OPERATIONS MANAGEMENT

OPERATIONS MANAGEMENT



Logistics and Operations Management

Operations management

Operations management is defined as a process in which all the operations of the organization are monitored on regular basis. It involves transforming input resources into output resources. The input resources include human and materials while the output resources include goods and services. Operations management is the most important function of an organization so that it can monitor proper functioning of products and services, which is the main reason for their existence.

It is very important for all the organizations to monitor their operations so that they can produce efficiently (Nigel et al, 2001, pp 15-55). The operations of an organization are generally monitored by the operation manager. Operation manager is responsible for the timely management and production in an organization. The operations function is responsible for fulfilling the customer's needs and demands by delivering those better and fast services.

Five objectives of the operations management

Although operations management is used in all the main functions of the organization related to operations but its main objective is to evaluate five performance measures which can bring effectiveness in the business strategies align with the best customer services. The operations managers in the organizations are responsible for the cost, quality, flexibility, speed and dependability of the products (Rogers et al, 2005, p 53-74). Managers use different measures by which they can examine the performance of the operations. They evaluate process capacity, flow time, cycle time, set up time, direct labor content and direct labor utilization.

Quality

If the quality of the product delivered matches the same standards as it was mentioned by the customer then it is called as highest quality. Quality performance can be measured by delivering the right things to right customers at the right time. The product delivered to the customer is error free and it is meeting the specifications of the customer. Quality builds the reputation of the company so it is important for every organization to not to compromise on the quality of its products or services. Companies before delivering the product to its final customer, make sure that the product is performing well.

Speed

Operations are performing well, when all the processes and procedures take place at the faster pace. It is the responsibility of the operation manager to minimize the lag time of the process activity and to reduce lead time of the activity. Organizations can differentiate their operations from other organizations just by increasing time of the product delivery. Organizations have to evaluate their internal value chain process and to reduce 5tehir system lag time so that they can increase speed of the operation. Organizations are reducing their wasted time by using various techniques and tools used in the Lean manufacturing.

Dependability

It is defined as the performance measures which make sure that all the operations are done on time and the company is fulfilling the promises with its suppliers and customers. Organizations have to make their good reputation by being true to their customers and suppliers; and they can do this by giving important and significant ...