Introduction
Ben Laker

Introduction
2

COURSE structure
TUTORIAL programme
ASSESSMENT
Learning MATERIALS

Course structure
TEACHING BLOCK 1
OPERATIONS MANAGEMENT

TEACHING BLOCK 2
PROJECT MANAGEMENT

Course structure

ALEX HILL module leader

BEN LAKER module tutor
GRAHAM WALKER module tutor
NOORAN SALMAN module tutor
REZA ZANJIRANI FARAHANI module tutor
LECTURE each week
TUTORIAL each week

OM lecture content
2

MODULE DETAILS

Session Topics and content

Chapters in
core text
Hill and Hill
(2011)

Introduction to module: module handbook; course structure; learning and

teaching approach; learning resources: course text and associated Studyspace
materials; assessment strategies and methods.

Managing operations: introduction; location and layout; managing the supply

chain; managing quality; managing inventory; managing capacity; improving
operations.

Operations Strategy: evolution of business strategy;levels of strategy; strategy in

action; business unit strategy; functional strategy; understanding markets.

Designing service and products: research and development process; design

and development process; operations strategy issues; design techniques and
approaches.

Delivering services: service characteristics; factors in delivering services;

designing service delivery systems; types of service delivery system.

Making products: product characteristics; factors in making products; designing

manufacturing processes; types of manufacturing process.

Location and layout: location factors; location techniques; layout factors; types
of layout.

Managing capacity: defining capacity; measuring capacity; factors affecting

capacity management; planning capacity; managing demand; managing capacity

Scheduling and executing operations: what is operations scheduling?;

operations scheduling systems

Managing inventory: inventory role, types and functions; managing and

controlling inventory; inventory decisions; inventory systems; inventory analysis.

Managing quality: what is quality and why is it important?; specify the product or
service; quality conformance; quality principles; quality philosophy; tools and
techniques.

10

Managing the supply chain: what is a supply chain?; how should supply chains
be designed?; managing supply chains; digital supply; developing supply chains;
benefits of improving supply chains.

11

Improving operations: measuring performance; stepped versus incremental

improvement; continuous improvement; improvement approaches; tools and
techniques; employee involvement.

12

TEACHING PROGRAMME
OM3 lecture
timetable
3 TEACHING PROGRAMME
Week

Tuesday

Thursday

Lecture

Week
starting

Thursday
09.00
starting Room
LLT - 11.00
Room LLT Lecture
15.00
- 17.00
Room LLT
and
026 15.00 - 17.00

23/09/13

Group 1, 2, 3, 4, 5 and 6

30/10/13
07/10/13

Graham
WalkerBen

Laker

01/10/12 Group 1, 2 and 3 Group 4, 5 and 6

Graham
WalkerBen

Laker

Group 1, 2, 3, 4, 5 and 6

Managing operations

Group 1, 2, 3, 4, 5 and 6
Group 1, 2, 3, 4, 5 and 6
Group 1, 2, 3, 4, 5 and 6

Operations strategy

Operations strategy

08/10/12 Group 1, 2 and 3 Group 4, 5 and 6

Designing services and products

Delivering
services
Designing
services
and products
Delivering
services
Making
products

Graham
Walker

Ben Laker

Location and layout

Graham
Walker

Exam briefing

Graham
Walker

Individual
assignment briefing
Assignment briefing

22/10/12 Group 1, 2 and 3 Group 4, 5 and 6

21/10/13

Lecturer

Introduction to module
to module
24/09/12 Group 1, 2 and 3 Group 4, 5 Introduction
and 6
Managing operations

15/10/12 Group 1, 2 and 3 Group 4, 5 and 6

14/10/13

Lecturer

Making products

Ben Laker
Ben Laker

Location
andWeek
layout
Enrichment
Activity
Managing
capacity
Added value
week

05/11/12 Group 1, 2 and 3 Group 4, 5 and 6

Ben
Scheduling and executing operations Laker

04/11/13

Managing capacity
Ben
12/11/12 1,Group
3 Group
4, 5 and 6 Managing inventory
Group
2, 3,1,4,2 5and
and
6
Ben Laker
Scheduling and executing operationsLaker

11/11/13

19/11/12 1,Group
3 Group
4, 5 Managing
and 6 Managing
quality
Group
2, 3,1,4,2 5and
and
6
inventory

Ben
Laker

Ben Laker

26/11/12 1,Group
3 Group
4, 5 Managing
and 6 Managing
the supply chain
Group
2, 3,1,4,2 5and
and
6
quality

