Category: Operations Management

How to Valuable the concept of operation management

It’s here to understand the concept of operation management. It is involved with managing inputs thru transformation tactics to supply outputs eg: people, materials, and technology. Operations management worries about managing the sources that without delay produce the organization’s carrier or product. It is an essential phase of any organization. Operation management concept is very necessary for commercial enterprise operations because it varieties the coronary heart of the agency using controlling the machine of operation. Also, it offers the design, operation, and enhancement of structures that create and supply a firm’s principal merchandise and services.

It’s Here are the articles to explain, the Definition, Importance, Objectives, Principles, and Concept of operation management!

Operation Management is very important for managing large firms and running them successfully. Operation management is mainly related to the production of goods and services in an organization. The main purpose of operations management is to run business operations successfully, smoothly, and effectively by using the minimum resources and meeting customer expectations. Thus we can say that operations management is the process of converting minimum input like raw materials, and labor to produce maximum output like products, goods, and services. Operations Management is a very crucial factor to increase a company’s profit. Operations management is not only responsible for producing goods but also takes control of the distribution of services. Operation management is just not related to organizations it can see in our daily activities of life also.

Definition of operation management

According to Collins English Dictionary (1986), an operation define as “a process, method or series of acts, especially of practical nature”.

According to Galloway (1993) “operations management is concerned primarily with manufacturing or the change of state of physical goods”.

However, Galloway (1993) argues that “operations management is all about effective and efficient management of any operation irrespective of whether a physical good is involved or not”.

According to Kumar & Suresh (2009)

“Operation is that part of an organization, which is concerned with the transformation of a range of inputs into the required output (services) having the requisite quality level. Management is the process, which combines and transforms various resources used in the operations subsystem of the organization into value-added services in a controlled manner as per the policies of the organization. The set of interrelated management activities, which are involved in manufacturing certain products, is called production management. If the same concept is extended to services management, then the corresponding set of management activities is called operations management”.

In modern days, the concept of operations management sees in a completely different way. It seems as a set of activities that carefully plan, organize, lead, and control the organization’s operation. This shows the importance of operations management, the effective handling of the operations can prove very effective and profitable on the other hand failing to handle it properly could spell disaster for the company.

Significance and Importance of operations management:

The common belief amongst the people was to believe that operations management was important only in the manufacturing industry. The belief stood supported by the fact that the manufacturing industry had to take care of more number of processes and operations starting from obtaining the raw materials till the goods are sold and also in many cases after sales assistance was also considered hence creating the belief that the concept of operation management is important to the manufacturing industry.

In the case of the service industry, they have various amounts of processes involved starting from understanding the customer needs to getting feedback on the service hence at some point the service industry tells the manufacturing industry what they want and hence manages operations within the service industry is as important as managing the operations within the manufacturing industry. Whenever a company is offering a product or a service then that company has to make sure that the customers’ needs and demands are met at all times. This is a very important process and hence the marketing team plays a vital role in understanding what customers want and how to fulfill it.

The marketing team collects details from the customers and uses them as input for the design of products and services. So any operations management involves similar management tasks irrespective of what industry or business one operates. It involves Planning, Staffing, Controlling, Directing, Motivating, and Organising. Irrespective of business, operations management ranges across the organization as part of strategic and tactical operations.

To understand the importance of operations management IKEA takes as an example.

IKEA is a Swedish company that sells ready-to-assemble furniture, appliances, and home accessories. With a net income of 3.202 Euros in the year 2012, IKEA is one of the biggest businesses in the world. IKEA gets the products and furniture designed in Sweden however the manufacturing exists mostly in developing countries to keep the costs down. IKEA has suppliers from almost 50 countries. The biggest of the entire supplier for IKEA in China.

The case of IKEA is perfect to explain why the concept of operation management is important to all types of business, at the production or manufacturing section the company aims to reduce wastages, increase productivity, and time and resources management to make sure that the production cost is low and at the stores, the company aims to make sure that the warehouse is utilized properly, customers have explained the details and finally, the product is delivered without issues so that the shifting cost is low. Also, the stores have to take care of marketing and sales which involves their process. So this indicates that there will always be a set of operations irrespective of what field a business is in and at the end of the day successful businesses are those which manage their operations effectively and efficiently.

Purposes and Objectives of Operations Management:

Operations management has two primary objectives that need to achieve in many ways. It can say that both these objectives interrelate. The objectives are customer service and resource utilization. Customer service is the main objective of any company because at the end of the day irrespective of all the concept, strategy, marketing, and operation management. If the customer is not happy with the product or the service then the purpose of the entire enterprise falls.

So the operations management makes sure that all the customers’ needs and demands are met and to do that the company also has to make sure that it makes use of the resources effectively. If the resources do not use carefully then there are chances that the production cost increasing. Hence the overall profit margin will reduce and the enterprise objective has failed. So both objectives must meet in a complementary way so that the company benefits from them.

The objectives of IKEA are to make sure that the quality manages at all times and yet make sure that the operations exist effectively to save resources so that the company can benefit from it.

All operations managers manage processes:

The business dictionary defines a process as a “Sequence of interdependent and linked procedures which, at every stage consume one or more resources to convert inputs into outputs”.

According to Kumar & Suresh (2009)

“Strategic planning is the process of thinking through the current mission of the organization and the current environmental conditions facing it, then setting forth a guide for tomorrow’s decisions and results. Strategic planning is built on fundamental concepts: that current decision is based on future conditions and results”.

So from this, one can understand that the strategic decision of the company is all consider. As the process and strategic decisions are all made by the managers. It can say that all operations managers manage processes.

Principles of Operations Management:

The ten principles of managing by the process are:

Designate a process champion:

The manager is the best person because he has knowledge about all the processes and will be capable of handling those processes effectively.

Know the process:

Not just the manager but every employee within the operations must know the details regarding the processes.

Understand the linkages:

Every process will interconnect and hence it is important to understand the linkages between the processes.

Work on the trade-offs:

If the process is standing created from a cross-functional background it is useful to discuss functional versus process trade-offs. This will allow you to make clearer decisions about what is the best balance.

Teach others about the process:

Teach others who may need to supply inputs or receive outputs about the process. Moving to management by the business process is a learning opportunity for your organization. Process owners and teams should expect to have responsibility for spreading their learning. Some organizations would see this as part of the general communications process. Which facilitates understanding and allows issues to raise and answer from any part of the organization.

Train within the process:

Cross-functional customer-facing processes require new roles, tasks, skills, and expertise, often organized around teams. There are several things to consider. Training and development of new skills for individuals and of the team will bring with it a change in the culture of your organization.

