Introduction
Operations and process management it the activity of managing the recourses and processes that produce products and services. All organizations produce some mix of products and services.
Operations functions is the part of the organization that produce those products and services. A process is an arrangement of resources that transform inputs into outputs that satisfy internal and external customer needs. The difference between operations and processes is their sale and complexity.
Aggregation Levels: Supply Chainc -> Operations -> Processes -> Activities
It is imprtant to have a process perspective within an organization in order to understand the organization’s effectiveness, efficiency and value drivers. Understand what are its inputs (both transforming and transformed inputs), what does the operation actually does, what are its outputs and how those outputs contribute to the final goal.
Processes can be classified according to 4V’s:
- Volume of output: high volume/repetition/frequency of output (try to systemize)
- Variety of activities: engages a wide variety of activities (more complex, difficult to systemize)
- Variation of demand: is demand seasonal, predictable (study capacity cushions)
- Visibility to customers: how much of the processes are experienced directly by customers
Tags: 4v's, activities, Operations, processes, supply chaing