OPERATIONS MANAGEMENT

Impact of Operations Management on Decision Making

Impact of Operations Management on Decision Making

Introduction

Operations management is a multi-disciplinary field that focuses on managing all aspects of an organisation's operations and decision making. The typical company carries out various functions as a part of its operation. The dividing of a company's activities into functional categories occurs very early on, even in a company formed and operated by a single individual (Moody, 2002: p46). Most companies make a product of some kind or produce a salable service. They must also carry out a sales and marketing function, an accounting function, and an administrative function to manage employees and the business as a whole. Operations management focuses on the function of providing the product or service. Their job is to assure the production of a quality good and/or service. They apply ideas and technologies to increase productivity and reduce costs, improve flexibility to meet rapidly changing customer needs, assure a safe workplace for all employees, and when possible assist in assuring high-quality customer service (Thrun, 2002: p221).

For the most part, the title "Operations Manager" is used in companies that produce a tangible good—manufacturers on the whole. In service-oriented businesses, the person responsible for the operations manager role is often called by another name, one that addresses the service being offered. Examples include project manager, consultant, lawyer, accountant, office manager, datacenter manager, etc.

Operations Management and Decision Making

As an organisation develops plans and strategies to deal with the opportunities and challenges that arise in its particular operating environment, it should design a system that is capable of producing quality services and goods in the quantities demanded and in the time frames necessary to meet the businesses obligations. Following decision are very important in operations management (Williams, 2006).

Designing the System

Designing the system begins with product development. Product development involves determining the characteristics and features of the product or service to be sold. It should begin with an assessment of customer needs and eventually grow into a detailed product design. The facilities and equipment used in production, as well as the information systems needed to monitor and control performance, are all a part of this system design process. In fact, manufacturing process decisions are integral to the ultimate success or failure of the system (Kusiak, 2002). Of all the structural decisions that the operations manager makes, the one likely to have the greatest impact on the operation's success is choice of the process technology. This decision answers the basic question: How will the product be made?

Product design is a critical task because it helps to determine the characteristics and features of the product, as well as how the product functions. Product design determines a product's cost and quality, as well as its features and performance. These are important factors on which customers make purchasing decisions. In recent years, new design models such as Design for Manufacturing and Assembly (DFMA) have been implemented to improve product quality and lower ...