Measure the process:

Measure for control, improvement, and benchmarking, using a range of financial and non-financial measures. Measurement is important for managing the interfaces between sub-processes and also between processes at the same level.

Manage careers:

Careers need management in the new process-oriented, possibly flatter organization. Align expectations and aspirations with a different kind of progression emphasizing cross-skill training and the importance of gaining wider business experience both within the process and in other processes.

Build specialist expertise:

In the context of the new organization, take account of any weakening in this role where the traditional functions in the organization make weaker. The process teams will probably need a mix of specialist skills as well as more general skills.

Improve the process:

This must be done continuously. The world will not stand still; nor should any members of the team.

The operations manager can make use of the value chain analysis to analyze the process that goes on within the company. It can say that all the operations that exist within the value chain can consider processes. The value chain is one of the most important tools to understand how all the processes are related to each other and how variations in any process will lead to a change in the overall profit margin.

In the value chain, we can see that there are primary activities, support activities and supply chain management, and firm infrastructure. Within each of these activities lie the very essential processes. These processes manage by people and the efficiency of these processes decides the overall outcome. So all the processes are standing taken care of by the operations managers. Hence it is evident that all operations managers manage processes.

All operations managers have a similar set of responsibilities:

Operations managers perform operations and look after the processes based on the input from the overall objectives and strategic vision of the organization. No process or operation will be done without having complete knowledge regarding its importance of it. There are two sets of responsibilities that every operation manager must look into.

First, the operations manager has to make sure that the processes and the operations that. He is taking care of performing to commendable levels. Secondly, at the end of these processes and activities, it should create a path for the following processes and activities. If any one of the two fails to be performed. Then it can say that the operations manager has not fulfilled his responsibility and that could be fatal.

Every operations manager needs to make hundreds of decisions every minute. Hence they would devise a general rule to follow in the changing circumstances. These would further lead to the development of the operations strategy. Which would fall in line and derive the basics from the overall strategy of the organization.

Other things

Every operations manager will have the same set of beliefs at the end of the day. The concept of operation management, all draws inputs from the corporate strategy to perform their activities and processes. To decide how every process and activity needs to perform, planning should make as to how the resources distribute and manage. By doing so the process because easier and any chances of errors are nullified. If it considers that the operation manager at IKEA suddenly quits the job. In such a scenario a new person who comes to take up that role does not have to decide how the processes handle and manage.

The manager can simply look into the aims and strategic objectives of the company and how the processes have developed. Their strategy is from them and based on that. They can pick it up from where the other manager had left it. This indicates that not just the inter-processes are similar every process can follow a similar guideline. Which is easy to establish because of the common usage by all the processes.

Conclusion:

The belief that the people had was that strategic planning by the top management was the only important role, and the role of the operations managers was neglected. As the business environment became more and more challenging, companies started to understand the importance of operations managers. Operations managers play a vital role in managing different processes, taking the challenges, making decisions, and guiding the other process to perform similarly.

An operation manager needs to take decisions at a fast rate and hence devise a strategy. As how these decisions take help the performance of the operations managers and in turn. It helps the processes to decide at a faster rate and that would lead to efficiency of process and efficiency in the management of the resources. Resource management is always an important criterion and in many cases, the efficiency at which the resources manage will lead to the success of the company. All these activities are very important irrespective of what business one operates or within what industry that business operates. The operation management concept is an important aspect of successful business and will continue to be so in the future as well.

Reference;

Retrieved from: https://www.ukessays.com/essays/business/importance-of-operations-management.php?vref=1
Image Source from Photo by Annie Spratt on Unsplash

How to Valuable the concept of operation management?

September 18, 2022
Sustainability Concept in Operations and Project Management
What is the Concept of Sustainability Management? Meaning and Definition; Sustainability inside operations control stands set preserving herbal assets for destiny generations e.g. Minimization of carbon footprint. A completely sustainable operation has a zero impact or high-quality effect on the ecological environment. Organizations in recent many years have started to recall how their operations affect the surroundings; and, destiny generations and are beginning to renowned new practices of doing enterprise in a way that balances monetary and environmental desires for higher sustainability management.

Here is the article to explain, How to Concept of Sustainability in Operations and Project Management?

The field of operations control has a vital function to play inside the lengthy-term sustainability of our economy. Sustainability is a commercial enterprise’s ethical responsibility regarding the businesses’ responsibilities or duties toward the broader environment, network, or society as an entire. Being socially irresponsible can create a bad picture via the negative public picture and media coverage it may reason e.G. BP Deep Water Horizon oil spill.

Practices for higher Sustainability;
- Reduction inside the production of poisonous substances, carbon emissions, and different greenhouse gasses (GHGs) from the organizations’ sports.
- Reduced reliance on fossil fuels along with petroleum and different non-renewable energy.
- Use of natural, renewable, and biodegradable materials e.g. reabsorbed into the surroundings.
- Redesign packaging and products to use much less cloth or energy.
- Reducing electricity and pollutants from transportation, logistics, and manufacturing.
The company’s “environmental footprint” or environmental effect exists decided by way of the amount of depleted raw substances and non-renewable assets it consumes to make its merchandise in addition to the amount of waste and emissions it generates in this process. The existence cycle of a product ought to take into consideration, not simply the raw materials it consumes in its production but all different manufacturing procedures, distribution, and transportation caused by the life of the product, proper via to its very last disposal. It is important to consider sustainability no longer just in the employer but at some stage in its whole delivery chain.

Benefits of Sustainable practices;
- Competitive performance may improve via the enterprise by differentiating itself relative to the opposition based totally on sustainability. M&S launched “Plan A” in January 2007, there may be no “Plan B”, starting commitments with the last goal of becoming the sector’s most sustainable principal retailer. This in itself drew big publicity to the brand and recognition of M&S.
- Socially responsible (‘inexperienced’) clients often are willing to pay top rate prices; which may be a big boost to income sales and income.
- Green traders can bolster up the percentage charge of greater sustainable businesses e.G. Recycling or renewable energy organizations.
- Sustainable business practices can lessen cost and play a treasured function when assisting ‘lean production’ or waste removal as a precept.
This evaluation discusses the journal Sustainable Project Life Cycle Management:

They want to combine life cycles in the manufacturing area authored by using Labuschagne and Brent. The subject matter of this paper is that incorporating the modern task control methodologies; with the principles of sustainable improvement calls for complete knowledge and integration of various existence cycles. This magazine affords a terrific advent to existence cycle management; however, the authors do not take a holistic angle on the aspects of sustainability in undertaking management.

