OPERATION MANAGEMENT

Operation Management

Executive Summary

We can define operations management as the area of Business Administration dedicated to both research and the implementation of all those actions that tend to generate greater value added through the planning, organization, direction and control in the production of both goods and of services, all aimed at increasing quality, productivity, improve customer satisfaction for customers and reduce costs. In this study, we try to explore the concept of operations management in a holistic context. The main focus of the research is on operations management and its relation with lean manufacturing. The research also analyzes many aspects of operation management and tries to gauge its effect on lean manufacturing. Finally, the research describes various factors, which are responsible operation management and tries to describe the overall effect of operation management on lean manufacturing, research on lean manufacturing implementation process in personal computers. The main outcome of the study is to analyse the ways to enhance the performance excellence in business through lean manufacturing through operation management along with the context of the issues arising in it.

Executive Summary2

Introduction5

Simulation Analysis of the Problem7

Critical Review of Salient Features of Lean Paradigm8

Various Advantages Exist Of Supply Chain That Makes It An Important Aspect Of Any Business8

Value added concept8

Time saving9

Personal Computers Manufacturing Company9

Target Market9

Sales Location10

Analyzing Work Cells Manufacturing Facility10

Implementation10

Operations Strategy11

Goals11

Operations Management Competitive Priorities11

Cost11

Quality planning12

Quality Control12

Quality Improvement12

Flow Strategy Used in Personal computers manufacturing limited13

Strategies to improve operating efficiency14

1. Just in time14

Implementation14

2. Lean operation:15

Inventory Management16

How Inventory Management System can be applied to the simulation17

Reorder point18

Continuous Improvement Program18

Operations Management Decision Problems18

Level production plan20

Chase demand plan20

Implications and Conclusions21

References23



Operation Management

Introduction

Operations management, to begin with a simple definition, is defined as a set pattern of rules, regulations and processes that would help and align all the core components of business operations, in the midst of producing or delivering quality goods or services. Operations management must be inculcated into the organization for the sole purpose of managing all courses of action that prevail in cost-effective and timely execution of operations and smoothly running a business. Activities that come under the head of operations management include primary activities that cover the discipline of quality assurance (QA), environmental protection and responsibility, production, manufacturing, warehousing, inventory, supply chain, logistics, packaging, etc (Swank, 2003, pp. 45-57) .

Operational management is all activities related to the deliberate transformation of materials, information or customers. Operating function includes activities that result in manufactured goods and services supplied by the organization to the external environment. Organization may vary greatly in nature operating functions. For example, in industrial raw materials are processed, and the first from the raw produce individual parts and components, then assemble them into finished products.

The strategy of operations is a vision of the role of operations depending on the direction or general impulsion for the decision plan. This vision must be integrated with business strategy and often, but not always, reflected in a plan formal. The operations strategy should result in a consistent pattern of decision making in the operations and competitive advantage for ...