5.1 Introduction to operations management

Operations management transforms inputs such as materials, labour, information and capital into outputs while balancing quality, cost, speed, dependability and flexibility.

Operations choices connect directly to strategy: a low-cost strategy needs efficient flow, while a premium service may prioritise quality and responsiveness. Bottlenecks and variability affect the whole system.

Trace an input through the transformation and identify which performance objective the decision changes.

A meal-delivery firm redesigns kitchen flow to reduce waiting time; the change lowers lead time but must preserve food safety and accuracy.

Operations is not only manufacturing; services also transform resources through people, information and processes.