Ben
Laker

Ben Laker

25/11/13

03/12/121,Group
3 Group
4, 5 Managing
and 6 Improving
operations
Group
2, 3,1,4,2 5and
and
6
the supply
chain

Ben
Laker

Ben Laker

02/12/13

Group
2, 3,1,4,2 5and
and
6
operations
10/12/121,Group
3 Group
4, 5 Improving
and 6 Exam
revision

Graham
Ben
Walker

18/11/13

Laker

NoRevision
lectures
this week
Week
Xmas
vacation
Start
of Exams
06/01/14 Group 1, 2, 3, 4, 5 and 6

Introduction to Project Management

Nooran Salman

13/01/14 Group 1, 2, 3, 4, 5 and 6

Managing Project Scope and Schedule

Nooran Salman

20/01/14 Group 1, 2, 3, 4, 5 and 6

Project Management Methodologies

Guest Speaker

27/01/14 Group 1, 2, 3, 4, 5 and 6

Project Management Software

Nooran Salman

03/02/14 Group 1, 2, 3, 4, 5 and 6

Managing Project Communications

Nooran Salman

OM tutorial programme

CASE STUDY based

Available:
- In the COURSE TEXT, and
- On STUDYSPACE the week
before the tutorial

TUTORIAL PROGRAMME

Tutorial programme
Teaching Block 1

TUTORIAL PROGRAMME

Week WeekTuesday
WednesdayWednesday
Wednesday
ThursdayFriday
Thursday
Monday Tuesday
Tuesday Wednesday
Wednesday
CaseCase Study /
starting
RoomRoom
239
Room
239 Room
Room
239 Room
Room
Room
Workshop
starting
Room
027
027 239RoomRoom
027 239
Room
027 239
Studies
/
027 - 14.00 11.00
12.00
12.00
13.00
13.0012.00
14.00

12.00 027
- 13.00 13.00
11.00
12.00
12.0013.00
Workshops
10.00 12.00
12.00
13.00
13.0014.00
13.00
11.00
13.00
26/09/11
No tutorials this week
24/09/12
No tutorials this week
03/10/11 Group 3
Group 4
01/10/12 Group 1
Group 2

Group 3

Group 1

10/10/11 Group 3
Group 4
08/10/12 Group 1
Group 2

Group 3

17/10/11 Group 3
Group 4
15/10/12 Group 1
Group 2

Group 3

24/10/11 Group 3
Group 4
22/10/12 Group 1
Group 2

Group 3

Group 1
Group 1
Group 1

Group 2

Group 4

Group 2

Group 4

Group 2

Group 4

Group 2

Group 4

Group 5

Group 5

Group 5

Group 5

Too short the

Group 6 Too short
day the
day

Group 6

Group 6

Group 6

Apple

Apple

British
Group 6 British
Airways
Airways
Assignment
Group 5
Group 6
Group 5
Group 6
Morgan
Cars
workshop
Group 5

Group 5

Group 6

Added Value Week

Enrichment Activity Week

07/11/11
GroupGroup
3
42
05/11/12
1 Group
Group

Group
Group
3 1

Group
Group
4 2

5 Group
Group
6 Assignment
Morgan Cars
GroupGroup
5
6
workshop

14/11/11
GroupGroup
3
42
12/11/12
1 Group
Group

Group
Group
3 1

Group
Group
4 2

5 Group
Group
6 Minkies
DellDeli
GroupGroup
5
6

21/11/11
GroupGroup
3
42
19/11/12
1 Group
Group

Group
Group
3 1

Group
Group
4 2

5 Group
Group
6 Dell Minkies Deli
GroupGroup
5
6

28/11/11
GroupGroup
3
42
26/11/12
1 Group
Group

Group
Group
3 1

Group
Group
4 2

5 Group
Group
6 Zara Zara
GroupGroup
5
6

05/12/11
GroupGroup
3
42
03/12/12
1 Group
Group

Group
Group
3 1

Group
Group
4 2

5 Group
Group
6 Crown
Crown
GroupGroup
5
6
HotelHotel

12/12/11
GroupGroup
3
42
10/12/12
1 Group
Group

Group
Group
3 1

Group
Group
4 2

5 Group
Group
6 Harley
GroupGroup
5
6
Davidson
Davidson

Revision this
Weekweek
No tutorials
Start of
Exams
Xmas
vacation
Groups:
Group 1
Group 2
Group 3
Group 4
Group 5
Group 6

