OPSCB574 Reflection 1

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OPSCB574

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Business

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Feb 20, 2024

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docx

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1 Reflection 1
2 Reflection 1 Operations Management Working in operations management is about maintaining supply and demand of a company (Cachon & Terwiesch, 2023). There are employees and managers within operations management that work together to not just maintain the efficiency of the work but strive to improve upon it. Operations management requires the control of inefficiencies the company may face, like waste, changes in supply and demand, and inflexibilities to consumer demands (Cachon & Terwiesch, 2023). There are several key operational decisions a firm needs to make to match supply and demand. When a firm decides to go into operation, they first need to decide what they are going to produce and how their product will appeal to consumers. The firm will need to determine the location and costs of their products to be competitive within their market. They will also need to determine how many employees to staff and how much of product to have on inventory. Determining how to improve process efficiency by off-loading a bottleneck is going to depend on the type of work being performed. However, there are four major options that most firms can choose from (Cachon & Terwiesch, 2023): 1. Line balancing that is reassigning activities to others that have the capacity for the process 2. Using technology for automation of certain activities 3. Outsourcing some of the time-consuming activities 4. Adding or replacing an employee at the bottleneck
3 Evaluate the Lean Philosophy The Lean concept is a way of management for firms to eliminate waste by improving efficiency and effectiveness to processes (cite). Just like with the different options for relieving bottleneck, firms have different reasons as to why the Lean concept is important to study. Lean concepts can provide: Better product quality Sustainability for the future Higher profits Better response time to demand shifts The Lean concept is known to work well within the manufacturing industry, but it can work well within the service industry, too. Waste can be found within all industries; all a firm needs to do is look at their process flows to see how it can be improved upon or eliminated. A firm may need to redesign a store to reduce the amount of moving or transportation that need to occur. Or they need strategically place items in specific locations based on how frequently the items will be used. For instance, creating mobile workstations for nail techs prefilled with everything they might need for a customer instead of having them walk back and forth. Or a restaurant may need to utilize a server for taking orders and customer service while another is utilized for bringing out the food during peak business hours. Alternatively, within the service industry there may be inventory waste. For instance, within the service industry, firms may have too much inventory on hand for consumer demand. Excess inventory could lead to spoilage of food, clothing that falls out of fashion, technology that becomes obsolete, which all results in waste. This not only creates a monetary loss from purchasing the goods, but loss in revenue for not being able to sell it. Excess inventory also wastes space that could be utilized for items that do sell and a waste of employee time for those that may have to conduct inventory audits on it.
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