Management Extra: Quality and Operations Management

As far as organisations are concerned, operations are those transformation processes which convert inputs to outputs-see Figure 3.1.
The following definitions apply to the model:
Inputs-labour, materials, capital, data (resources)
Transformation processes-business operations and production processes
Outputs-goods, services, profits and wages, information (products).
High-quality operations do not waste time having to re-do things.
All organisations have operations of some sort or other. That is the purpose of the organisation-to use operations to produce goods and services. They don't have to be goods or manufacturing operations; they can be information or service operations-see Table 3.1.
| Organisation | Inputs | Transformation processes | Outputs |
|---|---|---|---|
| Online insurance provider | IT staff, Web investment, insurance and risk assessment expertise | Selling insurance over Internet | Insurance policies |
| Microsoft plc | Code, data, IT skills, reinvesting, high-tech offices | Programming, Web development | Software, MSN (Web portal) |
| Local football team | Kit, players, equipment, pitch | Training, playing games, scoring goals | Goals, championship, cups |
| British Airways (BA) | Pilots, planes, groundcrew, passengers, freight, data | Selling tickets, flying people and materials from one place to another, processing schedule data | Tickets sent out, people/materials transported to destination, travel information |
| Tesco | Employees, wholesale goods, supermarkets, website | Selling retail goods and services, giving customer service | Products taken away by customers, customer queries answered |
Figure 3.1 is a simple model. Of course, at any one time, an organisation may have hundreds or thousands of operations going on-large or small-from answering...