- BABM Group A and B and BABS Group A

- BABM Group C and D and BABS Group B
- BABM Group E and F and BLAW Group A
- BABM Group G and H and BAIB
- B w Acctg, BA HRM and BAF
- BIT/BIM/BSM, BLAW Group B, BAMM and BAMCA

Harley

Assessment

50% - OM INDIVIDUAL ASSIGNMENT

30% - PM GROUP ASSIGNMENT
20% - PM INDIVIDUAL ASSIGNMENT

MANAGEMENT
INDIVIDUAL ASSIGNMENT
OMOPERATIONS
individual
assignment

This is an individual assignment. You must choose an organisation or business1 and produce a report elaborating
on the key strategic and operational issues faced by the operations manager(s) in this particular organisation /
business. As you are expected to collect primary data from managers, employees and customers of the
organisation, it makes sense to select a company where you work, have worked or know people who work there.
The first part of the report, focusing on the more strategic issues of the business should identify the customers and
markets supplied by the operation and the products and services supplied to them. The report should identify the
market order-winners and market qualifiers and establish their relative importance for alternative customer
segments.
The second part of the report, focusing on the operational issues, should seek to identify and clarify how the
operation functions and supports the market that it serves. What service delivery system(s) or manufacturing
process(es) does it use? What infrastructure does it use to manage these delivery systems? And how, together, do
these support the market(s) that it serves? A detailed and relevant description should be made of the various
components and appropriate diagrams should be used to help explain this.
Based on your analysis, you are expected to make recommendations about how the business can improve its
performance.
Equal weighting in your report should be given to the first and second parts outlined above. The report will be
assessed according to the following criteria:

The description of the organisation and its business context

Understanding of the theoretical concepts and ability to use them to analyse the operation
The quality of the report 2, including structure, readability, and presentation
Research methodology3

(15%)
(45%)
(30%)
(10%)

Both a physical and electronic version of your report must be submitted by 9.00am on Monday 6th January
2014. A digital drop box will be made available for the electronic copies.

For example: a restaurant, bank, nightclub, pub, retailer, service-provider or manufacturer

The report should be between 3,000-3,500 words long and should have the following structure:
An Executive Summary, no more than one page, which summarises the report, its main findings, and its
conclusions.

assessed according to the following criteria:

The description of the organisation and its business context

Understanding of the theoretical concepts and ability to use them to analyse the operation
The quality of the report 2, including structure, readability, and presentation
Research methodology3

(15%)
(45%)
(30%)
(10%)

Both a physical and electronic version of your report must be submitted by 9.00am on Monday 6th January
2014. A digital drop box will be made available for the electronic copies.

OM individual assignment

For example: a restaurant, bank, nightclub, pub, retailer, service-provider or manufacturer

The report should be between 3,000-3,500 words long and should have the following structure:
An Executive Summary, no more than one page, which summarises the report, its main findings, and its
conclusions.
A List of Contents including page numbers for easy reference
A Research Methodology explaining how you researched the assignment. This should containing details
of meetings held showing how you collected and analysed the data for your report.
An Introduction which briefly describes the organisation or business and its context (i.e. market share,
customers, competitors)
The Analysis of the strategic and design issues as applied to the operation
Findings and Conclusions from the analysis
Recommendations for the organisation you have reviewed
References
Appendices
Note: The executive summary, references, tables, figures and appendices are not included in the word
count

3 You are expected to gather primary data to analyse the operation, which should include interviews with managers,
employees and customers of the business

13

OM learning materials
CORE
- Hill and Hill (2011) Essential operations management,
Palgrave Macmillan
RECOMMENDED
- Hill and Hill (2009) Manufacturing operations strategy,
3rd Edition, Palgrave Macmillan
- Hill and Hill (2012) Operations management, 3rd
Edition, Palgrave Macmillan
- Hill (1998) The strategy quest, AMD Publishing
20% off at www.palgrave.com with WSTUDENT13UK code

OM learning materials
Contents in brief
Part one Introduction

Managing Operations

Operations Strategy

31

Part two Designing and delivering services and products

67

Designing Services and Products

Delivering Services

105

67

Making Products

139

Location and Layout

165

Part three Managing operations

207

Managing Capacity

207

Scheduling and Executing Operations

247

Managing Inventor y

289

10

Managing Quality

327

11

Managing the Supply Chain

365

Part four Improving operations

409

12

Improving Operations

409

OM learning materials
How
How
toto
use
use
each
each
chapter
chapter
Learning
Learning
objectives
objectives

