Operation Management

Operation Management

Table of Index

TASK 19.1.A4

TASK 19.1.B7

TASK 19.1.C8

EVALUATION OF CURRENT OPERATIONS AND GILLIAN'S BUSINESS STRATEGY8

Gillian's Aims and Objectives8

Sales Forecast8

Line Extension9

TASK 19.2.A10

Capacity Constraints10

Production Line10

Milking Parlour11

Distribution12

TASK 19.2.B13

Raw Material Stock Control13

TASK 19.2.C15

RECOMMENDATIONS AND ACTION PLAN15

Business Aims and Objectives15

Sales Forecast15

Line Extension16

TASK 19.3.A17

Capacity Constraints17

Production Line17

TASK 19.3.B18

Milking Parlour18

Distribution20

Other Problems20

Raw Material Stock Control20

Inventory control of final products21

Aggregate Planning22

Cash Flow Analysis22

REFERENCES24

Operation Management

Task 19.1.a

In the world of business there are many essential parts to a successful operation. Some may say that marketing, production and/or sales are the most important part of any business, but after studying the process of operation management, it is found to be the backbone of any business process. Operation management embodies all aspects of the business process and unites them to create an efficient resourceful procedure. In order to stand out and be a market leader a company needs to have a strong management for operational activities. Operation managerial work can be effective in terms of cost, quality, reliability, flexibility and responsiveness. This essay will give a brief explanation on Operation Manager (OM), importance of operational management, functions of operation manager, strategic decisions and factors for effective operational activity.

A manager is someone who works with people and through coordinating with them accomplishes organizational goals (Robbins, Stagg, Coulter, 2003, p.10). But why employ OM? Though a relatively new field of research and still several evolving, many businesses employ it as a way to increase productivity and reduce error. OM allows companies to be more competitive by reducing unnecessary cost involved when resources are squandered. OM allows business to operate more efficiently. Operation management is the integration of all aspects of the business process. It was once said:All parts of the system must be constructed with reference to all other parts, since in one sense, all parts form one machine. Like any other machine the failure of one part to cooperate properly with the other parts, disorganizes the whole and renders it inoperative for the purpose intended. Albert Einstein:Importance of Operation Management:-"Operations management is concerned with creating, operating and controlling a transformation system which takes inputs of a variety of resources and produces outputs of goods and services which are needed by customers" (Naylor 1996.p.9). Operation management can benefit an organization in following ways:-?It can reduce the costs of producing products and services by being efficient (Ghoshal 1995).

It can increase revenue by increasing customer satisfaction through good quality and service.

It can reduce the amount of investment that is necessary to produce the required type and quantity of products and services by increasing the effective capacity of the operation and being innovative in how it uses its physical resources.

It can provide the basis for future innovations by building a solid base of operations skills and knowledge within the business (Halpern 1996).This is the essential explanation of Operation management.

After the organization of a business has occurred, the next step is to further explore the company's mission. The Operation strategy should represent that of the company's mission, and successfully follow ...