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Part One
Introduction
Figure 1.2 Operations management uses resources to appropriately create outputs that fulfil defined market
requirements
The role of operations
management in smaller
organizations often
overlaps significantly
with other functions
Operations management in the smaller organization
Operations management is just as important in small organizations as it is in large ones.
Irrespective of their size, all companies need to produce and deliver their products and
services efficiently and effectively. However, in practice, managing operations in a small or
medium-size organization has its own set of problems. Large companies may have the resources
to dedicate individuals to specialized tasks but smaller companies often cannot, so people
may have to do different jobs as the need arises. Such an informal structure can allow the
company to respond quickly as opportunities or problems present themselves. But decision
making can also become confused as individuals’ roles overlap. Small companies may have
exactly the same operations management issues as large ones but they can be more difficult
to separate from the mass of other issues in the organization. However, small operations can
also have significant advantages; the short case on Acme Whistles illustrates this.
Short case
Acme Whistles 2
Acme Whistles can trace its history back to 1870 when
Joseph Hudson decided he had the answer to the
London Metropolitan Police’s request for something to
replace the wooden rattles that were used to sound
the alarm. So the world’s first police whistle was born.
Soon Acme grew to be the premier supplier of whistles
for police forces around the world. ‘In many ways’, says
Simon Topman, owner and Managing Director of the
company, ‘the company is very much the same as it
was in Joseph’s day. The machinery is more modern,
of course, and we have a wider variety of products, but
many of our products are similar to their predecessors.
For example, football referees seem to prefer the
traditional snail-shaped whistle. So, although we have
dramatically improved the performance of the product,
our customers want it to look the same. We have also
Source: Simon Topman/Acme Whistles