Unit - Introduction Operations Management

Session 1: Intro. and Operations in perspective

Learning outcome 1: Understand how operations concerns the creation of value for the customer
Learning outcome 2: Discuss how operations interfaces with other business functions
Learning outcome 3: Explain how the concept of variability, uncertainty, capacity and inventory relate to different operations environments.
Learning outcome 4: Contrast the relative merits of the 3 basic capacity planning options.
Learning outcome 5: Discuss the trade-off relationship between the performance objectives, variability and buffer choices.

For the following examples:
What are the service aspects and why?
What are the sources of variation and uncertainty?
How is the variation and uncertainty buffered?

- Call Centre
- Passenger Air Transport
- Healthcare

Compare fresh and frozen turkey production for the Christmas festival
- Fresh
- Frozen

Glebe Farm Case study

Read the case and discuss the following questions in pairs

What are the issues that Gillian faces?
What are the major sources of variability?
What are the service elements to this delivery system?
How is capacity planned and buffering used?

Examine the proposal to increase the number of farm visits by 50%
Evaluate the sales profile.
Analyse the capacities and any potential capacity constraints (bottlenecks) within these businesses.
How can demand be managed?

What factors should Gillian consider when deciding to increase the number of flavours from 5-10?

How will increased variety effect the buffering (capacity, inventory and time)?