Essay part 01;

At the outset of the paper, the authors are aware that the social, economic, and environmental impacts of a challenge lengthy after its completion have required increasing interest; the mission existence cycle management ideas, therefore, require revision. However, motives for the consideration of life cycles when aligning sustainability with task control have not been distinct. According to Azapagic, people may additionally accidentally worsen the impacts when trying to alleviate them. Therefore, protection of the surroundings with outgrowing burdens can handiest exist assured; with the aid of adopting a systems method based on lifestyles cycle thinking; which takes the complete life cycle of hobby under consideration.

Labuschagne and Brent have targeted defining diverse lifestyles cycles, yet the descriptions of the proposed effect evaluation signs at the 3 important sustainability dimensions are best in short stated which causes the concept rather vague. In, Brent and Visser verified an environmental overall performance useful resource effect indicator (environmental performance resource impact indicator, EPRII) calculation system by using introducing the life cycle impact assessment (LCIA) framework for evaluating burdens on the operational level. The method evaluated affects four one-of-a-kind useful resource groups; which include water, air, land, and mined abiotic assets based totally on 3 manner parameters comprising water and strength usage, and waste produced.

Essay part 02;

Research regarding the social sustainability measurement has additionally existed completed eventually. All the social criteria and its sub-standards have existed tested concerning venture management and enterprise; but, unique impacts existed discovered to be extra massive in certain appraised asset or technology existence cycle levels. The EPRII approach stood used as a foundation to calculate the social impact indicators; but, results stood regarded to be unreliable and the method existed hence concluded to be now not relevant for choice-making purposes in the meantime because of the lack of social mission and footprint facts.

Despite its illness, this paper is a nicely-established piece of labor that makes use of a large variety of diagrams and tables. Koedinger defined that diagrammatic illustration outperforms sentential expression due to its use of region to group information; which enables seeking and avoids the want for symbolic labels and also encourages perceptual inferences. This consequently enables readers to have a better know-how of the concept.

In conclusion;

Although this journal article does now not provide a holistic overview of sustainability in challenge control in management; its precise descriptions of various lifestyles cycles and their interactions in projects have furnished an explicit concept of mission life cycle management. Moreover, a large amount of literature assessment has stood finished in this newsletter; it, consequently, merits to be extensively studied.

Sustainability Concept in Operations and Project Management; Image by Elf-Moondance from Pixabay.
March 25, 2022
What is Flexibility in the Workplace? Meaning and Definition
What is Flexibility in the Workplace? They suggest having the ability to quickly adapt to new circumstances as they arise. a flexible worker will modify; their plans to navigate or overcome unlooked-for obstacles. AN leader will encourage this fashion of thinking by giving staff the liberty to decide on how they work—including their schedules and work locations, things that may support by flexible offices.

Here is the article to explain, How to define Meaning and Definition of Flexibility in the Workplace?

This is particularly vital in fast-moving and dynamic industries; wherever the power to reply to unpredictable events and dynamic expectations could be a valuable quality for employers and staff alike. If the events of the past year have educated the U.S.A.; Something concerning however and wherever we tend to work; it’s that fostering a capability to take care of sudden things has advantages on all told sides of our lives—the skilled and private.

What is a flexible firm?

The idea of the “flexible firm” changed into proposed via John Atkinson, he diagnosed that agencies would require greater flexibility; if they are to adapt rapidly and meet the ever-evolving market and aggressive demanding situations they face. Flexibility in the Workplace, Greater workforce flexibility can require due to uncertain marketplace conditions or seasonal modifications in demand; this enables to gain more cost-effectiveness for the enterprise.

The “flexible firm” model suggests that we can design a flexible group of workers’ preparations to proactively meet commercial enterprise wishes. For instance, greater numerical flexibility can complete with the aid of the use of peripheral workers (part-time or brief body of workers) or external hard work (freelancers, sub-contractors, or self-hired). Core employees (complete-time everlasting employees) in the workplace aren’t as easy to lessen in number whilst commercial enterprise contraction required however can offer greater user flexibility.

Achieving more flexibility;
- Increased use of outsourcing will in step with Handy try to shrink the businesses‘ inner core’ leaf (downsize) and extend its ‘contractual fringe’ leaf as a basis for improving each numerical and financial flexibility in the workplace.
- Short-time period body of workers’ contracts can obtain numerical flexibility.
- The use of overall performance-related pay structures can attain a lower composite of fixed workforce wages and salaries and reap greater monetary flexibility.
- In the workplace Job growth, multi-skilling, and empowerment of the agencies’ complete-time and part-time workforce can reap extra purposeful flexibility.
Types of employee or staff flexibility;

The following worker or team of workers (employee or staff) flexibility types below are;

Functional flexibility;

It (project flexibility or ‘multi-professional’ employees) execute by breaking down traditional occupational boundaries and specialization. Manufacturing people as an example can require taking on different indirect responsibilities inclusive of satisfactory control, cleaning of the workplace, habitual device maintenance, and mastering new manufacturing strategies and capabilities. This permits the workforce (or their abilities) to use greater flexibility via existing moves around the corporation to store price or cowl absenteeism. Functional flexibility may complete through staff secondments, training, and process rotation to analyze new capabilities.

Financial flexibility;

It performs by way of using overall performance-related pay structures e.g. Workforce paid in line with the unit of product they make or promote; this facilitates reaping higher cash-float management when production is slack. Financial flexibility converts personnel charges from constant to variable, consequently, supporting higher coins-flow management.

Numerical flexibility;

They permit a company to swiftly adjust the variety of staff it has to exchange ranges of purchaser call for. This may achieve by lowering the permanent full-time body of workers and recruiting instead greater subcontractors, temps, or part-time employees.

Temporal flexibility;

They can carry out using various times of day or days in the week a worker stands inclined to work e.g. Day without work in lieu after running longer shifts to accommodate a surge in call for, or overlaying for different staff shifts at a moment’s note. It can execute with the aid of workforce contract phrases or cultural standards by using personnel.

Location flexibility

It is to do with the “geographical mobility” of the corporations’ workforce together with the capability to transport personnel among offices, branches, or outlets within other components of the U.S.A. Or even across the world. It can finish through a group of workers’ settlement terms or culturally prevalent using a body of workers.

How to be flexible in the place of job?

What does it imply to be bendy? It can look like an intrinsic persona trait from the out of doors; however, in truth, being bendy is all approximate preparation and accepting that matters will alternate. While it’s not possible to count on the unexpected; you could nevertheless count on new developments before they take place and have a plan of action equipped to fulfill the event. Some non-public traits may be visible coming over the horizon, inclusive of a brand new toddler or a flow to a new residence. The effect of those activities can be idea approximately long earlier than they take place.