Figures
Figures

These
These
show show
what you
whatshould
you should
have learned
have learned
by theby
theyou
time
timereach
you reach
the end
theofend
theof
the chapter
chapter
Each
Each
objective
objective
is linked
is linked
to a central
to a central
topic topic
or issue
or issue
in operations
in operations
management
management

A large
A large
number
number
of figures
of figures
are also
areprovided
also provided
to show
to show
data or
data
concepts
or concepts
in a tabular
in a tabular
or graphic
or graphic
format.
format.
This provides
This provides
a deeper
a deeper
illustration
illustration
of theofissues
the issues
beingbeing
discussed
discussed
withinwithin
the chapter.
the chapter.

Chapter
Chapter
outline
outline

Critical
Critical
reflections
reflections

The chapter
The chapter
outline
outline
highlights
highlights
the key
thetopics
key topics
to be to
be covered
covered
in theinchapter
the chapter

At the
Atend
the of
end
each
of each
chapter,
chapter,
critical
critical
reflections
reflections
discuss
discuss
the issues
the issues
addresses
addresses
in thein the
chapter
chapter
and encourage
and encourage
readers
readers
to reflect
to reflect
on and
on critically
and critically
evaluate
evaluate
the key
thetopics
key topics
that that
have have
been been
discussed.
discussed.

Introduction
Introduction
The introduction
The introduction
sets the
sets
scene
the scene
and provides
and provides
an overview
an overview
of theof
chapter
the chapter
by explaining
by explaining
the the
key topics
key topics
that will
thatbewill
covered.
be covered.
Key terms
Key terms
the key
the key
terms used
termswithin
used within
Text within
Text within
the chapter
the chapter
the chapter
the chapter
are
are
explained
explained
in speech
in speech
The text
Theexplains
text explains
the key
the
concepts
key concepts
and ideas
and ideas
relating
relating
to theto
aspect
the aspect
of operations
of operations
managemanagebubbles
bubbles
placedplaced
in
in
ment ment
beingbeing
discussed.
discussed.
the page
themargin
page margin

Summary
Summary
The key
Thepoints
key points
from from
the chapter
the chapter
are summarised
are summarised
as bullet
as bullet
points.
points.
iiican students
Aswith
As the
withkey
theideas,
key ideas,
thesethese
can help
help students
reviserevise
for their
for their
exams.
exams.

Exploring
Exploring
further
further
Examples
Examples
of journal
of journal
articles,
articles,
booksbooks
and other
and other
sources
sources
are provided
are provided
allowing
allowing
you to
you to
further
further
explore
explore
the ideas
the ideas
and concepts
and concepts
discussed
discussed
withinwithin
the chapter.
the chapter.

StudyStudy
activities
activities
> KEY
> IDEAS
KEY IDEAS
Key ideas
Key ideas
contained
contained
withinwithin
the chapter
the chapter
are highlighted
are highlighted
and summarised
and summarised
withinwithin
the the
text. These
text. These
provide
provide
a useful
a useful
overview
overview
of arguments
of arguments
beingbeing
mademade
withinwithin
the chapter,
the chapter,
whichwhich
can also
canhelp
alsostudents
help students
to revise
to revise
for their
for exams.
their exams.

StudyStudy
activities
activities
containing
containing
discussion
discussion
questions
questions
that will
thathelp
will students
help students
to debate
to debate
and and
applyapply
the key
thelearnings
key learnings
from from
the chapter.
the chapter.
ThereThere
are also
areassignments
also assignments
that suggest
that suggest
moremore
in-depth
in-depth
individual
individual
or group
or group
exercises.
exercises.

