What is Operations Management? | Rowtons Training by Laurence Gartside
Summary
TLDRLaurence Gartside from Rowtons Training demystifies operations management, highlighting its role in orchestrating the processes behind an organization's core products and services. The video explains how operations managers oversee daily activities, transforming inputs into valuable outputs across various industries. It covers key operational functions like demand forecasting, capacity planning, and performance management, emphasizing the discipline's importance in aligning operational strategy with business objectives for competitive advantage.
Takeaways
- đ§ Operations management is the discipline that oversees the processes and activities involved in creating and delivering an organization's core products and services.
- đ ïž Business operations encompass the daily activities necessary for an organization to create value and generate profit, functioning alongside other departments like marketing and finance.
- đ Operations are about 'doing': making, helping, and delivering the real work that satisfies customer needs.
- âïž Examples of operations include a coal mine extracting coal, an airline transporting passengers, a restaurant serving food, and a digital marketing agency creating content.
- đ The transformation of inputs like labor, machinery, materials, and expertise into higher value outputs is a key function of operations.
- đ Operations management involves coordinating resources, forecasting demand, capacity planning, and demand management to ensure efficient operations.
- đ Scheduling is a critical part of operations management, involving planning and decision-making regarding job sequences and responding to disruptions.
- đ Resource requirements planning is essential for operations, akin to planning a dinner party with guests, dietary needs, shopping lists, and preparation timelines.
- đ Operations management is crucial from the initial design phase of a business, including equipment, staffing, layout, and processes to meet delivery goals and quality standards.
- đ Performance management in operations involves setting metrics, collecting data, analyzing, and acting on it to improve and track operational efficiency.
- đ Effective operations management is about creating value by designing and running systems and processes that are both effective and efficient.
Q & A
What is operations management?
-Operations management is the discipline of managing the activities and processes that create and deliver an organization's core products and services.
Who is Laurence Gartside and what does he do?
-Laurence Gartside is a professional who provides online training and consultation in business operations management through his site, Rowtons Training.
What are business operations?
-Business operations are the core daily activities that an organization performs to create value and earn a profit, alongside other primary functions like marketing or finance.
How do operations transform inputs into outputs?
-Operations transform inputs such as labor, machinery, materials, energy, and expertise into higher value outputs, such as coal from a mine or passengers transported by an airline.
What are the fundamental challenges faced by operations managers?
-Operations managers face challenges like designing, planning, running, and improving systems, coordinating input resources, forecasting demand, capacity planning, demand management, scheduling, and resource requirements planning.
What is capacity planning in operations management?
-Capacity planning is the act of making long-term decisions about what the organization wants to be capable of delivering in terms of products or services, both in the short term and far into the future.
How does demand management differ from other aspects of operations management?
-Demand management involves actively influencing and shaping demand to keep it within the organization's capabilities, ensuring a regular flow of work that can be efficiently delivered.
What is the role of scheduling in operations management?
-Scheduling in operations management involves making plans and decisions about when and in what sequence jobs should be done, addressing daily disruptions and urgent changes, as well as strategic decisions for delivery objectives.
Why is resource requirements planning important?
-Resource requirements planning is crucial for ensuring that all necessary resources, such as staff, materials, and equipment, are available and ready when needed to meet operational demands.
How does operations management contribute to the strategic alignment of a business?
-Operations management contributes to strategic alignment by ensuring that the operations strategy supports the overall business strategy, potentially offering a competitive edge through lowest cost, fastest delivery, or highest level of customization.
What is performance management in the context of operations management?
-Performance management in operations management involves designing metrics, collecting data, analyzing, and acting on it to understand what is working well and identify areas for improvement, tracking progress over time.
Outlines
đ§ Operations Management: The Backbone of Business
Operations management is the critical function that oversees the activities and processes responsible for creating and delivering an organization's core products and services. It is a discipline that often operates behind the scenes but is essential to the success of any business. The paragraph introduces Laurence Gartside, an expert in business operations management, who explains that operations managers are involved in the design, planning, execution, and improvement of systems that transform inputs into valuable outputs. They coordinate resources, forecast demand, manage capacity, influence demand, schedule jobs, and plan resource requirements. The analogy of a dinner party is used to illustrate the complexity of operations management, highlighting the need for careful planning and coordination to ensure efficiency and effectiveness.
đ Operations Management: From Strategy to Performance
This paragraph delves into the strategic role of operations management, emphasizing its importance in the planning and design phase of a business, such as a factory or restaurant. It discusses how operations management aligns with the overall business strategy to provide a competitive edge, whether through cost efficiency, speed of delivery, or customization. The paragraph also touches on performance management within operations, which involves setting metrics, collecting data, and analyzing performance to identify areas for improvement. The summary concludes with an invitation for viewers to engage with the content further, through likes, subscriptions, and comments, and to explore more resources on the topic.
Mindmap
Keywords
đĄOperations Management
đĄCore Products and Services
đĄValue Creation
đĄCapacity Planning
đĄDemand Management
đĄScheduling
đĄResource Requirements Planning
đĄPerformance Management
đĄStrategic Alignment
đĄCompetitive Edge
đĄEfficiency and Effectiveness
Highlights
Operations management is crucial for managing the activities and processes that create and deliver an organization's core products and services.
Laurence Gartside provides online training and consults in business operations management through Rowtons Training.
