Operations Management-A Look at Three Successful Business Models

Introduction:3

Operations Management3

Business Models in Focus6

John Deere6

Pitney Bowles7

Xerox Data Systems8

Conclusion:8

Works Cited9

Introduction:

The managing process to design, produce and distribute products and services is Operations Management. It also deals with utilization of resources, delivery of goods and services to customers.

In general it is the way how organizations produce goods and services and deliver the same to the clients.

Operations Management

“Operations Management is that activity whereby resources, flowing within a defined system, are combined and transformed in a controlled manner to add value in accordance with policies communicated by management.” (J. G. Monks, 1987, p. 87)

The process of transforming inputs into outputs is an operation. Operations differ upon many factors depending upon the volume of their outputs, variety of their outputs, when there is a variation in demand and also on the customer contract. As a result of these factors each type of operation is unique and has its own limits and is not completely feasible with one another.

Unique characteristics in service process like customer influence, intangibility, inseparability of production and consumption, heterogeneity, perish-ability, and labor intensity are not used in manufacturing process and the characteristics of manufacturing process are insufficient when applied to service operations, as a result managing service processes and manufacturing process in an organization have to be dealt separately.

Service process involves mostly with the customers who are usually outsiders to the organization where as manufacturing operations are in relation with the production of goods and services having minimal contact with the customers and managers of service operations. (Hartness p. 157-164)

Operations used for manufacturing process are limited in comparison to that of service operations and are not sufficient to fulfill the needs, wants and tasks of a service operation.

A survey was used to discover how the service characteristics gained importance and to determine the important areas of service management. According to the table the respondents who ranked themselves either 1 or 2 and 4 or 5 were categorized as manufacturing and service types respectively. Those who ranked themselves 3 were classified mixed types. Result was that the service types did more manufacturing research than those who categorized themselves as manufacturing types. (Alan Jack p.185-202)

Manufacturing operations lack nowhere behind the service operations as a project manager of a manufacturing division acts as a liaison contract for the project and has to keep a track on what plans are being executed by the team. Like service manager, a project manager also faces great complexity, difficulties and challenges during the interrelationships of shifts and tasks.

When it comes to managing a project the duties of a manufacturing and service manager coincide. The targets, conclusion and aim are the points to focus in either of the operation managements. (Richard et al. P. 87-98)

It is also said that in the emerging models of the industry, every organization is more focused in the service operations. Irrespective of the nature, every organization is inclined towards service operations. Thus a manufacturing operation also works upon the strategies of service operations as the managing personnel ...