CASES
CASES

ENDEND
OF CHAPTER
OF CHAPTER
CASE
CASE

A large
A number
large number
of case
of examples
case examples
are scatare scatand the
and breadth
the breadth
of operations
of operations
activities
activities
tered tered
throughout
throughout
each chapter
each chapter
to illustrate
to illustrate
discussed
discussed
withinwithin
the book.
the book.
Each Each
case case
current
current
developments
developments
and practices
and practices
in includes
in includes
questions
questions
to encourage
to encourage
critical
critical
operations
operations
management
management
and show
and show
how the
how the
reflection
reflection
on the
on issues
the issues
discussed
discussed
plus plus
concepts,
concepts,
developments
developments
and approaches
and approaches
web links
web enabling
links enabling
further
further
investigation.
investigation.
identified
identified
can be
can
applied
be applied
withinwithin
organizaorganizations. tions.
TheseThese
casescases
show show
a widea variety
wide variety
of Example
of Example
answers
answers
to thesetoquestions
these questions
can becan
found
be at
found at
www.palgrave.com/business/hillessential.
www.palgrave.com/business/hillessential.
companies
companies
reflecting
reflecting
the mix
the ofmix
sectors
of sectors

As well
Asas
well
cases
as cases
beingbeing
scattered
scattered
throughthroughsion based
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on the
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the concepts
and ideas
and ideas
cov- covout the
outchapter,
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therethere
is a longer
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the chapter.
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This can
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from www.palgrave.com/business/hillessential.
for a for
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a tutorial,
studystudy
groupgroup
or class
or class
discusdiscus-

xx

xx

Essential
Essential
Operations
Operations
Management
Management
How to How
use each
to use
chapter
each chapter
xxi

xxi

OM learning materials
STUDYSPACE
Lecture WORKSHEETS
Lecture SLIDES
Tutorial CASE STUDIES
Regular ANNOUNCEMENTS
Copies of module INFORMATION

Managing Operations

Learning objectives
Explain ROLE of operations management in an
organisation
Appreciate the dimensions that make up the
operations management TASK
Identify where the operations management
FUNCTION fits within an organisation
Illustrate the crucial role of operations management in
organiational SUCCESS

Lecture outline
INTRODUCTION
What operations management DO?
Variations in the operations management ROLE
SERVICES vs MANUFACTURING
Critical REFLECTIONS
SUMMARY

What does Operations Management do?

Manages PEOPLE, MATERIALS,

RESOURCES and DELIVERY SYSTEMS

To deliver SERVICES and PRODUCTS

that have been sold to CUSTOMERS

Operations transform
materials into products and
services to meet customer needs

Alex Hill and Terry Hill 2011

> KEY IDEA

Operations delivers services and products to
customers by MANAGING the PEOPLE,
MATERIALS, RESOURCES and DELIVERY
SYSTEMS involved

What does Operations Management do?

How operations management fits into an organisation
ORGANISATIONS NEED TO
SELL services or products to customers
DESIGN services or products
PURCHASE materials and/or services
DELIVER the services or products to
meet customer needs
ACCOUNT for the cash or credit
transactions involved in the above

What does Operations Management do?

How operations management fits into an organisation
OPERATIONS RESPONSIBLE FOR
SELL services or products to customers
DESIGN services or products
PURCHASE materials and/or services
DELIVER the services or products to
meet customer needs
ACCOUNT for the cash or credit
transactions involved in the above

What does Operations Management do?

The role of operations management

CONTENT
DAY-TO-DAY role
STRATEGIC role

STYLE
INTERNAL role
EXTERNAL role

> KEY IDEA

DAY-TO-DAY role of operations include:

Managing within BUDGETS

SCHEDULING
SERVING customers
Meeting OUTPUT targets
Communicating with other FUNCTIONS

> KEY IDEA

STRATEGIC role of operations include:

Supporting market ORDER-WINNERS and

QUALIFIERS

Making company COMPETITIVE

CASE 1.2
OPERATIONS TASKS
AT PORTIOLIS
SANDWICH AND
COFFEE BAR

1.What are its MARKET orderwinners and qualifiers?

2.How must it manage
OPERATIONS to support its
market?

CASE 1.2 OPERATIONS TASKS AT PORTIOLIS

SANDWICH AND COFFEE BAR
Question

Answer

ORDERWINNERS

Product DESIGN
Product RANGE

QUALIFIERS

QUALITY conformance
Delivery SPEED
PRICE

CASE 1.2 OPERATIONS TASKS AT PORTIOLIS

SANDWICH AND COFFEE BAR
Manage
operations

Order-winners
Product
design

Qualifiers

Product
Quality
Delivery
Price
range conformance speed

Manage SUPPLY CHAIN

Manage QUALITY
Manage CAPACITY
Manage INVENTORY
DELIVER services and
products

Figure 1.5 - Overview of operations

- transforming
inputsprocess
into outputs
Figure process
1.5 - Overview
of operations
- transforming inputs into outputs

