1.) Define the term operations management
Operations management (OM) is the management of systems or processes that convert or transform resources (including human resources) into goods and services. Operations management is responsible for managing the core processes used to manufacture goods and produce services.
2.) Explain operations management’s role in business
The scope of OM ranges across the organisation and includes many interrelated activities, such as forecasting, capacity planning, scheduling, managing inventories, assuring quality, motivating employees, deciding where to locate facilities and more.
3.) Describe the correlation between operations management and information technology
Managers can use IT to heavily influence OM decisions including productivity, costs, flexibility, quality and customer satisfaction. One of the greatest benefits of IT on OM is in making operational decisions because OM exerts considerable influence over the degree to which the goals and objectives of the organisation are realised. Most OM decisions involve many possible alternatives that can have varying impacts on revenues and expenses. OM information systems are critical for managers to be able to make well-informed decisions.
4.) 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.
5.) List and describe the five components of a typical supply chain.
The five basic components of supply chain management are: plan, sources, make, deliver and return. The first of the five-component theory, plan, is the strategic portion of supply chain management. A company must have a plan for managing all the resources that go toward meeting customer demand for products or services. A big piece of planning is developing a set of metrics to monitor the supply chain so that it is efficient, costs less, and delivers high quality and value to customers. The second element, source, states that companies must carefully choose reliable suppliers that will deliver goods and services required for making products. The third component in the five-component theory, make, is the step where companies manufacture their products or services. This can include scheduling the activities necessary for production, testing, packaging, and preparing for delivery. Fourthly, deliver, is a step commonly 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 suppliers to customers. The last component, return, is typically the most problematic step in the supply chain. In this instance companies must create a network for receiving defective and excess products and support customers who have problems with delivered products.
6.) Define the relationship between information technology and the supply chain.
Information technology’s primary role in SCM is creating the integrations or tight process and information linkages between functions within a firm, such as marketing, sales, finance, manufacturing and distribution between firms, which allows the smooth, synchronised flow of both information and product between customers, suppliers and transportation providers across the supply chain. Information Technology integrates planning, decision-making processes, business operating processes and information sharing for business performance management.
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