But over a long time, surprises turn out to be inevitable: a challenge might all of sudden fall to pieces after months of tough paintings, or you might lose your biggest customer. But by way of accepting the ones unpredictable things to appear; you’ll at least find yourself in the correct attitude to react to them. A sudden alternate can be traumatic, however, that pressure exists exacerbated by using the experience that you’ve lost manipulate. By bracing yourself for unanticipated effects; you could higher hold manipulate over the situation and higher role yourself to cope with the fallout.

Ways to grow flexibility inside the place of work;

There are many methods to comprise extra flexibility into your organization’s tradition. It may not be realistic to transition to a bendy timetable or to cast off each person’s assigned desks; however, you can take those small steps closer to a less rigid, happier, and greater efficient workplace.

Start a dialogue about flexible working;

Figure out what kind of bendy arrangements your personnel needs and be realistic approximately what you may offer. Large offices with interdependent departments may not be capable of accommodating massive modifications in working hours; as an example, however, they may be capable of permitting far-off running, more paid day off, or a four-day workweek.

Be clear on your commercial enterprise targets;

A bendy place of work stands constructed around trusting teams to approach targets in their manner; and on their schedule, so goals and cut-off dates should communicate in reality and understanding through all.

Encourage creativity;

Create a supportive surrounding in which employees are unafraid to share new thoughts. A place of work that promotes creativity and lateral thinking is better ready to navigate complicated problems after they stand up.

Reconfigure the office format;

Flexibility isn’t simply an attitude—it extends to the physical layout of the workspace. Provide groups with exclusive regions of the office to paintings, including status desks in quiet corners and common areas in which human beings can come together to collaborate.

What is Flexibility in the Workplace? Meaning and Definition
March 24, 2022
What is Capacity Planning? Meaning and Definition
The capacity planning that means is the most limited to the degree of a product or service a corporation will manufacture inside a given timescale and certain by its current constraints like existing technology, resources, and potency of business processes; the flexibility of AN operation to perform and manufacture (capacity) is commonly quantified by mistreatment productivity, efficiency, and utilization measures.

Here is the article to explain, How to define Capacity Planning?

What is the meaning of capacity planning? Organizations and groups ought to realize the correct resources at the correct time to deliver comes. These resources will be individuals, tools, or budgets.

Capacity planning is all regarding fulfilling this demand. Formally, you’ll outline capability coming up with as:

“Capacity planning is the method to work out and meet an organization’s resource capability wants”.

Having access to the correct resources at the correct time ensures on-time delivery with quality. On the opposite hand, not having access to resources might delay or derail your project fully.

Terminology for capacity;
- Overcapacity (spare capacity) means resources e.g. staff, machines, and instrumentality aren’t being totally used (‘idle’) and therefore the organization isn’t in operation at full capacity, there’s a low demand for the organization’s merchandise.
- Under capability (full capacity) means client demand is bigger than the utmost capacity the organization will build or sell e.g. full order book, client queuing, and waiting lists.
Forecasting demand will stand complicated and unreliable inside unsure environments nowadays therefore a balance has to be smitten between capacity out there and meeting client expectations and demand. If a corporation doesn’t manage its operations effectively it should either be moorage cash unnecessarily e.g. idle labor or holding giant inventory levels or not capable to provide merchandise or services flexibly enough to satisfy surges in client demand throughout ‘peak’ moments and so lose orders.

Market forecasting strategies for predicting demand statuses;
- Survey/sample of emptor intentions ideally suited to short and medium-term sales statement, the results will be fairly correct and realistic. A sample of shoppers may well ask would you get this product and in what quantity? This information will then calculated from the sample taken to form a ‘population’ forecast of probable demand.
- Composite of salesforce opinions wherever human judgment applied by staff inside the organization that encompasses a sensible understanding of shoppers, market demand, and certain growth levels.
- Expert opinions of trade consultants or consultants and “what they say”, however, this technique commonly hampered by an absence of experience out there.
- Past-sales analysis projections (trend and forecasting models) employ a mathematical study of past (historical) performance e.g. high low technique, statistic, multivariate analysis, or scatter graphs; the most important limitation of those strategies is that past performance might not be a decent indication of the long run.
Other statuses;
- Market take a look at strategies that may embrace shopper trials and testing of latest merchandise or product options for customers to present their direct and infrequently qualitative opinions and feedback to determine probably quality. Testing provides valuable help in determining future “potential” for client demand, providing the analysis isn’t imperfect or poorly designed.
- Queuing theory e.g. a mathematical study of the formation of awaiting lines or queues (electronic or physical), for once client ‘arrivals’ occur indiscriminately intervals. the idea will manufacture many performance measures e.g. average waiting times, or the expected variety of shoppers at sure times.
- Queuing theory is usually thought-about a branch of operations management as a result of the results will be wont to set up for resources required to produce a product or service. Examples embrace code intelligent agents to watch center phone activity or direct (or CCTV) watching of physical client queues during a grocery store; typically viewed as too mathematically restrictive to be ready to model all real-world things precisely thereon.
Queuing theory permits a series of performance measures to monitored.
- Performance measures will calculate to assist improve operations. Ratios like average waiting times will monitor for the impact on client satisfaction.
- The expected variety of shoppers will determined before simpler employees and resources come up with.
- Can be wont to answer variations in demand for merchandise or services e.g. selling promotion will facilitate ‘smooth’ peaks and troughs in demand.
- Internal benchmarking e.g. ratios of various sales retailers compared to spot wherever improvement in client outturn need.
Characteristics that affect capacity;
- Resources out there e.g. amount of labor and skills, the number of machines, and times out there. ‘Bottlenecks’ prohibit AN organization’s resource capability to provide. Flexibility from employees and different resources will facilitate attain faster lead times.
- Physical area e.g. most seating during an arena or edifice, or most production area to manufacture merchandise.
- Efficiency and waste e.g. time taken to convert inputs (resources) into the merchandise or service (output). The reduction of employees’ idle time (or different resources) and wastage levels from inputs are very important to maximize potency, increase outturn and cut back value.
- Lead time (responsiveness) e.g. high found out a time for production or long production cycles will build provide unresponsive (inelastic) to changes in client demand.
Why is capacity planning significant?

Creating plans for capacity utilization helps businesses optimize procedures. Also, it helps them perceive the budget needs for the feat, allocating, and managing resources. For project groups, not having the correct resources leads to either poor delivery quality or AN overworked team.

