OPERATIONS AND INFORMATION MANAGEMENT

Operations and Information Management



Executive Summary2

Introduction2

Defining Operations Management2

Manufacturing and Service Operations3

Process types/Models in Manufacturing Operations3

Process Types/Models in Service Operations4

Lean System4

Applying Lean to Banking Sector4

Opportunity and Challenges5

Managing Risks and Controlling Quality6

Doing It Right7

Gaining Advantages of Lean7

Finding Waste7

Elimination of Variances8

To Quantify Cost and Value8

Future Impacts of Globalization on Banking Sector8

Globalization and Quality: A Lean Perspective9

Quality and Environmental Management System10

Cost of Quality (COQ) Management10

Quality in a New World Market11

Conclusion12

References13

Operations and Information Management

Executive Summary

The report discusses the operations management approaches from a globalization perspective. Globalization increased competition among companies, nationally and internationally. Many production systems have emerged to incorporate the best for the companies. Lean or Just in Time production system, introduced by Toyota seems to be most effective and realistic approach to production. Since its introduction, lean has been used by many manufacturing and service firms. This study discusses the application of lean system in the banking sector. Banking operations have a lot of processes involved, which create a lot of waste. A lean service approach can be the best to reduce the processes and ultimately risks attached to it.

Introduction

Defining Operations Management

Operations management is the area of management which includes overseeing, designing and finally controlling the production process and redesigning the business operations in producing goods and services. It makes sure the responsibility of ensuring the business operations in terms of efficient use of resources in order to provide the best finished products/services.

Manufacturing and Service Operations

Organizations can broadly be classified in two broad categories; manufacturing and services. Manufacturing companies produce products which are physical and tangible items and storable as inventory. Service companies provide intangible items that can not be produced op provided ahead of time. The service operations account for a large proportion of industrialized economies throughout the world. This has made it very significant for service industries to thrive for the best approaches to operations and information management to create efficiency. In a service organization, the customer will be highly involved with the service production process. However, it must not be assumed that all employees have to deal directly with the customers (Porter, 2009, pp. 7).

Process types/Models in Manufacturing Operations

The manufacturing operations use project, jobbing, batch, mass and continuous production models to produce their products. Batch production involves single production run. It produces the quantity in a single run. Every batch can use customized techniques for manufacturing. Mass production is used while producing a standardized and non customized product. The same technique is used throughout the production process. Continuous production, products flow through a linear process. Such operations are usually used for the products which are not discrete. Job production or jobbing involves producing customized work for a particular product or small batch.

Process Types/Models in Service Operations

Service organizations use three models for operations, namely, professional services, service shops and mass services. The types or models of service highly depend upon the orientation of services. Mass services are types of services designed generally for all the potential ...