Operations Management
Production and operations management is not an elusive term used to describe some vague concepts; instead it simply refers to management of all the processes and systems that help in the production of goods. As we all know that production requires efficient and organized use of human capital, materials, resources and machines. However all these components of production need to be supervised and they must work in an efficient manner in order to produce goods and services on time without delay or faults. Production and operation functions thus include collection of resources, efficient distribution of these resources among concerned departments, planning the different phases of production, inventory management, making proper schedules for completion of tasks, controlling and improving product quality which is known as quality management. These main functions of production and operations remain the same in all firms regardless the nature of their business. With current advancement in IT and with more firms adopting latest technologies, IT management has also become a core function in many firms.
Now let us focus on strategic importance of POM functions compared to other functions in an organization. The reason POM functions are given importance is based on the fact that these functions affect other functions in an organization. Smooth management of production and operations concerns can cast a positive influence of other simpler tasks. Other functions in an organization include delegation of responsibility, actual implementation of planning stages, meeting targets and deadlines etc. however all these functions are dependent on POM functions. If the latter are not carried out smoothly, the former suffer miserably. Let us see the strategic importance of one of the POM function and this will help us understand why these functions vary such weight. Supply chain management is one of the key POM function. Supply chain management refers to placement of orders and acquisition of resources of time. While the buyers or distributors are worried about timely deliveries of products and efficiency of products, manufacturers are more concerned about how their customers judge demand and place orders. This is because unpredictable changes in demand can force the customers to place orders for products whose production level has not yet been increased. For this reason, supply chain management has become a major issue.
Supply chain management sounds like a complex series of integrated activities but it all boils down to one simple end i.e. customers must always have the items as and when required. Roger Blackwell, a professor of business studies at Ohio State University and acclaimed author of quite a few best-selling books on the subject of supply chain says, "Supply-chain management is all about having the right product in the right place, at the right price, at the right time, and in the right condition." (Tom Stein and Jeff Sweat, 1998) anything that goes wrong in this one function can negatively affect other important functions in an organization.
Just-in-time management is a new and powerful approach that many businesses are adopting today. This method of operation focuses on the timely production of goods and services so the risk of wastage can be significantly reduced or eliminated and JIT is quite different from traditional means of operation management. For example in the traditional OM strategy, firms would order inventory in advance, which often created problems, this has been eliminated by JIT concept. When the orders for supplies are made way in advance of the actual production time, it often creates problems as inventory is either damaged due to delays in production or it often proves to be in surplus. This leads to wastage of resources, which would have been used more efficiently, for this reason JIT-management approach is adopted by some companies.
Chen H. Chung (1999) writes, "Since time is of human essence, a better understanding of the nature of time helps enhance managerial effectiveness. The JIT concept is not just in time. While it is important to produce products at the right time, issues such as quality management, waste elimination, work improvement, maintenance, procurement, etc. are fundamental to the successful implementation of JIT and therefore have occupied most of the JIT literature."
Just in time therefore minimizes waste that occurs from advanced booking or placement of orders and also reduces the need for maintaining inventory. Barbara B. Flynn (1995) believes JIT leads to: "improved quality performance in several respects. First, as components, parts, and finished goods spend less time in inventory, the potential for damage during handling and for spoilage during extended storage periods is reduced. These effects improve quality performance in terms of scrap...
Operations Management Course Title: Operations Management Textbook Operations Management: An Integrated Approach (4th edition) R. Ried Nada Sanders, 2010 ( chaps attached) This assignment part 2 a previous assignment I chose a fitness center business choice. Measurement of quality characteristics of business Measurement of business quality and selection of statistics which will be used to measure business quality depends on three major activities. The first is the selection of goals upon which the
Operations Management Boeing: Boeing is the largest aerospace company across the globe and the leading producer of commercial jetliners as well as space, defense, and security systems. Since the firm is a top American exporter, it supports airlines and American and allied customers in approximately 150 countries. The firm's products and customized services include commercial and military weapons, launch systems, satellites, aircrafts, electronic and defense systems, advanced information and communication systems,
Operations at Apple Inc. Statistical technique to measure the quality characteristics of Apple Inc. Six-sigma was created in the 1980s at Motorola as a strategy to measure and enhance high-volume processing procedures. Its overall objective was to measure and dispose of waste by endeavoring to accomplish nearly perfect outcomes. The term six sigma refers to a statistical technique of measuring quality with a maximum of 3.4 imperfections out of a million. Various
Management Comparison A Comparison of Six Sigma to Lean Manufacturing, Strategic Quality Management, and Total Quality Management There are a plethora of management strategies and perspectives that are being employed in operations and supply chain management in the modern business environment. Among the various theories being implemented, Six Sigma, Lean Manufacturing, Strategic Quality Management, and Total Quality Management are among the most popular. This paper will compare and contrast some of the
Management Control System Designing Management Control System (MCS) In the contemporary world, most companies apply the use of energy to plan, manage, and execute their operations in accordance with the demands of the market and the industry. This makes energy the most vital aspect of production in business entities. Energy is crucial in running machines, recording of information, execution of communication activities, and provision of lighting within the context of the company.
The Improve Phase of the DMAIC process is also essential for managing the piloting and testing of the Six Sigma solutions discovered. It is also essential during the new product development process for measuring and quantifying the unique value proposition of the product or service being produced as well. The final phase, Control, is essential in both a Six Sigma and new product introduction process as well (Pestorius, 2007). Conclusion The
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