OPERATION MANAGEMENT

Number of weeks: 4 weeks

This module is your third section in unit 4. The aim of this module is to help you gain an understanding of operation

management in an integrated context within the organisation and the wider environment, drawing on the whole of the

A level subject context.

By the end of this module you will be able to:

  • understand critical path analysis;
  • examine the function of R&D in a business;
  • examine the relationship of R&D to product design, product life cycles and market research;
  • examine and understand how business decisions are based on the analysis of quantitative and qualitative factors;
  • analyse the application of IT within and between business organisations;
  • explain the business approach to location.

OPERATION MANAGEMENT - KEY BUSINESS CONCEPTS & TERMS.

Key terms / Definition
Critical path analysis
Management by exception
New work analysis
Computer Aided Design (CAD)
Computer Aided Manufacturer (CAM)
Innovation
Invention
Patent
Research and Development
(R&D)
Fixed costs of a location
Variable costs of a location
Infrastructure
Multinational organisation
Electronic Data Interchange (EDI)
Electronic Point of Sale (EPOS)
Manufacturing Resources Planning (MRP 11)
Internet
Intranet
Net present value
Cumulative cash flow
Qualitative factors
Quantitative factors
Margin of Safety

Scheme of work

Syllabus Area / Topics / Suggested reading/reference
Productive Efficiency / Research and Development – functions; the importance of technology in innovation and developing product quality; links between R&D and product design, product life cycles and market research.
Critical path analysis – drawing a simple network, calculating the Earliest Start Time and Latest Finishing Time, identifying the critical path, calculating total float.
Implications of CPA for the business, time based management, decision making and controlling working capital / Marcouse U54. David Hall U99 – 2nd edition.
Times 100, 5th edition, “Improving the Performance of Manufacturers”
Business Review, Sept 2001, “First mover advantage”
Business Review, April 2002, “Managing efficiency”
Marcouse U 53. David Hall U104 2nd edition.
Controlling Operations / Application of IT within and between organisations - the impact on stock control, production- CAD/CAM, communications, accounting, employment and location. / Marcouse U58. David Hall U98– 2nd edition.
Approaches to Decision Making / Facilities – decision-making based on breakeven analysis and capital invest appraisal & qualitative factors.
Regional location- the business approaches to location decisions - costs, resources, the market, government intervention and qualitative factors.
International location – Multinational strategies, including avoiding tariffs and protectionism and achieving high economies of scale. / Marcouse U16 and U26. David Hall U54, U64- 2nd edition.
Marcouse U57. David Hall U100– 2nd edition.
Marcouse U57. David Hall U100– 2nd edition.

1

T Dohery