According to the worldwide Work Culture Report for 2020, over seventy-nine percent of workers expertise some reasonable burnout. Burnout severely affects your workers. Such workers are:
- 2.7 times as probably to go away their current leader
- 230 % less engaged
- 220 % less probably to market the business
- Now that you simply perceive why capability coming up with is very important, let’s investigate its varieties.
What are the types or kinds of capacity planning?

There are 3 styles of capacity modeling techniques relying on:
1. planning level,
2. capacity objectives,
3. and, was operated.
Based on the capacity planning status;
- Capacity coming up with at the organization level: during this method, the organization determines if it’s enough skillful individuals. It additionally helps decide if a hiring method has to initiated.
- Resource allocation at the project level: At the project level, a manager identifies; their resources inside the organization and requests allocation for a project. Learn a lot regarding resource allocation here.
- Workload management at a private level: to stop burnout, you wish to watch your team members singly. This ensures team members are neither swamped nor underworked.
Based on the capacity objective;
1. Short-term capacity: supported client demand or seasonality, groups might bulk up or cut back the number of individuals; short capability plans will be for every day, week, month, or generally even 1 / 4.
2. Medium-term capacity: usually used for comes that vary from a year to a few years.
3. Long-term capacity: betting on the kind of trade, the amount for this type of coming up with varies; typically consultants investigate trade trends and forecast the requirement for capability; capacity then planned supported by the forecasts.
What is Capacity Planning? Meaning and Definition
March 23, 2022
What is Process Mapping Meaning and Advantages?
Process Mapping Meaning is a workflow diagram to carry forth clearer know-how of a process or collection of similar operations. It perspectives the machine from the affected person’s point of view following their expedition across organizational limitations. Also, It enables the crew to understand how complicated and perplexing tactics appear to the patient. It is corporation precise. It is diagnostic and applied as a basis for redesign, actively involving the frontline crew within the process.

Here is the article to explain, How to define the Process Mapping Meaning and Advantages?

Process Mapping or layout meaning is the activity of figuring out workflow, system, and different aid desires, for a method (activity) to paintings correctly. Good technique layout generally makes use of flowcharting as a tool for a technique to advance; it is generally an excellent idea to first illustrate the system to apprehend it, organization communicate this to others “visually”, after which paintings on its improvement.

Process mapping is the use of glide charts or diagrams e.G. Arrows, symbols, and shapes to facilitate the expertise of a manner. It is a tool that assists with the correct process layout. Each image in a procedure map uses to demonstrate the flow of a procedure from beginning to complete. Many other flowchart symbols also can use, however extra importantly, going with the flow charts will help to communicate know-how of a manner.
- Oval shapes or elongated circles represent the start or termination of a technique.
- Rectangles characterize procedures, instructions, or moves.
- Diamonds display decisions that need to made.
Advantages or Benefits or Pros of Process Mapping or layout;

The following Process Mapping or layout Advantages or Benefits below are;
- Management knowledge of techniques is higher while mapping use.
- Supports other tools which include benchmarking, business technique re-engineering, and lean control (or waste removal) to reap dramatic upgrades in purchaser pride or price reduction.
- Worker information of where their roles and duties are related inside a system and how this integrates with different tactics.
- Diagrammatically can highlight manner inefficiencies or loss of fee and assist consciousness on where improvement need.
- Can use for dependent “walk through” testing to verify the common sense of a system.
- Can use to set up prototype designs for brand spanking new methods.
- Step-by means of-step glide without existing overwhelmed with the aid of the larger picture.
Mapping methods can be complex, lengthy-winded, and awkward, and getting anybody to agree with what a brand new system “ought to be like” might also take many redrafts. Microsoft Visio is an instance of a ready-to-use software package deal for procedure mapping; which can use to reduce work effort for professionally designing system maps.

Work-Study;

Work-Study manner is the systematic examination of methods or techniques that perform sports, to improve the green and effective use of resources that guide workflow. Work-look at can also assist layout standards of overall performance to monitor pastime higher. Work-examine should encompass inspecting a process to make it extra efficient or time-motion research undertaken to decide trendy performance for a way lengthy a task or one-of-a-kind elements of a technique have to take. Process mapping meaning is a beneficial tool to help paintings research and so is BPR when looking to re-engineer work tactics for higher performance.

What is Process Mapping Meaning and Advantages?
March 23, 2022
2 Quality Culture Elements in Management Essay
2 types Elements of Quality Culture in Management Essay; Indeed, quality culture starts with top management. There needs to be top management leadership to drive this culture of quality across the organization. For this to happen, business leaders and managers must commit to setting up quality control programs, strategic planning for quality, and providing resources for quality. In addition, the top management leadership role is also a distinguishing element of a quality culture. Adopting a democratic leadership style where workers do not punish for errors; and, failures and that continuous learning is what prevails in the organization.

Here is the article to explain, What are the Elements of Quality Culture in Management Essay?

Management attitudes should be towards treating employees as members and removing barriers of superiors or subordinates. This suggests to everyone that the work of all members of the company is important and adds value to the final outputs. Members of the organization should focus on the purpose for which they are all here; To get better and better at creating that mutually beneficial relationship between them and their customers. Therefore, the authority of the top management is to support the mutual interests of its team openly and conscientiously. The 2 main and 7 sub key quality culture elements below are;

A. Employee focus;
1. Understanding employee.
2. Employee empowerment, and.
3. Involvement and participation of the employee.
The following topic explains each below are;

Understanding employee;

Employee, being the most prominent factor of production, needs to give consistent attention to management. Their current skills and competencies (both technical and interpersonal) need to assess continuously through performance management programs; the SERVE model for service competencies among others, and training should give as and when needed. Alternatively, managers must be attentive to the needs of employees with proper rewards and incentives programs being conducted. For sustaining a quality culture, it is also vital to consider the non-work aspect of employees; such as marital or family problems, financial or other social problems.

Employee empowerment;

Management cannot on its make quality a driving force of the organization. Employees are those who involve in the processing and marketing of the company’s product. As such, employees should empower to make a timely, accurate, and valuable decision with regards to improving the quality of the company’s product or service. Moreover, in some cases, empowerment may also be in circumstances where the employee has to delegate some powers; and authority to his/her colleagues with the sole aim of improving the quality of service. However, effective empowerment involves appropriate training given to employees, management monitoring of the decision, and review and feedback are given to management.