ENVIRONMENT,
NATIONAL/WORLD
ECONOMY ECONOMY
ENVIRONMENT,
NATIONAL/WORLD

AND GOVERNMENT
REGULATIONS
AND GOVERNMENT
REGULATIONS

ENVIRONMENT

INPUTS

INPUTS

People

People

People

People

Materials

Materials

Materials

Materials

Energy

Energy

Energy

Energy

Capital

Capital

Information

Information

RESOURCES

RESOURCES

OPERATIONSOPERATIONS

OUTPUTS

PROCESS PROCESS

OUTPUTS

GOODS
Capital
Capital
AND
Information
Information
SERVICES
SERVICES/

SERVICES/

PRODUCTS

PRODUCTS

ENVIRONMENT
PERFORMANCE
MEASUREMENT
PERFORMANCE
MEASUREMENT

14

14

AND CONTROL
AND CONTROL

Slack
et Operations
al (2004)
Essential
Management Managing
EssentialOperations
Operations 15
Management Managing Operations

15

What does Operations Management do?

Inputs and outputs
Figure 1.5 An overview of the operations process in a selection of organizations
Sector

Organization Inputs

Delivery system/
process

Outputs

Call centre

People
Telephone systems
IT equipment and support
Buildings and furniture
Rest and refreshment areas
Washroom facilities
Maintenance
Energy

Receiving calls
Processing requests and
queries
Updating records
Staff scheduling
Mail services

Customer queries,
information requests
and transactions
completed accurately,
within acceptable
timescales and with
appropriate levels of
service

Bank branch

People
Banking procedures
Processing equipment
Buildings and furniture
Rest areas
Washroom facilities
Meeting rooms
Office areas
Stationery
Energy

Commercial transactions
Updating records
Processing requests and
queries
Providing general and
specific advice
Technical services
IT support
Equipment maintenance

Completed personal
banking transactions
Completed business
banking transactions
Provision of regular, or
on-demand, up-todate personal and
businesses information
and financial advice

Figure 1.5 An overview of the operations

of organizations
People process in a selection Train
schedules
Tracks, trains and carriages
Ticket purchasing
Delivery
system/
Sector
Organization Inputs
Signalling and other support process
Passenger processing
systems
equipment/procedures
People
Receiving
calls
Traffic flows
Train maintenance
and
Metro or
Telephone
Processing
cleaning requests and
Passenger systems
procedures
underground
queries
IT
equipment
and machines
support
Station maintenance and
Ticket
offices and
Updating
Buildings
and furniture
cleaning records
Staff rest areas
Call centre
Staff
scheduling
Rest
and refreshment
Security
Washroom
facilities areas
Mail services
Washroom
facilities
Maintenance
Maintenance
Energy
Energy
People
Drug formulation/mixing
People
Commercial
transactions
Buildings and equipment
Equipment setting
Banking
procedures
Updating
records
Chemicals
Liquid, tablet
and
Processing
requests and
capsule preparation
Pharmaceuticals Processing
Packaging equipment
queries
Buildings
and
furniture
Packaging
Utilities and energy
Providing
general and
Rest areas
Warehousing
Bank branch
specific advice
Washroom facilities
Distribution
Technical services
Services
Meeting rooms
Peopleareas
Receipt
and storage of
IT
support
Office
crude oil and
other
Docking
facilities
Equipment
maintenance
Stationery
chemicals
Crude oil and other chemicals
Energy
Manufacturing
Refining
processes
Oil refining
Equipment
Distribution
People
Train
schedules
Process monitoring
Equipment
monitoring
Tracks,
trains and carriages
Ticket
purchasing
Buildings
and maintenance
Signalling
processing
Energy and other support Passenger
systems
equipment/procedures
Peopleflows
Material
storage and
Traffic
Train
maintenance
Metro or
Equipmentprocedures
Mixing
cleaning
Passenger
underground
Food ingredients
Packaging
Ice-cream
Station
maintenance and
Ticket
offices and machines
products
Packaging
Equipment maintenance
cleaning
Staff
rest areas
Buildings
Warehousing
Figure 1.5 An overview of the operations
of organizations
Washroomprocess
facilitiesin a selectionSecurity
Energy
Distribution
Maintenance
Delivery system/
Sector
Organization Energy
Inputs
process

Trains provided in line

with schedules
Outputs
reflecting the demand
profiles throughout the
day and evening
Customer
queries,
information
requests
Customers transported
and
transactions
to their destinations
completed
accurately,
safely and on
time
within acceptable
timescales and with
appropriate levels of
service

