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Unit Reference Number
Unit 03: Operations Management
Qualification Time (TQT)
Learning Hours (GLH)
Number of Credits
Mandatory / Optional
Unit Grading Structure
Pass / Fail
Aims: Unit 03: Operations Management
The aim of this unit is to provide learners with an understanding of
the production/operations management function in both manufacturing and service
industries and to introduce key issues and techniques in operations management.
Learning Outcome – The
Assessment Criterion –
The learner can:
the nature and importance of operations management.
why operations management is important for organisations.
the operations functions of a selected organisation.
the operations management process of a selected organisation using relevant
able to evaluate the link between operations management and strategic
the importance of the ‘Three Es’ to organisations.
the impact of the tension between cost minimisation and quality maximisation.
Evaluate the significance of the five performance objectives that
underpin operations management to organisation.
able to assess how to organise a typical production process.
how linear programming adds value to a given production process.
Evaluate critical path analysis and network planning.
the need for operational planning and control in a selected production
able to apply relevant techniques to the production of Unit 03: Operations Management
a set of clearly defined operational outcomes for a selected organisation.
a network plan indicating the resultant critical path.
how quality management techniques are applied to improve operations in a
Learning Outcomes 1 and 2
and importance of operations management
Operations management: a
definition of Operations Management (OM) and its key elements; importance of
OM for all organisations; impact on OM of changes in the business environment
and in achieving strategic objectives; activities of core functional areas and
their interrelationships; differences and similarities between services and products
Learning Outcomes 1, 2 and 3
functions and processes
Operations function: the
management of resources for the production and delivery of goods or services;
the role of OM in achieving strategic objectives; activities of core
functional areas and their interrelationships; differences and similarities
between services and products; impact of environmental issues; impact of
ethical behaviour; role of the supply chain;
input-transformation-output process; processes
hierarchy; characteristics of operations processes e.g. four Vs – volume,
variety, variation, visibility; business process modelling, lean management
techniques, integration of supply chain e.g. Just in Time (JIT);
Learning Outcomes 2 and 3
efficiency and strategic operations
The 3 Es: economy; efficiency
Time, resources, budgets;
external analysis, e.g. PESTLE; links and differences between operations
management and strategic planning;
the paradox: efficiency (thrift) versus effectiveness (quality)
The five OM performance
objectives: cost; dependability; flexibility; quality and speed; internal and
external benefits of excelling in each performance objective; trade-offs
Learning Outcomes 3 and 4
techniques, planning and control
Linear programming -
definition and applications in planning and production; Critical Path
Analysis; flow charts, network planning; activities involved in capacity
planning; inventory planning; project management and quality assurance/control
plan, monitoring and control
Using planning techniques,
e.g. Critical Path Analysis, meeting the requirements; Outcome determination:
the five performance objectives
Quality assurance and quality
control mechanisms, fish bones; quality circles; variance analysis, six
sigma, product quality and service quality, benchmarking; best practice;
self- assessment; vision; continuous improvement; quality characteristics;
importance of quality
Assessment: Unit 03: Operations Management
To achieve a ‘pass’ for this unit, learners must provide evidence to
demonstrate that they have fulfilled all the learning outcomes and meet the
standards specified by all assessment criteria.
Learning Outcomes to be met
Assessment criteria covered
All 1 to 4
All ACs under LO 1 to 4
Chaffey, D. (2009) E-business
and e-commerce management: Strategy, implementation and practice. Harlow:
(2007) Operations Management.
Hampshire, United Kingdom: John Wiley and Sons
Hugos, M. H. (2011) Essentials of Supply Chain Management. Chichester: Wiley.
(2010) Operations Management: Theory and
Practice. New Delhi: Dorling Kindersley (pvt.) Limited.
(2005) The Resilient Enterprise:
Overcoming Vulnerability for Competitive Advantage. Cambridge, MT: MIT
(2006) Operations Management. 5th
edition. London: FT/Prentice Hall
and Kilger, C. (2008) Supply Chain
Management and Advanced Planning: Concepts, Models, Software and Case Studies.
Turban, T., Lee, J. K., King, D., Liang, T. P.
and Turban, D. (2010) Electronic Commerce
2010: A Managerial Perspective. 6th Edition. New York: Pearson Education
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