Involvement and participation of the employee;

Employee involvement programs (EIPs) can take a variety of forms including job participation; consisting of permanent programs in which employees take a formal, direct role in decisions relating to quality issues; consultative participation with top management to improve their production lines, including long-term interventions like quality circles, employee suggestion schemes, brainstorming sessions, in which employees’ opinions are sought as managers engage in decision making regarding quality issues over the long term. On the other hand, employee participation will be at the board; where discussions hold between managers and/or employees over issues that require employees and/or management ideas and suggestions.

B. Customer focus;
1. Continuous improvement and Innovation.
2. Partnering with suppliers.
3. Performance measures.
4. Communication, and.
5. Team building.
The following topic explains each below are;

The impetus for quality improvement begins with the customer. Customers draw to the products and services of a particular organization; because they feel their needs and expectations are met or exceeded by these products and services. The bottom line for the customer has always been whether he or she obtains the products and services desired. For this reason, a focus on customer needs and expectations recognize as the key to quality improvement by Demming, Juran, Crosby, and other pioneers of TQM. Therefore, customer-driven values would be first to adopt a user-based quality approach whereby the quality is based on what the customer wants since he/she has always reason. Furthermore, there should be a change in management/employee attitudes as well; the door should always be left open for maintenance and advice.

Continuous improvement and Innovation;

A quality culture requires organizations to embrace “continuous improvement and kaizen” throughout their processes. This approach assumes that employees are the best people to identify room for improvement since they see the processes in action all the time. A firm that uses this approach, therefore, has to have a culture that encourages; and rewards employees for their contribution to the process but to meet the highest standard possible at any time. In line with this continuous mechanism, management should allow room for innovation; and creativity, work alongside the research and development, and invest massively in the development and new products based on customer requirements.

Partnering with suppliers;

Suppliers are probably among the most important stakeholders for businesses in the quest for a sustainable quality culture. This is because the essence of quality starts with the inputs of production; which normally constitute a greater proportion of raw materials and components. The values that the organization needs to hold vis-a-vis its suppliers are not as stakeholders but as partners for the longer term. Clear emphasis should lay on the quality of raw materials. The organization could agree by having quality control officers at the warehouse of the supplier. In addition, quality is also about the delivery of inputs which requires the principle of “just-in-time” where raw materials and components arrive at the factory as and when needed therefore reducing the cost of storage but also keeping the materials at the standard required for production.

Performance measures;

Quality standards are imperatives if the quality is to be consistent in an organization. However, using quality standards as performance measures will give employees room for continuous improvement in their skills and competencies. The culture that needs to prevail in the organization is that performance of employees needs to assess with regards to quality standards and not based on the quantities of output produced.

Communication;

To have a dominant quality culture prevailing in the organization, open, honest communication is vital. Dishonest communication is the kind of communication that leads to misunderstandings which frequently create problems on the job. In an environment where open communication is a stated value; such dishonesty in how people interact with each other makes little sense; and therefore quality reaches in terms of conversations, discussion, and sharing of ideas. Another essential element of a quality culture is empathy; which is to do with proactively seeing the world from the perspective of others-other members of the company, customers, suppliers, the community. It is having a sense and appreciation of their problems, their abilities, and their behaviors. Finally, in connection with empathy, members of the organization need to have active listening skills by suspending judgments.

Team building;

Individual success depends on how everyone in the company works together, and the company’s success depends on all individuals doing their work well. This crucial element of quality culture encourages the development of teams and teamwork when collaboration is appropriate to execute work. In organizations with this value, people examine the tasks that need to be done. They then look at the interdependencies among people involved and organize teams around these tasks. The commitment and inclination to teamwork in a culture with this value will indeed naturally extend to suppliers and customers. Ultimately, the teambuilding exercise will help remove barriers and class differences among people and work towards implementing total quality across the organization. You may understand above all quality culture elements.

How to Determine a Culture of Quality?

A Culture of Quality reflects via the human beings and processes within the enterprise. When the group participants care about the best of work; they are doing each day and make informed choices to gain the best satisfactory requirements. What differentiates the best tradition is achieving first-class requirements to meet consumer expectations, not only for the sake of reaching regulatory compliance.

Some businesses frequently placed the printed variations of their satisfactory policy on the office partitions. But is it a realistic manner to imbibe a tradition of fine? Do their personnel care about first-rate? Can they relate to the exceptional coverage? Are their approaches nicely-aligned to satisfy pleasant objectives targeted in the policy? There is an extensive difference. And it displays in the consequences.

In the end, the objective is to supply a product this is beneficial for the users and creates a distinction in their lives. If your crew maintains that during thoughts and gives you satisfactory, safe, and dependable merchandise to the clients, your business enterprise may have a subculture of pleasant already. If not, it does no longer imply that your crew does now not care about the subculture. It is an issue of streamlining the methods such that a subculture of pleasant turns into herbal, and you can constantly discover improvement possibilities. Eventually, it’s going to improve your brand fee, making sure that you deliver the nice best always.

2 Quality Culture Elements in Management Essay; Image by Megan Rexazin from Pixabay.
December 11, 2021
Group Technology: Meaning, Definition, Advantages, and Limitations
What does mean Group Technology? Group technology or GT takes advantage of the similarities of parts and machines in a manufacturing system. In this paper, the classification and clustering approaches to group technology in manufacturing systems are discussed. The mathematical programming formulations for the clustering problem are presented. GT is the important technology among the others and it will play a major role in the factory of the future. So, what is the topic we are going to discuss; Group Technology: Meaning, Definition, Advantages, and Limitations.

Here are explained; What is the Group Technology? first Meaning, Definition, Advantages, and finally Limitations.

Meaning of Group technology: GT is a concept that is currently attracting a lot of attention from the manufacturing community. GT offers a number of ways to improve productivity in batch manufacturing. The essence of GT is to capitalize on similarities in recurring tasks. GT is, very simply, a philosophy to exploit similarities and achieve efficiencies grouping like problems.

Group technology is an approach to organizing manufacture which can be applied in any industry (machining, welding, foundry, press work, forging, plastic molding, etc.) where small-batch variety production is used.

Discuss of GT list;
- What is the Group Technology?
- Meaning of Group Technology.
- Definition of Group Technology.
- Advantages of Group Technology, and.
- Limitations of Group Technology.
Definition of Group technology:

The basic approach enables all aspects of manufacturing, from design, through estimating and planning, to production, to be rationalized. It forms the basis for the development of computer-aided procedures and flexible automation. Group technology is a manufacturing philosophy or principle whose basic concept is to identify and bring together related or similar parts and processes, to take advantage of the similarities which exist, during all stages of design and manufacture.

