objectives and functions of operations management
Advances in technology make it possible to build better products using fewer resources. While there are countless considerations to be made, many of which are unique to specific organizations or industries, these core operational decisions are strong indications of the mentality service management specialists consider: Choosing where to open a facility, how to lay out the facility, what size is appropriate, and overall how efficiently a given space can be used relative to the cost are key considerations. By linking operations and operating strategies with the overall strategy of the organization (including engineering, financial, marketing, and information system strategy) synergy can result. “Management is a set of principles relating to the functions … Management in some form or another is an integral part of living and is essential wherever human efforts are to be undertaken to achieve desired objectives. Improving overall quality through measuring consumer satisfaction, planning facilities for optimal use of space, and effective scheduling are a few examples of considerations service operators consider. January 2000. This, of course, will impact upon other systems linked to the conveyor belt and the full implications of all these changes will have to be assessed and compared to the cost of the price increase on the original conveyor belt. An opposite example of the strategic implications of the input/output transformation process is 3M’s decision in the 1980s to stop manufacturing VHS tape for video players and recorders. Short-term scheduling, on the other hand, is concerned with production planning for specific job orders (who will do the work, what equipment will be used, which materials will be consumed, when the work will begin and end, and what mode of transportation will be used to deliver the product when the order is completed). This decision answers the basic question: How will the product be made? ), or a government agency; all organizations must strive to maximize the quality of their transformation processes to meet customer needs. purchase cutting tools and other fabrication equipment. The focus is also to make sure that there is little or no wastage during and after the production process, through the effective use of the firm’s resources. But the growth in high-tech business applications has created new competitors as well, making it important for businesses to try to register advantages in any and all areas of operations management. A hair dresser rarely gives the same haircut twice and, even if they do, it would be cut to fit a different individual. Once a product is developed and the manufacturing system is designed, it must be implemented, a task often more easily discussed than carried out. Facility location is a strategic decision because it is a long-term commitment of resources that cannot easily or inexpensively be changed. Sharma, Anand, and Patricia E. Moody. The result of this operations innovation is better service to Toshiba customers and a strong and profitable strategic partnership between UPS and its customer, Toshiba. Efficient organization operations are a vital tool in achieving competitive advantage in the daily contest for customers/clients. They must also carry out a sales and marketing function, an accounting function, and an administrative function to manage employees and the business as a whole. Capacity is a measure of an company's ability to provide the demanded product in the quantity requested by the customer in a timely manner. Each execution is measured relative to the specific instance and that specific consumer, making tools like NPS surveys and other measures of individual satisfaction highly useful in optimizing. Service operations are simply the application of operations management to an intangible good (i.e. One importance of operation management is to improve the overall productivity of the business. Toshiba needs to provide a repair service to its laptop computer customers. Product development involves determining the characteristics and features of the product or service to be sold. Global Text Project, Business Fundamentals. How to Paraphrase to Create Plagiarism-Free Essays? Product design is a critical task because it helps to determine the characteristics and features of the product, as well as how the product functions. The other two areas of strategic importance to the organization are marketing and finance. Universal Publishers, March 2005. Operations is one of the three strategic functions of any organization. "Waiting: Integrating Social and Psychological Perspectives in Operations Management." They also provide opportunities for the organization to achieve unique competitive advantages that attract and keep customers. Operations Management: Blueprint for a commercial operations management solution. IF the system design function was done thoroughly, it will have rendered an implementation plan which will guide activities during implementation. Over time, operations management has grown in scope and increased in importance. This function fulfils the business objective … Operations management is the management of processes that transform inputs into goods and services that add value for the customer. The new repair process is much more efficient: The total time to get a computer repaired is now about two days. The Perfect Engine: Driving Manufacturing Breakthroughs with the Global Production System. In the VHS tape market 3M had no proprietary manufacturing advantage, as there were many Asian competitors that could produce high-quality VHS tape at lower cost. It should begin with an assessment of customer needs and eventually grow into a detailed product design. Magnuson Coe, Thomas. An easy way to remember what a service is (compared to a product) is through using the ‘5 I’s of Services’: This definition offers a great deal of insight when applied to the concept of operational management. Long-range decisions could include the number of facilities required to meet customer needs or studying how technological change might affect the methods used to produce services and goods. The design process: The process of designing a product is a fundamental function for operations management, as by specifying the production process the organisation will be able to meet the demands of the customers and to guarantee a profit for which will in return achieve the business objective. July 3, 2012. The scale economy or business component involves applying the proper amount of mechanization (tools and equipment) to make the organization's work force more productive. 3M manufactures a top-quality adhesive tape called “Magic Tape”. Maximizing output through planning properly can minimize opportunity costs and maximize revenue, and plays an integral role in operational management of services. The time horizon for long-term planning varies with the industry and is dependent on both complexity and size of proposed changes. DFMA focuses on operating issues during product design. This post highlights the definitions, importance, and function of management concepts. As the ‘5 I’s of Services’ indicate, most services tend to be completely unique. Magic Tape is used for everyday taping applications, but it offers attractive features that most other tapes do not, including: For several decades, 3M has enjoyed a substantial profit margin on its Magic Tape product because 3M engineers make the manufacturing equipment and design the manufacturing processes that produce Magic Tape.
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