Services

Range of drugs
Completed
personal
prepared, packed
and
banking
deliveredtransactions
in line with
Completed
business
customers orders and
banking
transactions
schedules
Provision of regular, or
on-demand, up-todate personal and
businesses
information
Refining crude
oil into
and
financial
advice
various
products
and
distributing to
customers in line with
schedules
Trains
provided in line
with schedules
reflecting the demand
profiles throughout the
day
andofevening
Range
products
prepared and
packed
Customers
transported
in line
customer
to
theirwith
destinations
schedules
to meet
safely
and and
on time
the variable pattern of
seasonal demand

What does Operations Management do?

Inputs and outputs
16

Manufacturing

People
Buildings
equipment
Telephoneand
systems
Chemicals
IT equipment and support
Pharmaceuticals Packaging
Buildings and furniture
Call centre
Utilities
energy areas
Rest andand
refreshment
Washroom facilities
Maintenance
Energy
People

Oil refining
Bank branch

Services

Ice-cream
products

16

Metro or
underground

Docking
People facilities
Crude
oilprocedures
and other chemicals
Banking
Equipment
Processing equipment
Process
monitoring
Buildings and furniture
Buildings
Rest areas
Energy
Washroom facilities
Meeting rooms
People
Office areas
Equipment
Stationery
Food
ingredients
Energy
Packaging
Buildings
People
Energy
Tracks, trains and carriages
Signalling and other support
systems
Traffic flows
Passenger procedures
Ticket offices and machines
Staff rest areas
Washroom facilities
Maintenance
Energy

People
Buildings and equipment
Chemicals
Pharmaceuticals Packaging
Utilities and energy

Drug
formulation/mixing
Receiving
calls
Equipment
Processing setting
requests and
Liquid,
queriestablet and
capsule
Updatingpreparation
records
Packaging
Staff scheduling
Warehousing
Mail services
Distribution
Receipt and storage of
crude
oil andtransactions
other
Commercial
chemicals
Updating records
Refining
processes
Processing requests and
Distribution
queries
Equipment
monitoring
Providing general
and
and
maintenance
specific
advice
Technical services
Material storage
IT support
Mixing
Equipment maintenance
Packaging
Equipment maintenance
Warehousing
Train schedules
Distribution
Ticket purchasing
Passenger processing
equipment/procedures
Train maintenance and
cleaning
Station maintenance and
cleaning
Security

Drug formulation/mixing
Equipment setting
Liquid, tablet and
capsule preparation
Packaging
Warehousing
Distribution

People
Receipt and storage of
crude oil and other
Docking facilities
Crude oil and other chemicals chemicals

Outputs

Range
of drugs
Customer
queries,
prepared,
packed
and
information
requests
delivered
in line with
and transactions
customers
and
completed orders
accurately,
schedules
within acceptable
timescales and with
appropriate levels of
service
Refining crude oil into
various
products
and
Completed
personal
distributing
to
banking transactions
customers
in
line
with
Completed business
schedules
banking transactions
Provision of regular, or
on-demand, up-todate personal and
Range
of products
businesses
information
prepared
and advice
packed
and financial
in line with customer
schedules and to meet
the variable pattern of
Trains provided
in line
seasonal
demand
with schedules
reflecting the demand
profiles throughout the
day and evening
Customers transported
to their destinations
safely and on time

Range of drugs
prepared, packed and
delivered in line with
customers orders and
schedules

Refining crude oil into

various products and
distributing to

What does Operations Management do?

Task of the operations manager

Factory

Restaurant

What does Operations Management do?

Task of the operations manager
Operations
process

Type of
ORGANISATION

ROLE of the
operations
function

TASK of the
operations
manager

Factory

Restaurant

Operations transform
materials into products and
services to meet customer needs

Alex Hill and Terry Hill 2011

Variations in the operations management role

Variations in complexity
DEPENDING ON
SIZE of organisation
Service or product VOLUMES
RANGE of services or products sold
TECHNOLOGY required to deliver them
Number of operations IN-HOUSE
What is being PROCESSED

> KEY IDEA

Operations may PROCESS:

CUSTOMERS
CUSTOMER SURROGATES
INFORMATION and/or
PRODUCTS

> KEY IDEA

The operations function may process customers, customer surrogates, information
and/or products

Variations in the operations management role

Variations in complexity

Figure 1.7 Examples of service and product processing

Sector

Service

What is
processed

Examples

Customers

Beauty salons, hospitals,

health farms, physiotherapists Present in the delivery system
and restaurants

Customer
surrogates

Garages, repair shops and dry

cleaning outlets

Information

Tax accountants, passport

offices, lawyers, computing
centres and insurance

Manufacturing Products

Customer involvement in the

process or delivery system

Detached from the delivery system

or process

Chemicals, furniture, motor

vehicles, personal computers,
food and pharmaceuticals

This variation in the nature of what is processed has significant implications for operations management, and we now examine these in more detail.

