Week Nine - Operations Management and Supply Chain

1. Define the term operations management.

operations Management refers to the management systems in place that convert or transform resources into goods and services. It involves the management of all the core processes that go into manufacturing the goods.


2. Explains operations management's role in business.

Operations management is concerned with all goings on within the business that have affect on the production of the goods, its activities within the business can include:
- Forecasting: Estimating the demand that will be required of the product, whether there will be other circumstances that will have an affect on business.
- Capacity Planning: This is essential to maintain cash flow and increase revenues. If planning is done incorrectly it will cause a shortage or surplus in goods which will have a negative affect on profits.
- Scheduling: The need for the to be a clear understanding of what is to be done and when and by whom.
- Managing Inventory: managing when the goods will be needed, as well as the quantity that will be required.
- Assuring Quality: Maintaining the level of quality needed is essential in all industries
- Motivating and training employees: Making sure goals that are set can be attained and that all employess have necessary training.
- Locating facilities: Where would the correct place for the facility exist, do you want a snow ski hire shop in Cairns.


3. Describe the correlation between operations management and information technology.

IT is relied on by management to give them the needed information to make the correct decisions. By helping operations management make the correct decisions IT helps the business realise its goals and objectives. IT supplies operations management with the necessary to make important decisions within an organisation such as:
- What: What resources will be needed and in what amounts?
- When: When will each resource be needed? When should the work be scheduled? When should material be ordered?
- Where: Where will the work be performed?
- How: How will the product or service be designed? How will the work be done?
- Who: who will perform the work?


4. Explain supply chain management and its role in a business.

Supply chain deals with all of the parties involved, directly or indirectly, in the procurement of a product or raw material. Supply management is concerned with the flow of information between the stages in supply chain and trying to maximise total supply chain effectiveness and profitability.

5. List and describe the five components of a typical supply chain.

- Plan: A startegic section, which deals with the planning of resources needed to meet customer demand.
- Source: The finding of reliable suppliers of goods who are also competitively priced.
- Make: The stage of actual manufacturing of goods and services.
- Deliver: Also known as logistics, plans the effective and efficient delivery of goods and services.
- Return: A problematic stage that must deal with defective goods or returned goods due to excess order returns.


6. Define the relationship between information technology and the supply chain?

The primary role of IT on supply chain management is creating the integrations or tight process and information technology and information linkages between functions within a from such as marketing, sales, finance and between firms, which allows for smooth, synchronised flow of both information and product between customers, suppliers and transportation providers across the supply chain. through the use of IT by supply chain management it integrates planning, decision-making processes, business operating processes and information sharing for business performance management.