OPERATION MANAGEMENT

Operation Management

Operation Management

Question 1:

In the world of business there are many essential parts to a successful operation. Some may say that marketing, production and/or sales are the most important part of any business, but after studying the process of operation management, it is found to be the backbone of any business process. Operation management embodies all aspects of the business process and unites them to create an efficient resourceful procedure (Kumar, 1993, pp.84-92).

In recent years, there has been a shift in IT related companies away from vertical integration toward smaller, leaner operations. Organizations have downsized, focused on core competencies, and attempted to achieve competitive advantage by leveraging their suppliers' capabilities and technologies. Many have reduced their supplier base to more effectively manage relationships with strategic suppliers, and developed cooperative, mutually beneficial relationships with all suppliers. Starburst should consider this fact that by exploiting suppliers' capabilities, Improvements in product quality, quicker integration of technological breakthroughs, and shorter new product development leadtimes are the expected outcomes. Suppliers can also be involved in product design at an earlier stage, and in doing so, generate more cost-effective design choices, develop alternative conceptual solutions, select the best components and technologies, and assist in design assessment. In this case the OD of Starburst should consider this fact that greater dependence on suppliers increases the need to effectively manage suppliers. Three dimensions underlie supplier management: (1) effective supplier selection; (2) innovative supplier development strategies; and (3) meaningful supplier performance assessment mechanisms (Matthews, 2006, pp. 29-35).

While firms differ in the specific approaches used to manage suppliers, certain trends can be observed. Quantifiable or "hard" criteria such as price, delivery, quality, and service are routinely used for supplier selection and assessment (Hahn et al. 1990). "Soft," difficult-to-quantify factors such as management compatibility and strategic direction of the supplier have also been shown to be important, particularly in the context of strategic buyer-supplier partnerships. Site visits, training, and alternative suppliers are frequently used to stimulate improved supplier performance ((Casadesús, 2005, pp. 345-357). While much has been written about the importance of supplier management and the tactics used to do so, little evide nce exists regarding the impact of specific tactics on performance. Some researchers have examined the impact of supplier development on supplier performance, and some have investigated the impact of supplier selection and involvement on the buying firm's manufacturing performance.

However, no evidence exists on the impact of supplier management on a buying firm's business performance. This study uses a survey to examine relationships between the perceived importance of supplier selection and assessment criteria for items being used in production, and business performance.

Using the categorization scheme, supplier selection research can be categorized as either descriptive, describing actual practice, or prescriptive, modeling how suppliers should be selected given a set of selection criteria. Descriptive studies have addressed a wide array of issues. Early studies focused on identifying the criteria used by buyers to select suppliers. These have been extended to identify supplier selection under specific buying conditions; for example, ...