TOPIC 1: OPERATIONS
Role of Operations Management
- strategic role of operations management - cost leadership, good/service differentiation
- goods and/or services in different industries
- interdependence with other key business functions
Strategic role:

Hickey, Nader & Williams (2011) Cambridge HSC Business Studies, 2nd edition, Cambridge University Press, Melbourne, p.3
This diagram provides a good overview of the supply chain which is effectively what comes under Operations Management.
TASK: draw your own diagram with pictures or cartoons in the box for a particular industry. Think about how it would differ for a service industry. Use this diagram for revision purposes.
This diagram provides a good overview of the supply chain which is effectively what comes under Operations Management.
TASK: draw your own diagram with pictures or cartoons in the box for a particular industry. Think about how it would differ for a service industry. Use this diagram for revision purposes.
Cost leadership:
Goods and services

TASK: Apply these characteristics to various industries.
Source: Chapman et al (2011), Business Studies in Action, 4th edition, John Wiley & Sons, Milton Qld, p.12
Source: Chapman et al (2011), Business Studies in Action, 4th edition, John Wiley & Sons, Milton Qld, p.12
TASK: Complete this activity (from Hickey, Nader & Williams (2011) Cambridge HSC Business Studies, 2nd edition, Cambridge University Press, Melbourne, p.10).
Interdependence with other key business functions
The balance between cost and quality is something that needs to be discussed between business function areas. Products with the best quality cost more: the inputs, the workers, the equipment used and so on, all cost money. The finance department would be concerned about the costs and Marketing needs to know whether to market the product as value for money, premium quality worth the extra expense or something in between. HR is concerned with the number of employees required, the training and expertise needed and the costs involved. This video demonstrates some of the thinking that goes into the cost/quality decision: