Week Nine B.I.T

Week Nine - Operations Management and Supply Chain

1. Define the term operations management

Operations Management is the management of systems or processes that convert or transform resources into goods and services. It aims to reduce the resources needed whilst meeting customer requirements. Operations management is responsible for the core processes used to manufacture goods and produce services.

2. Explain operations management’s role in business

The role of operations management within a business is to ensure that the business is efficient, using as little resources as possible, and effective, meeting customer requirements. Operations management is chiefly concerned with managing the process of converting inputs into outputs.


Operations management functions in interrelated activities such as: forecasting, capacity planning, scheduling, managing inventory, assuring quality, motivating and training employees and locating facilities.

OPERATIONS MANAGER VIDEO:


3. Describe the correlation between operations management and information technology
IT can influnce operations management in areas such as: productivity, costs, flexibility, quality and customer satisfaction. IT provides information which is crucial for managers to make well informed decisions. IT can provide a number of different information forms such as the what-if analysis, sensitivity analysis and drill downs. They enable the correct business decision to be made in the circumstances
4. Explain supply chain management and its role in a business
Supply chain management is the management of the information flows between the various stages in a supply chain to maximise the total effectiveness of the supply chain and increase profitability. Supply chain management is vital in business as it enables firms to keep track of their inventory.

SUPPLY CHAIN MANAGEMENT:

5. List and describe the five components of a typical supply chain
Supplier: provides goods/services to a company to be used in the manufacturing process.
Manufacturer: makes products or services for businesses.
Distributor: a person or company that delivers the goods or services to the retailer.
Retailer: the shop where the product or service is sold.
Customer: the person who purchases the good or service from a retailer.
6. Define the relationship between information technology and the supply chain.Information Technology improves the forecast and operations of the supply chain.
Information technology provides greater visibility over varying levels of the supply chain as goods can easily be located.
Information enables a faster response to consumer demands within the supply chain. This can create a competitive edge for a company differentiating itself by its fast delivery of goods.