If parts can be classified into families, and machines arranged into groups, then the handling of parts during manufacture can be easily done by the robot. It must be understood that there exists a relationship between finished products and the parts from which they are made. While assemblies may bear little relation to each other, the sub-assemblies from which they are constructed will exhibit some like features. By exploiting the similarities which exist among such a population of parts, group technology sets out to reduce the time and cost of manufacture.

“Group technology is the realization that many problems are similar and that, by grouping similar problems, a single solution can be found to a set of problems, thus saving time and effort.”

Explain the Definition;

The main theme is thus to identify somehow from the large variety of parts those families which require similar manufacturing operations. Cells are created to manufacture defined types and size ranges of parts. Groups of machines, chosen for each family are situated together in a group layout, in such a way that parts flow from one machine to the next in the sequence of operation.

It is not necessary for every part to visit each machine, but the machines in a cell should ideally be capable of carrying out all the operations required in the family. It may be remembered that in a functional layout, all like machines are grouped at one place and thus a product has to move a lot of distance in a zig-zag manner. But in a cell layout, various machines are arranged so that product flows from one machine to the next in sequence.

History of Group Technology:

Prior to 1913, the era of Henry Ford and his Model T, all machining models were similar to our present job shop techniques with machines laid out usually in lines or blocks of similar machines. The work was loaded onto the machines usually by the manual progress control system. Ford introduced the assembly line and that, in turn, led to automated transfer machines. However, the majority of engineering do not produce items in the quantity that justify such methods and so the jobbing shop philosophy continued.

GT is mainly coordination of normal good engineering practices. It is impossible to say who first practiced GT. There are reports of it having been used in Germany in the 1930s. In an international Conference held in Stockholm in 1947, the basic groups were explained by C.B.Nanthorst. In Italy, M. Patrignany was an early exponent of this technology. However, little of this appears to have been in English. First published work was from the USSR by S.P.Mitrofanov in 1959 and thereafter subsequent books here published by F.S.Denyanyuk and E.K. Ivanov.

The first reported work on GT outside Russia was done by a French Forges et Ateliers de Construction Electriques de Jeurmont – and this was about in Machinery in 1962. Subsequently, several British companies conducted considerable work in this field. There have also been considerable studies done by various consultants in the Universities. The significant contribution by J.L.Burbidge in the 1960s led to GT as A total Manufacturing Philosophy.

Advantages of Group Technology:

According to Burbidge, the following are the advantages of introducing GT in manufacturing.
- Short throughput times because machines are closed together.
- Better quality because groups complete parts and the machines are closed together under one foreman.
- Lower material handling costs because machines are closed together under one foreman.
- Better accountability because of machines complete parts. The foreman can be made responsible for costs, quality, and completion by the due date.
- Training for promotion since GT provides a line of succession because a group is a mini-department.
- Automation GT is the first evolutionary step in automation.
- Reduced set up time since similar parts brought together on the same.
- Morale and job satisfaction since most workers prefer to work in groups.
- The output is improved due to improved resource utilisation.
- Work in progress and finished stock levels are reduced.
- Simplified estimating, accounting and work management.
- Improved plant replacement decisions, and.
- Improved job satisfaction, morale, and communication.
Studies were undertaken by N.L.Hyer indicates the following significant savings after implementing GT Snead prepared a summary matrix, listing the benefits listing benefits achieved for the various GT. What is the Definition of Production Management?

Group Technology: Meaning, Definition, Advantages, and Limitations. #Pixabay.

Limitations of Group Technology:

Group Technology is a great concept. But all good concepts do have their own limitations and need proper care in their applications for results to be realized in practice.

The Disadvantages of Group Technology or cellular manufacturing may be as follows.
- High Cost: The cost of implementation is generally high. This is because an outside consultant is often required since in-house expertise on GT is rarely available. It requires a long set up time and painful debugging.
- Not Suitable for large Variety of Products: May not be suitable for a factory with a very large variety of products.
- The entire production of the company cannot be put under the GT and hence GT will have to coexist with the conventional layouts.
- Not suits all Applications: There are too many GT codes in used and there is no one GT code that suits all applications.
- It is often difficult to conceive all the operations for a group of components being taken care of in the cell created for it.
- The range of product mix in a plant may be under constant change in which case the GT cells may need a constant revision which is impractical.
- The additional cost of implementation of this system.
- The rate of change in product range and mix.
- Difficulties with out-of-cell operations, and.
- Coexistence with non-cellular systems.
How to Uses of Group Technology in the Company for Production?

Survey of product and use of group technology:

Group technology technique can be conveniently followed using a classification system. In an assembly, a variety of parts exist. These varieties of parts can be-segregated in three broad areas, viz.
- Standard and proprietary parts (like nuts, bolts, screws, keys, washers, etc.)
- Similar parts (like shafts, gears, bearings, levers, etc.)
- Product specific parts (like gearbox, bed, saddle, etc.)
It may be noted that the group technology is not concerned with categories (i) and (iii) but relates to category (ii). The aim thus is to group the range of parts under the category (ii) in some way, for the purpose of manufacture. Several types of classification systems have been devised and one has to carefully consider the system based on his needs.

An organization with a wide range of products needs a complex detailed system but the same is not good for the one dealing with a limited range. Provision should always be made for future likely growth and classification system chose must keep this requirement in view.

Organizational suitability for Group Technology:

The suitability of a firm for the introduction of GT depends on several factors. The survey of Willey and Dale give a tentative description of a company profile likely to achieve. The greatest benefits from GT, some of these are:
- The company must be a relatively small organization with reasonably small machine tools, and manufacturing equipment.
- The company should not be typified by either large or small component variety.
- The batch sizes and the batch size range of products of the companies it is relatively small.
Athersmith and Crookall Rajagopal and Smith Gupta Andand Grayson have suggested. Another way of finding out the suitability of GT for a batch production industry. Computer simulation has been used by the effect of the introduction of GT in the batch production. Industries based on the parameters such as throughput time. WIP inventory and plant utilization Further GT are considered a desirable stepping stone for establishing Just-In-Time production.
December 21, 2018
Explanation of the Major Elements of Operations Management

Operations management is the business function that responds to planning, organizing, coordinating and controlling the resources needed to produce a company’s products and services. The operations function can be connected to other functional operations within the organization such as marketing, finance, human resource and etc. The process of changing inputs into outputs thereby adding value to some entity. Right quality, right quantity, right time and right price are the four basic requirements of the customers and as such, they determine the extent of customer satisfaction. Do you study to learn: If Yes? Then read the lot. Let’s Study: Explanation of the Major Elements of Operations Management.

The concept of Elements Discussing the topic: Explanation of the Major Elements of Operations Management.

