Operations Management

Week 1 – Introduction to OM
Learning outcomes

• Define operations management

• Describe core functions of organisations &
discuss the implications of operations
management for organisations
• Describe and apply the input- transformation-
output model

2
Student Activity

• Mind map operations management

• In groups of 3/4 draw a mindmap of what you
believe operations management is. Use an
organisation you are familiar with.
• From this mindmap, try to develop some
definitions

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Operations Management - Definition

• “Operations management is the activity of

managing the resources which create and
deliver services and products.”
• The operations function is the part of the
organisation that is responsible for this
activity.
Slack, N., Brandon-Jones, A, Johnston, R. (2011)

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Operations Management - Definition

• “Operations managers are the people who

have a particular responsibility for managing
some, or all, of the resources which comprise
the operations functions’
Slack, N., Brandon-Jones, A, Johnston, R. (2011)

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How can this course help you in your
career?
1. Help making Operational Trade-Offs

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How can this course help you in your
career?
2. Overcome Inefficiencies

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How can this course help you in your
career?
3. Evaluate Proposed Redesigns/New
Technologies

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PBL Activity:

• Using the PBL 7-Step Cycle, identify the activities

the Bahrain IKEA operation manager will need to
be responsible for.

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Overview of course
• Topics covered

• Assessments

10
What have you learned today?

• What were the key points of today’s session?

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Operations Management
Week 1 – Class 2
Learning outcomes

• Define operations management

• Describe core functions of organisations &
discuss the implications of operations
management for organisations
• Describe and apply the input- transformation-
output model

13
Review of last class

• Defined terms – Operations

management/Operations function/operations
manager
• Reviewed IKEA case

14
Activity

• Mind map the core functions of any

organisation
• Draw the links between operations
management and the other core functions in
an organisation

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The relationship between operations
function and other core and support
functions of the organisation

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The relationship between operations
function and other core and support
functions of the organisation
• Marketing (including sales function) – is
responsible for communicating the
organisations services & products to its
markets in order to generate customer
requests for its services
• Service/product development: responsible for
developing new & modified offerings in order
to generate future customer requests for
services 17
The relationship between operations
function and other core and support
functions of the organisation
• Operations function – is responsible for
fulfilling customer requests for service
through the creation and delivery of services
and products.
• Support functions: accounting & finance –
provide information to help with decision
making & manages financial resources of
organisation
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The relationship between operations
function and other core and support
functions of the organisation
• Support functions: HRM – recruits and
develops the organisation’s staff as well as
looking after their welfare.

• Working effectively with other parts of the

organisation is one of the most important
responsibilities of operations management

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Input-transformation-output model

Transformation
Inputs Outputs
process

Feedback

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Input-transformation-output model

• All operations create services and products by

changing inputs into outputs using an ‘input-
transformation-output’ process
• Operations are processes that take in a set of
input resources which are used to transform
something, or are transformed themselves,
into output of services and products

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Input-transformation-output model

• E.g. Frozen food manufacteur

• Operation inputs: fresh food, operators,
processing technology, cold storage facilities
• Operation processes: source raw materials,
prepare food, freeze food, pack food
• Operation outputs: Frozen food

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 Input-transformation-output model
Transformed
resources
•Materials
•Information
•Customers

Input Output
resources
Transformation process products and Customers
services

Transforming
resources
Outputs are products and services
•Facilities
that add value for customers
•Staff

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Input-transformation-output model

• Inputs: One set of inputs to any operations

processes are transformed resources. These
are the resources that are treated,
transformed or converted in the process.
They are usually a mixture of the following:
• Customers
• Materials
• Information
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Input-transformation-output model –
transformed resources

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Input-transformation-output model

• The materials, information and customers are

the transformed resources; they are changed
in some way during the operation. What
transforms them are the transforming
resources.
• There are two types, which form the “building
blocks” of all operations. It can be classified
into tangible resources and intangible
resources. 26
Input-transformation-output model

• Tangible resources (Facilities) – the buildings,

equipment, plant, capital and process
technology of the operation.
• Intangible resources (Staff) – those who
operate, maintain, plan and manage the
operation (i.e. all the people in the operation,
at any level with the competency, knowledge
and skills.
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Input-transformation-output model -
outputs from process
• Some operations create and deliver just
services and others just products, but most
operations produce a mixture of the two.

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Input-transformation-output model -
outputs from process
Crude oil production Pure products
Aluminium smelting
Specialist machine tool
production
Restaurant Mixture of
products and
services
Information systems
provider
Management consultant
Psychotherapy clinic Pure services

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Apply Input-transformation-output model
to the following organisations
• Airline
• Department store
• Dentist
• University

• Use the frozen food manufacturer as an

example.
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WHAT HAVE WE LEARNED THIS WEEK?

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