able to
predict sales, demand and trends.
How does technology assist in supply chain management?
Help in forecasting by sharing information
with the entire supply chain allowing everybody at all stages of the chain
using the same systems ensuring a competitive advantage. Technology advances
have significantly improved companies’ forecasting and business operations by:
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.
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