INTRODUCTION
The very essence of any business is to cater needs of customer by providing services and goods, and in process create value for customers and solve their problems. Production and operations management talks about applying business organization and management concepts in creation of goods and services.
1.1. PRODUCT
Though many authors define the product with Consumer orientation, it is better for us to deal with different angles, because it will be helpful for us to understand the subject of production and Operation Management.
(i) For a Consumer: The product is a combination of or optimal mix of potential utilities. This is because every consumer expects some use or uses from the product. Hence he/she always
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Above discussion about product, production and management will help us to understand what exactly the Production Management or Production, and Operations Management is.
1.4. OPERATIONS MANAGEMENT – AN OVERVIEW
Operations Management is the conversion of inputs into outputs, using physical resources, so as to provide the desired utility/utilities of form, place, possession or state or a combination there-of to the customer while meeting the other organizational objectives of effectiveness, efficiency and adaptability. It distinguishes itself from other functions such as personnel, marketing, etc. by its primary concern for ‘conversion by using physical resources’. There should be a number of situations in either marketing or personal or other functions, which can be classified or sub-classified under Production and Operations Management. For example, (a) The physical distribution of items to the users or customers, (b) The arrangement of collection of marketing information, (c) The actual selection and recruitment process, (d) The paper flow and conversion of data into information usable by the judge in a court of law, etc. Can all be put under the banner of production and operations management? ‘The conversion’ here is subtle, unlike manufacturing which is obvious. While in case (a) and (b) it is the conversion of ‘place’ and ‘possession’ characteristic of product, In (c) and (d) it is the conversion of the ‘state’ and characteristics. And using
In order to succeed in any business we have to be aware of operations management. It is considered as the most important part of the company; it is the part which is responsible for producing goods and providing services. After all, operating
Operations management refers to the administration of business practices to create the highest level of efficiency possible within an organization. Operations management is concerned with converting materials and labor into goods and services as possible to maximize the profit of an organization and also to meet customer requirements.
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.
According to Investopedia ULC (2012), " Operations management is concerned with converting materials and labor into goods and services as efficiently as
Operations Management focuses on the design and management of products, processes, services and supply chains (Diemond, 2014). It considers the acquisition, development, and utilization of resources that firms need to deliver the goods and services their clients want (Diemond 2014). Operations Management consists of many topics which are applied on a daily basis at the company I work for. Some of the topics include process control, lean manufacturing, six sigma, and supply chain management. It is the process that controls how inputs (raw materials, labor, and energy) get converted into outputs (finished goods or services).
Operations management refers to the activities involved in the actual production of goods and services: this is the part of an organisation that has to ‘get the job done’ (Business Organisation and Management for QLD) Operations management involves global sourcing in which a business seeks to find the most cost efficient location for manufacturing a product, even if the location is a foreign country; in this case Chile. For instance, if manufacturing and delivery costs are lower in Chile due to
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.
Production and operations management will be responsible for improving the production process. This department will also maintain communications between all departments to ensure the goals are meet. Communication will be essential to coordinate activities to achieve the goal of 100% growth. All orders will be shipped and filled in a timely manner while keeping cost low.
Operations Management Process is the central arteries within the organization because it produces the planning process for goods and services, which are its reason for existent. Operations management is linked to all organizations as every organization is producing either a product or a service. However, it cannot be said to be the most important function since there are other functional areas and boundaries within an organization. In today's fast changing world, organizations have to have a tendency towards being efficient, effective and innovative to the changing environment to succeed. Operations Management has to use metrics in order for them to accomplish their task and be successful with
The process which combines and transforms various resources used in the production/operations subsystem of the organization into value added product/services in a controlled manner as per the policies of the organization, is the definition of Production/operations management. Consequently, it is that part of an organization, this part is involved in the transformation of a range of inputs, like men, material, machines, information and capital, into the required (products/services), with the requisite quality level. The group of correlated management activities, that are engaged in producing particular products, is called as production management. Using the same concept but extended to services management, then the corresponding set of management activities is named as operations management. It’s could also be defined as all those business functions that perform the doings of planning, organizing, leading and controlling the resources needed to produce an organization’s goods and services, in order to generate value. It includes managing people, equipment, technology, information and many others resources. All parts of the organization are operations.
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.
In this article we are going to analyse key areas of ‘Operations Management’, considering a British coffeehouse company: Costa Coffee. We will study its specific operations management strategic frameworks such as design of goods and services, location strategy, management quality, process and capacity design, layout strategy, inventory management, supply chain management and job design and evaluate its effect on both company’s success and productivity.
Low-cost, time-efficient manufacturing of goods is a key feature of a successful production company in today’s competitive global economy. Operations management, often abbreviated in the business world as OM, is defined as “...the set of activities that creates value in the form of goods and services by transforming inputs into outputs (Heizer and Render, p. 4).” Every day, factories take in raw materials and use the labor hours and skills of their employees to transform those same materials into a variety of consumer products,
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.
Operational management processes in a firm involves overseeing, formulating and reformulation of the operations of a business. The processes are meant to ensure efficiency in administering resources whilst ensuring there is effective management of client’s specifications and or directions. This is achieved by adding value to the firm’s processes. Such achievements are experienced when a firm embarks in directing its physical and or technical functions towards enhancing its development, production and manufacturing. These should be pre-determined and controlled by market opportunities if a company is to reach its ultimate production levels. Their realisation adds up to ensuring the future of a firm, offering operational