Operations Management And Its Significance

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 refers to all levels of an organisation and how best to efficiently convene, fund, maintain and maximise its services and/or operations, both internal and external. The core goal/objective of operations management it to maximise outputs while reducing and minimising the inputs required to achieve the desired results.

Operations management is an area of management concerned with overseeing, designing, and controlling the process of production and redesigning business operations in the production of goods or services. The main influences on operation management include;

Consider a firm with a daily demand of 100 units, a production rate per day of 500 units, a setup cost of $200, and an annual holding cost per unit of $10. Suppose that the firm operates 300 days per year. How many units of inventory must their storage area be able to hold?

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 (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

“Management is efficiency in climbing the ladder of success”, Stephen R Covey once said. Operations management is in charge of customers’ needs and satisfaction. Its aim is to live up to its existence. The reason of its existence is to succeed in purchases, products quality, quality control, stockpiling and logistics. All this accomplished, the results are bound to be remarkable.

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.

Brown, Bessant, and Lamming (2013) indicate that “Operations management is concerned with those activities that enable an organization to transform a range of basic inputs into outputs for the customer” (p. 4). Operations management is not about limited functions within a company, but rather, it is about expanding its activities in numerous other areas and sectors (e.g. company-wide) in order to meet the needs of the company, customers, shareholders and stakeholders.

Operations management indicates to the administration of business practices to make the most elevated amount of productivity conceivable inside an association. Operations management is concerned with changing over materials and labour into produce and services as productively as possible to amplify the profit of an organisation. Operations management groups plan the technique for change of inputs (materials, work, exclusive data, etc.) into outputs (merchandise, administrations, value added items, and so on.) that is most advantageous to the organisation. Operations management groups attempt to equally adjust costs with revenue to accomplish the most astounding net operating profit possible. Operations management is essential for the efficient functionality and provision of health services. Because the health care sector is currently undergoing a considerable amount of reform, the jobs of those who manage health care operations are changing as well. One of the first areas of focus for operations managers is controlling costs. The current health care system overuses expensive, technological and emergency-based treatment. High costs from care that remains uncompensated due to patients being uninsured. A prevalence of services in expensive settings creates a burden on taxpayers, health insurance holders and health care institutions themselves. The goal for operations managers is to help strike a balance between necessary high-tech treatment and community

Operations Management has evolved over many years and is now considered a critical function in any business, as supported by J.R Meredith, “operations is critical to success in today’s economy” ( P35, Meredith 1992). Businesses need to have faster production, cheaper prices, better quality products and fast delivery to be competitive. How an operations manager manages the production of goods or services effects how competitive the offering and how successful the business will then go on to be. In this assignment I am going to use Nestle and Heathrow airport as examples

Operations Management is concerned with the managing of resources and activities that produce and deliver goods and services

The purpose of this assignment is to discuss and evaluate various key concepts of operations management and how each, when implemented within an organisation, can be beneficial and contribute to the improvement of its operational efficiency. (Hill, A. and Hill, T. 2011) describe operations management as being core to what organisations do, it is the process of transforming inputs which include information, people and materials into outputs such as services or products. (Slack, N, et al. 2013) states that every organisation has to have an operations function because every organisation creates in some form a service and/or a product. This in turn must mean that every organisation, in order to increase its profitability must strive towards improving the efficiency of its operations function. The key concepts that will be explored throughout this assignment are; Just in Time (JIT), Inventory Management and Supply Chain Management.

Operations is the key business function concerned with the transformation of inputs into outputs. If managed effectively, operations management adds value to the business by increasing productivity, reducing cost and improving quality. Effectively,

The world’s leading economies are ostensibly heading towards a recession with plummeting stock markets and soaring crude oil prices as consumers are beginning to feel the pinch of the credit crunch. According to analysts, the financial slumps of the past nine months seem to be unmatched since the Great Depression (Elliot, 2008). Unstable and unpredictable market turmoil from various sectors of industries with particular reference to the UK has seen major companies battling the slowdown in consumer spending due to the ongoing effects of the credit crunch which threatens job security (Harding & Elliot 2008).