The operations manager is the person who supervised the production, makes the decision on operations processes and regarding connecting into other functional areas. Thus, today every company realized that operations management is important and also agreed that is the main core function to organize their organization. So it can be described that all functional areas undertake operations activities because they all produce the services and goods.

The Major elements of Operations Management:

The following elements are below.

Selection and Design:

The right kind of products and good designs of the products are crucial for the success of an organizing. A wrong selection of the product and/or poor design of the products can render the company’s operation ineffective and non-competitive. Products/services, therefore, must be chosen after a detailed evaluation of the product/services alternatives in conformity with the organization’s objectives. Techniques like value engineering may be employed in creating alternate designs, which are free from unnecessary features and meet the intended functions at the lowest cost.

The Process, Selection, and Planning:

Selection of the optimal “conversion system” is as important as the choice of products/services and their design. Process selection decisions include decisions concerning the choice of technology, equipment, machines, material handling systems, mechanization, and automation. Process planning involves detailing of processes if resource conversion required and their sequence.

Plant location:

Plant location decisions are strategic decisions and once the plant is set up at a location, it is comparatively immobile and can be shifted later only at a considerable cost and interruption of production. Although the problem of location choice does not fall within preview the production function and it occurs infrequently, yet it is of crucial importance because of its major effect on the performance of every department including production. Therefore, it is important to choose the right location, which will minimize the total “delivered customer” cost (Production and distribution cost). Locational decisions involve evaluation of locational alternatives against the multiplicity of relevant factors considering their relative importance to the organization and selecting those, which are operationally advantageous to the organization.

Facilities layout and materials handling:

Plant layout is concerned with the relative location of one department (Work center) with another in order to facilitate material flow and processing of a product in the most efficient manner through the shortest possible time. A good layout reduces material handling cost, eliminates delays and congestion, improves coordination, provide good housekeeping etc. while a poor layout results in congestion, waste, frustration, inefficiency, and loss of profit.

The Planning of capacity:

Capacity planning concerns determination and acquisition of productive resource to ensure that their availability matches the demand. Capacity decisions have a direct influence on the performance of the production system in respect of both resource productivity and customer service (i.e. delivery performance). Excess capacity results in low resource productivity while inadequate capacity leads to poor customer service. Capacity planning decisions can be short-term decisions. Long-term capacity planning decisions concern expansion/contraction of major facilities required in the conversion process, the economics of multiple shift operation, development of vendors for major components etc. Short-term capacity planning decisions concern issues like overtime working, sub-contracting, shift adjustments etc. Break-even analysis is a valuable tool for capacity planning.

Production, Planning, and Control (PPC):

Production planning is the system for specifying the production procedure to obtain the desired output in a given time at optimum cost in conformance with the specified standard of quality, and control is essential to ensure that manufacturing takes place in the manner stated in the plan. Also learn, What is Planning?

Control of Inventory:

Inventory control deals with the determination of optimal inventory levels of raw materials, components, parts, tools; finished goods, spares, and supplies to ensure their availability with minimum capital lock up. Material requirement planning (MRP) and just in time (JIT) are the latest techniques that can help the firm to reduce inventory.

Assurance and Control of Quality:

Quality is an important aspect of the production system and it must ensure that services and products produced by the company conform to the declared quality standards at the minimum cost. A total quality assurance system includes such aspects as setting standards of quality, inspection of purchased and sub-contracted parts, control of quality during manufacture and inspection of finished product including performance testing etc.

Work-study and Job design:

Work-study, also called time and motion study, is concerned with the improvement of productivity in the existing jobs and the maximization of productivity in the design of new jobs. Two principal component of work-study is Method study and Work Measurement.

Maintenance and replacement:

Maintenance and replacement involve selection of optimal maintenance (preventive and/or breakdown) policy to ensure higher equipment availability at minimum maintenance and repair cost. Preventive maintenance, which includes preventive inspection, planned lubrication, periodic cleaning and upkeep, planned replacement of parts, condition monitoring of the equipment and machines, etc. is most appropriate for critical machines.

Reduction and Control of Cost:

Effective production management must ensure the minimum cost of production and in this context cost reduction and cost control acquire significant importance. If you know what is the cost of capital also help for control. There is a large number of tools and techniques available that can help to make a heavy dent on the production cost.

Image credit from ilearnlot.com.

October 18, 2018
What is Operations Management? Meaning and Definition

Operation Management is a way or means through which the listed objectives of an operating system achieve. There is always confusion between the word OM & PM. It an accepted norm that OM includes techniques that are enabling the achievement of operational objectives in an operating system. The operations function can connect to other functional operations within the organization such as marketing, finance, human resource and etc.; so, it can describe that all functional areas undertake operations activities because they all produce production services and goods. So, the question is: What is Operations Management? Meaning and Definition.

Operations Management is explaining into Meaning and Definition.

The operating system includes both manufacturing sectors as well as the service sector; but when you use the word PM, you should be careful to note that it refers to the manufacturing sector but not the service sector. Suppose, you are designing a layout for the hospital you should say that you are applying the Operations Management Technique not the Production Management Technique.

What is Operations Management?

Meaning: Operations management is the business function that is responsible for managing and coordinating the resources need to produce a company’s products and services. All types of organizations must carry out operations management because all companies produce a mixture of products and services.

Operations management is an important factor in any organization. The decisions that the organization makes will have a major impact on the cost of the products and/or services; and, its delivery which results in the revenue coming into the organization, whether it is manufacturing, retail, or services sectors such as IT, finance logistics, transportation, healthcare or public utility or educational, the service delivery pipelines must carefully design, resource and manage effectively and efficiently.

The effectiveness of the system determined by the success with which various subsystems and components interact with each other and with the environment in which the organization operates.

Definition of Operations Management:

“Operations Management as the process whereby resources, flowing within a defined system, are combined and transformed by a controlled manner to add value in accordance with policies communicated by management” – Joseph G. Monks.

Operations management (OM) is concerned with managing the resources that directly produce the organization’s service and products. The resources generally consist of people, material, technology, and information but may go wider than this. These resources are brought together by a series of processes; so, that they are utilized to deliver the primary service or product of the organization. Thus operation management is concerned with managing inputs (resources) through transformation processes to deliver outputs (service or products).

The largest activities that OM focuses on our product creation and service development, and the efficiency with which both distributed. Operations management often includes analyzing a company’s internal processes. Ultimately, the way that an organization carries out operations management depends upon the nature of products or services that it offers. Managing purchases, monitoring inventory, and preserving quality are the primary goals.

Image Credit from ilearnlot.com.

October 17, 2018