Chapter 8 - Operations Management and Supply Chain

1.Define the term operations management:

This refers to the management of systems or processes that change resources (such as human resources) into goods and services.

2.Explain operation’s management’s role in business:

The role of operation management is to direct the main procedures that are used to make manufactured goods and product services.

Other types of roles include:

• Forecasting
• Scheduling
• Managing inventory
• Motivating employees
• Assuring quality processes
• Dealing with global locations or relocations


3.Describe the correlation between operation’s management and information technology:

Information technology is used as an assistance tool in an organisation making business decisions. These include making decisions about productivity, costs, flexibility, and quality and customer satisfaction. Operational management information systems are critical for an organisation as the organisation itself needs to make the appropriate, knowledgeable systems. IT allows operational management to determine what goals and objectives an organisation has. The end result of a decision is that there are many options that create an influence on revenues and expenses.

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

Supply chain management refers to the management of information flows between and among stages in a supply chain to maximise total supply chain and effectiveness. Supply chain management’s role in a business is to manage the supply change, raw materials, productions, both goods and services which is significant.



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

The five components of a typical supply chain include the supplier, manufacturer, distributor, retailer and customer.

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

A supply chain refers to the acquirement of raw materials or products from indirect or direct persons. Information technology’s allows a constant smooth run of information or products among customers, transportation providers and suppliers which in turn allows the supply chain to be effective.

Baltzan, Phillips, Lynch, Blakey. 2010. Business Driven Information Systems. McGraw Hill. Sydney, Australia.

Connect Systems. 2010. Supply Chain Management. http://www.connectsystems.eu/index.php?id=303. Date Accessed: 30th May 2010.