Variation in output services versus products

You will have noticed throughout this chapter that we have referred repeatedly to the
output of the operations function as services and products. We turn now to look at

> KEY IDEA

The operations OUTPUT can be:

SERVICES (intangible) and/or

PRODUCTS (tangible)

> KEY IDEA

SERVICES are CONSUMED as theyre
provided whereas most PRODUCTS can be
made in advance and STORED

Variations in the operations management role

Variations in output - services versus products
Figure 1.8 Service/product mixes in a range of purchases
Mix

The purchase

100% service

100% product

Health farm
Management consultancy
Computer bureau
Car breakdown maintenance
Regular car maintenance
High-quality restaurant meal
Meal in a fast-food restaurant
Make-to-order, high-cost products
Low-cost consumable products
Vending machines
Note: The purchase mix represented here is meant as a broad indication only; others may consider the
balance to differ from that shown.

But what does all this mean for the operations function? Well, broadly speaking, its aim
remains the same (its objective is always to make the products or provide the services
that are sold), but the nature and characteristics of the operations function vary significantly depending on whether it is required to make a product, process information on
behalf of a customer, provide a service for a customer or some combination of these.
Embodied in these alternatives are different characteristics that either facilitate or restrict
what operations can or cannot do in the processing task. For example, in services the
opportunity to store capacity is limited. If a retail outlet (say) is not busy, the assistants
time cannot in some way be transferred to a future time period when customers are
waiting. In manufacturing, however, a company may decide to make products in times of
low demand to sell in a future period when sales are higher. Similarly, in a service organi Operations
ROLE isthe
both:
zation,
the presence managers
of a customer necessitates
system to respond as quickly as
possible, whereas in a manufacturing company the product eliminates the need for an
immediate
response (as the
customer is not physically
present),
which allows the process
- Demanding,
challenging,
absorbing
and
to be managed to best meet the output and efficiency targets set by the business.

Critical reflections

satisfying; and

Such differences are fundamental and are investigated in more detail in subsequent
- Frustrating
complex
chapters.
This section isand
designed
to alert you to the key points so that you get a better
feel for the types of issue that operations has to manage in one type of organization
DAY-TO-DAY
compared
with another. task requires physical effort
Serving
customers,
processing customer
information
and strategic
making products
Difficult
to BALANCE
day-to-day
and
roleall have
different features and different sets of requirements. Figure 1.9 gives an overview of some
key
dimensions
that are then briefly
Good
management
ofexplained.
operations is key to an

organisations SUCCESS

Figure 1.9 Aspects of customer, information and product processing

Aspects
Nature of the offering

Processing
Customers
Intangible

Information

Products
Tangible

Level of customer involvement in

High
the operations process

Low

Operations capacity

Perishable

Can be stored

Organizational arrangements

Front office

Back office

Quality control

Level of server discretion

Highly specified

Summary
Different SECTORS
- Services vs Manufacturing

TASK of operations manager is the same

- Different focus

Operations TRANSFORMS
- Inputs into outputs that are sold to customers

Critical to overall SUCCESS of an organisation

- Manages 60-70% of people, assets and costs

Revision questions
1 Which of the following is typically NOT the
responsibility of the operations function:
a) Managing the supply chain
b) Selling services and products to customers
c) Converting inputs into outputs that are then sold
to customers

Revision questions
2 Typical inputs into an operations process are:
a) Materials, people, energy, capital and information
b) Services, products and information
c) Performance measurement and control

Revision questions
3 Services are:
a) Tangible items purchased by individuals or
organisations for subsequent use
b) Intangible items that are consumed as they are
delivered
c) Both a) and b)

Revision questions
4 Which of the following affects the size of the
operations task:
a) The number of people involved in the operations
process
b) The number of assets involved in the operations
process
c) Both a) and b)

CASE FOR TUTORIAL

TOO SHORT THE DAY