Operation Management criteria
The task of production and operations management is to manage the efforts and activities of people, capital, and equipment resources in changing raw materials into finished goods and services.
Operations management is an area of business that is concerned with the production of goods and services, and involves the responsibility of ensuring that business operations are efficient and effective. It is the management of resources, the distribution of goods and services to customers, and the analysis of queue systems.
Pricing is one of the four p 's of the marketing mix The effective price is the price the company receives after accounting for discounts, promotions, and other incentives.
Price lining is the
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More technically, this form of pricing exploits the general cognitive bias of aversion to extremes. This practice is known academically as "framing". By providing three options (i.e. small, medium, and large; first, business, and coach classes) you can manipulate the consumer into choosing the middle choice and thus, the middle choice should yield the most profit to the seller, since it is the most chosen option.
Demand-based pricing is any pricing method that uses consumer demand - based on perceived value - as the central element. These include : price skimming, price discrimination and yield management, price points, psychological pricing, bundle pricing, penetration pricing, price lining, value-based pricing, geo and premium pricing. Pricing factors are manufacturing cost, market place, competition, market condition, Quality of product.
Multidimensional pricing is the pricing of a product or service using multiple numbers. In this practice, price no longer consists of a single monetary amount (e.g., sticker price of a car), but rather consists of various dimensions (e.g., monthly payments, number of payments, and a down payment). Research has shown that this practice can significantly influence consumers ' ability to understand and process price information
Questions involved in pricing
Pricing involves asking questions like:
• How much to charge for a product or service? This question is that a typical starting point for
Production management is the organising and planning of staff and assets required to produce products and services, this could be ranging from organising staff to install equipment located on another continent through to the selection and purchasing of new plant to increase production in a manufacturing facility.
James, T. (2011) defines Operations Management as the management of the processes which aid production of goods and or services. This implies that all production activities must be coordinated well to ensure a lean process of resource management is adopted.
Operations Management in an organisation is repsonsible for managing and in making decisions concerning the activities that convert inputs into outputs , that is goods and services. This covers both short term actvities as well as longer term activities to meet strategic goals. Inputs can be the raw materaials need to manufacture goods such as furniture or the computers needed to create a service like online shopping site. Operation management’s role is to make decisions to improve how operation activities function, for example, to improve the final quality of the output or to change production methods to be more efficient in terms of cost and in time.
Operations management focuses on managing the processes of producing and distributing products and services. Operations activities often include product creation, development, production and distribution. It deals with all operations within the organization. Related activities include managing purchases, inventory control, quality control, storage, logistics and evaluations. The nature of how operations management is carried out in an organization depends very much on the nature of products or services in the organization, for example, retail, manufacturing, wholesale, etc.
Operations management is concerned with overseeing, designing and controlling the process of production and then turning raw materials and resources into outputs of finished goods or services. It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed and effective in terms of meeting customer requirements. Qantas has grown to be Australia 's largest domestic and international airline. Its forte is acquiring customer satisfaction
Pricing decisions are strategic and critical to the success of your company. The prices you charge for your products affect demand, thus causing a ripple effect across your company 's output, revenues, costs, and income. With a sound pricing strategy, your company is in a better
Operations Management is defined as how we deal with the design and management of products, processes, services and supply chains. It considers the acquisition, development, and utilization of resources that organizations need to deliver the goods and services their clients want.
Operations Management is the set of activities that creates value in the form of goods and services by transforming inputs into outputs. The operations management of any organization involves the design, operation, and improvement of the systems that create and deliver the primary products and services of
Price is the value which is paid by the buyer to the manufacturer against the products and services. It is the value of the product mentioned by the seller to the consumers Pricing decisions are one of the crucial factors that shapes by cost factors, profit margin, and possibility of sales at different price levels and the competitor's pricing policy as well as with the number of existing competitors in the market. Pricing is the most critical element of the marketing mix and firms must make strategic preferences about how to price their product to achieve their business goals in the best possible manner by considering the demand and supply relationship. Unlike the three
Optimal pricing policy is also known as perfect price discrimination, which means that a company segments the market into distinct customer groups and charges each group exactly what it is willing to pay. The optimal price and volume refer to the selling price and volume at which a company maximizes its profits. It is impossible for a small-business owner to know exactly what consumers are willing to pay because they would have to poll them at regular intervals. Companies can make reasonable assumptions based on historical sales patterns and set his product mix and pricing strategy accordingly (Basu, 2013)
Source:http://www.smallbusinessnotes.com/operating/marketing/pricing/valuebased.htmlHow high can a price be before the product or service is priced out of the market?To understand the customer 's perception of the value of your product or service, look at more subjective criteria such as customer preferences, product benefits, convenience, product quality, company image and alternative products offered by the competition. * How do your customers describe what they get for their money? * Do they save a great deal of money or time by purchasing your product or service? * Do they gain a competitive advantage from
Pricing is one of the important elements of the markets mix, which generate a turnover for the organization and must reflect supply and demand relationship. Pricing a product too high or too low could mean a loss of sales
Operations management is generally described as the planning, arrangement, and control of activities that change raw materials or an organization's input into finished products and services. The overall activities covered by operations management include the creation, development, manufacture, and distribution of products. The concept also relates to various activities such as inventory control, controlling purchases, quality control, logistics, storage, and evaluation ("Operations Management in McDonalds", n.d.). Since operations management covers the entire operations in an organization, it mainly focuses on the efficiency and effectiveness of the firm's processes.
A company’s pricing strategy can offer a low price to stimulate demand and be able to gain market share as it focuses on specific economies in administration, production and marketing, striving to be as lean as it can without diminishing the overall level of quality it chooses to produce and be known for in the market (Heiman, 2010). One of the many difficult decisions a company has is to have a detail understanding of planning the costs that are involved in producing a product, delivery, service as well as factoring in the organization to set their pricing. Therefore, a critical component of the pricing is to understand the market demand, life cycle and the competitors actions would assist in deciding how to price your products and
Operations Management (OM), as a field, deals with the production of goods and services. It provides a detailed layout of the businesses to the operations managers to assist them