OPERATION MANAGEMENT

Operation Management

Operation Management

Introduction

Perfection is the eventual and ultimate longing and aspiration for any firm belonging to the current competitive and stringent corporate arena. In order to attain the perfection, each and every firm scrutinizes all the aspects from commencement of operation to the final step, in order to ensure quality and reduction of wastage. The quality plays a key role in the success of any company. This is the reason why the companies mainly focus on the maintenance of quality.

Discussion

Operations Management is concerned with the analysis of firms' internal processes in order to improve performance. Successful Ops Mgt involves all aspects of a company, and includes all departments in the flow of communication. Processes are developed, reengineered or changed all together with the intent of being cost considerate, efficient and effective. The firms supply chain is of particular focus in operations management, as this covers the entire cycle of a product within a company, from acquisition of raw materials from a supplier to the delivery of finished product or service to the end customer. The role of operations management is a very pivotal one within a company because it is responsible for creating an overall sound, performing company, which links all of the departments, while utilizing their resources wholly.

Through the use of this process analyses companies can add value by:

• Identifying improvements in product production processes that can be converted into cost savings, and therefore allowing the company to pass-on these savings to their end customers; strengthening their competitive position.

• Streamlining of a company's infrastructure; making it more efficient.

• Streamlining of a company's inventory and supply chain issues; making it as lean and effective as possible.

• Identify and implement improvements in the company's administrative, accounting, purchasing, and other departments to modify or eliminate those that don't add value to the company.

There are two beneficiaries of good operations management: shareholders of the firm and the customers of the firm. Both parties enjoy the benefits of value being added through cost saving and effective and efficient processes. The former enjoys higher dividends and share prices and the latter gains through lower prices and better products/services. Continuous operations management of products and services within a firm, if successful, should keep end customer/clients/users satisfied through the timely delivery of an ever improving, cost effective product or service, which is desirable to said customer/client/user.

There are several classifications of operating systems. The best known of classification based on the degree of repeatability and degree of continuity of the work. The simplest of these divides the system as follows:

The design system is different in that each unit of final product or service on every order for any unique characteristics, so the operations are non-recurring in nature. For example, the system can operate in construction, heavy engineering services.

Continuous system is different in that the processing facilities provided by, for example, workpieces or serve customers through a system in series, or in groups. If the requirements for handling objects differ, they follow different routes through ...