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1 - What is Operations Management and Why is it Important?

Published online by Cambridge University Press:  05 June 2012

Danny Samson  and
Prakash J. Singh
By
Prakash J. Singh
Danny Samson
Affiliation:
University of Melbourne
Prakash J. Singh
Affiliation:
University of Melbourne
Prakash J. Singh
Affiliation:
University of Melbourne
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Summary

Learning objectives

After reading this chapter, you should be able to:

  • define the meaning of ‘operations management’

  • explain the role of operations management within organisations, including how it relates to other functional areas

  • describe the differences and similarities between goods and services, and show how these affect our understanding of operations management

  • describe the decisions that fall within the field of operations management;

  • discuss the trends that are encouraging organisations to focus on their operations

  • trace the historical evolution of the field

  • describe typical careers that can be developed within the operations management area.

Box 1.1: Management challenge: Woolworths Limited

Woolworths Limited is the largest retailer in Australia, collecting about 18 cents in every dollar spent in the retail industry. With a nominal capital of 25,000 pounds (approximately $A70,000 today), Woolworths opened its first store in Sydney in 1924. The company posted annual revenue of close to $38 billion, and net operating profit of over $1 billion in 2006. Along with its flagship Woolworths and Safeway supermarkets (which has close to 40 per cent market share in that industry sub-sector), it also owns Dick Smith Electronics, Tandy Electronics, Big W discount store chain, and Dan Murphy's liquor stores, among others. It has also formed alliances with companies such as Caltex to retail petrol. Currently, it operates close to 3,000 stores, petrol stations and hotels in Australia and New Zealand. The company employs more than 140,000 people. […]

Type
Chapter
Information
Operations Management
An Integrated Approach
 , pp. 3 - 36
Publisher: Cambridge University Press
Print publication year: 2008

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References

Bowman, E. H. and Fetter, R. B. 1967. Analysis for Production and Operations Management. 3rd edn. New York: McGraw Hill/Irwin.Google Scholar
Finch, B. J. 2006. Operations Now: Profitability, processes, performance. 2nd edn. Boston: McGraw-Hill.Google Scholar
Heizer, J. and Render, B. 2006. Principles of Operations Management. Upper Saddle River, NJ: Pearson. p. 7.Google Scholar
Martinich, J. S. 1997. Production and Operations Management: An applied modern approach. New York: John Wiley.Google Scholar
Meredith, J. and Shafer, S. M. 2007. Operations Management for MBAs. 3rd edn. New York: John Wiley.Google Scholar
Russell, R. S. and Taylor, B. W. 2006. Operations Management: Quality and competitiveness in a global environment. 5th edn. New York: John Wiley. p. 6.Google Scholar
Schmenner, R. W. and Swink, M. 1998. ‘On Theory in Operations Management.’ Journal of Operations Management, 17: 97–113.CrossRefGoogle Scholar
Slack, N., Chambers, S., Johnston, R., and Betts, A. 2006. Operations and Process Management: Principles and practice for strategic impact. Harlow, England: Prentice Hall.Google Scholar
Womack, J. P., Jones, D. T., and Roos, D. 1990. The Machine that Changed the World. New York: Rawson Associates.Google Scholar

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