Business operations are the core daily activities that create value and earn a profit.
Operations are one of the primary functions of any organization, alongside marketing and finance.
Operations involve the 'doing' aspect of a business, including making, helping, and delivering.
Examples of operations include a coal mine, an airline, a restaurant, and a digital marketing agency.
Operations transform inputs like labor, machinery, and materials into higher value outputs.
Operations managers design, plan, run, and improve systems that transform inputs into valuable outputs.
Operations management involves coordinating input resources to be ready where and when they are needed.
Forecasting future demand is essential for making decisions on labor, space, materials, and other resources.
Capacity planning involves making long-term decisions on what the organization wants to be capable of delivering.
Demand management is about actively influencing and smoothing demand to keep a regular flow of work.
Scheduling involves making plans and decisions about when and in what sequence jobs should be done.
Resource requirements planning is crucial for ensuring all necessary resources are available for operations.
Operations management is involved in the design of systems and processes before a factory or restaurant is even built.
Performance management in operations involves designing metrics, collecting data, and analyzing performance.
Operations management aims to create value by designing and running effective and efficient systems and processes.
Rowtons Training offers courses on operations management, supply chain, logistics, inventory, and performance improvement.
Transcripts
Operations management is about managing the activities and processes that create Â
and deliver an organization's core products and services. But what is this mysterious discipline? Â
And what do these people do who often behind the scenes are responsible for basically everything Â
that gets made or done in the world? Hi, I'm Laurence Gartside I give online training and Â
consults in business operations management through my site, rowtons training helping you Â
level up your business operations fundamentals. If operations managers manage operations then first Â
what are they? Business operations are the core daily activities that an organization does every Â
day to create value and earn a profit. It's one of the primary functions or departments of any Â
organization alongside the likes of marketing or finance. Operations are the doing, making, Â
helping, delivering the real work that creates and provides what the customer wants. From a coal mine Â
digging up coal, an airline transporting people, a restaurant cooking food and serving customers, Â
a digital marketing agency doing its graphic design and setting up ad campaigns. Â
The operations are the core activities of those businesses, the systems that transform inputs into Â
higher value outputs. The coal mine has inputs of labor, machinery, materials, energy, expertise and Â
transforms it into coal in lorries which is much more valuable than coal in a mountain. An airline Â
also has inputs of labor, machinery, planes, materials, energy and expertise and transforms Â
people who are in one city to people who will pay to be in another city. The marketing agency Â
still uses machines mostly just laptops and also labor, energy, and expertise and creates graphics Â
and Instagram news feeds that their clients pay handsomely for. Is this really so different from Â
a factory with inputs of labor, machines, energy, materials expertise and transforms them into other Â
objects that customers will pay more for than the inputs that went in. For the operations Â
managers in each of these organizations so many of the fundamental challenges are the Â
same. Operations managers design, plan, run and improve these systems. Operations management Â
involves coordinating the input resources to be ready where and when they are needed, Â
forecasting of future demand to allow decisions on how much labour space materials are needed. Â
Capacity planning is closely linked and is the act of making longer-term decisions of Â
what the organization wants to be capable of delivering both next week but also five or Â
ten years into the future. Demand management is about actively influencing your demand, Â
keeping it within your capabilities, smoothing it to keep a regular flow of work that can be Â
efficiently delivered. Scheduling is making plans and decisions about when and in what Â
sequence jobs should be done both reacting to the daily disruptions and urgent changes Â
but also strategic decisions for what delivery objectives the business wants to be optimized for. Â
Then you've got resource requirements planning, oh yeah, that's my go-to dinner party topic Â
but Hey no resource requirements planning and there won't be a dinner party. How many guests Â
special dietary requirements, shopping lists made, well-timed supermarket runs to have nice fresh Â
ingredients, chopping and preparing done well ahead of time and being familiar with the recipe Â
to plan when everything has to be in the oven so that it's ready right on time for dinner. Â
See? There's more operations managers out there than you thought. Scale that up to a restaurant Â
of 10 staff, a hundred different ingredients having to be bought stored prepared and Â
cooked for a hundred customers served lunch and dinner each day or a 50 million dollar factory, Â
500 staff and a few hundred million dollars of goods per year flowing through all being prepared Â
to a tight schedule and you're getting some of the essence of what the Operations Managers are up to. Â
Before the factory or restaurant even gets built operations management is Â
the essential discipline to design the system, what equipment staffing layout Â
processes will be required to be able to deliver a certain set of capabilities, a certain capacity Â
at a desired quality level within a certain output rate how should the operations strategy align with Â
the overall business strategy to offer a business winning competitive edge perhaps through lowest Â
cost or fastest delivery or by having the highest level of customization to the product or service Â
and then, once everything is up and running how do we know if we're doing a good job? Operations Â
management involves performance management, designing essential metrics, collecting relevant Â
data, analyzing, presenting, sharing and acting on it to understand what is and isn't working well, Â
identify improvements and track progress. Operations management is about getting stuff Â
done, designing and running effective and efficient systems and processes to create Â
value for the world. Thank you for watching this video, please remember to thumbs up, subscribe, Â
ring the bell and share your insights below. And, if you want to learn more about Operations Â
Management, Supply chain, logistics, inventory, performance improvement, well, watch my next video Â
or check out my library of courses on my site rowtonstraining.com. All right then, crack on!
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