OPERATIONS MANAGEMENT

Operations Management

Abstract

Operations management is concerned with the efficiency and effectiveness of business operations. The important aspects of operations management include product and service design and operation of systems to produce these goods and services. In precise words, operations management involves planning, scheduling, and controlling diverse activities to transform inputs into outputs. A variety of factors have resulted in the advancement of operations management. These factors include the rapid increase in population, technological change, and increased consumerism. Operations management has undergone several changes in its structure and implementation. In modern operations management, the focus is on technological innovation, customer satisfaction, product quality, and use of the latest models for better decision making.

Table of Contents

Abstractii

Introduction1

Discussion2

Historical Trends of Operations Management2

Operations Strategy4

Cost5

Quality5

Speed of Delivery5

Flexibility6

Porter's Value Chain7

Operations Mix8

Practical Aspects of Operations Management - Real Life Case Studies9

Toyota's JIT Revolution9

Tata Iron and Steel Company (TISCO)10

Conclusion11

References13

Operations Management

Introduction

Every organization offers tangible or intangible products. The set of operations that make these products are at the heart of every organization. Operations management involves the way in which operations of an organization are designed, planned, organised, and controlled. Operations management shows how a variety of inputs can be turned into output (Waters, 1999, pp.1).

In the recent years, organizations have started to put more emphasis on operations management. It is because of the increasing international competition and changing customer expectations. Due to these factors, organizations are endeavouring to improve their manufacturing operations (Waters, 1999, pp.2).

In principle, operations describe what organizations do. For instance, at IBM, operations make computers. Similarly, operations at the British Broadcasting Corporation make radio and television programs. Products include goods and services which an organization provides. However, operations include various activities which are directly involved in the making of these products (Waters, 1999, pp.2).

The operations in different organizations are not similar. They differ in terms of volume, variation in demand, variety of products, customer demand, and balance between goods and services. Nevertheless, there are a few similarities including buying raw materials, using a process to transform these raw materials into output and organizing resources (Waters, 1999, pp.6).

Some of the important aspects of operations management include quality, revenue and value. In modern operations management, there is a great emphasis on the quality of products. The concept of quality has also undergone some changes. Nowadays, the demand is not for the best quality but for the quality which is most suited for the purpose. Revenue is also an important concern for operations management. Operations management is satisfied as long as revenue is more than the cost. The modern operations management has realized that it is the value of products rather than the cost which is important. Apart from quality, revenue, and value, flexibility is also an important concern for operations managers. As far as operations management is concerned, flexibility is needed in customer demand, operation systems, and capacity. The induction of computers and advanced software has revolutionized operations management by increasing the flexibility of operations (Saxena, 2009, pp. 9).

Discussion

Historical Trends of Operations Management

The Industrial Revolution

The ...