Operations Management Describe what the term “Operations Management” means and be able to apply it within organizations. The operations management is defined as the main function of business that is responsible for the planning, organizing, controlling and coordinating the resources that are needed for the production of the company’s goods and services. The term can be easily applied in all types of product-oriented and service-oriented businesses because they have to accumulate the resources for offering the required products and services to the customers. Describe how focus dimensions affect the selection of a process structure and develop advantages and disadvantages for using each process structure in a specific situation. When the process structures are being designed, there are key focus dimensions that have to be evaluated by every company i. e.
capacity, flexibility, reliability, quality, efficiency, cost and delivery speed of the offering. For instance, if the customers want quick service or fast-food item, then the company will have to ensure that it offers high quality service or product in a fast and cost-effective way by making use of reliable and flexible resources and equipment so that capacity is efficiently utilized. Distinguish between operations management duties, activities, and requirements in service organizations and manufacturing organizations. Although the operation management procedures are similar in both types of organizations but there are certain factors that impact the operation process in such companies.
The strategic differentiating factors are the type of products, customer contact, service package, standardized versus customized offerings and delivery or response time. The following figure can clearly explain the differences in operations management of the two types of organizations: (Source: Slack, Stuart and Robert, 6) Explain the term “materials requirement planning” and develop an MRP plan. The vital element in the entire operations management is the planning and scheduling of the materials.
The most commonly used tool is the Material Requirement Planning (MRP) that comprises of all basic elements required for effective production. MRP is defined as the system in which production planning and inventory controlling activities are well-coordinated so that the complete manufacturing process is effectively managed. Majority of these systems are based on specific software; the MRP plan comprises of following three crucial components: 1. Ensuring availability of materials for the production so that the products are delivered to the customers on time. 2.
In stores, adequate level of products is maintained and material is sufficiently retained for production purposes. 3. All three activities i. e. manufacturing, delivery schedules and purchasing are effectively performed. Describe how supply chain management can affect manufacturing and services organizations. SCM is defined as the management of an organization’s network of interrelated businesses that are the important constituents for the rudiments of service or product package that is required by an end consumer in the supply chain. The process comprises of all activities from storage of materials in raw process to work-in-process inventory and finally to finished goods i. e.
from their point of origination to the consumption point. Every step in SCM is important for the organization because if there is no adequate supply of finished goods or services as demanded by the customers then the sales of the company will be severely impacted. Know how the product development process is organized and how to use it to develop service and manufactured products. The product development process comprises of various stages such as generation of ideas, screening them, development and testing of concepts, analysis of the business and its environment, testing the product or service in the market along with Beta testing, modify the product or service according to customer’s demands, design the offering with manufacturing in focus, prototypes are built and tested, production is ramped up and product or service is launched.
In this way, an organization can decide about introducing new products or services in the market. Discuss how to apply quality management programs to achieve improved quality. The operations management process is an ever changing process that requires continuous improvement techniques so that it can enhance its service level or product offering on a consistent basis.
In order to apply the quality management programs such as Total Quality Management, Just-in-time inventory, Kaizen, Six sigma and etc. , an organization has to develop specific tools to assess its quality level frequently so that it can enhance its level significantly. The most effective tools are benchmarking and Statistical Process Control (SPC) that allow an organization to make necessary changes when required.
Conclusion Hence, operations management is a vital part of every form of organization so that it can maintain its competitive edge in the market for a long period. It is vital for the organizations to manage their operations by following the operational activities properly and strategically. Work cited Slack, Nigel, Stuart Chambers and Robert Johnston. Operations Management. 6th ed. Essex, England: Pearson Education Ltd, 2010. Print.