ABSTRACT

Chapter 1 has shown the important role played by operations management and operational managers in implementing and achieving organizational goals and objectives. The aim of this chapter is to view operations as micro and macro operating systems, examine their interrelationships and strategic and tactical implications on the performance of the operations management function. Amongst the topics considered are:

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1 What is an operating system? An operating system can be either a micro or a macro system. An understanding of the difference between the two will help to see the link between operational efficiency and business performance

2 What are the internal relationships and their influences on oper ations? There are different functions within a business that can enhance or reduce performance of the operations function. These internal links are identified and investigated

3 What are the external relationships and their impact on operations? The results achieved by the operations function can be influenced by the external factors affecting the operations These are identified and their implications considered

Macro and micro operating systems Manufacturing or service operations are number of interrelated functions designed to produce or provide a predetermined range of products or services. They can be considered as part of a macro (large) operating system which include the firm’s internal organiza tion and external environment, or a micro system at the operating level. For example, various departments at a university can be viewed as micro systems, all part of the total university organization at macro operating level.