OPERATIONS STRATEGY

Operations Strategy



Operations strategy

Introduction

Operations management focuses on carefully managing the processes to produce and distribute products and services. Usually, small businesses don't talk about "operations management", but they carry out the activities that management schools typically associate with the phrase "operations management." Major, overall activities often include product creation, development, production and distribution. (These activities are also associated with Product and Service Management. (Alan Pilkington, Jack Meredith, 2009, 65-88)

However product management is usually in regard to one or more closely related product -- that is, a product line. Operations management is in regard to all operations within the organization.) Related activities include managing purchases, inventory control, quality control, storage, logistics and evaluations. A great deal of focus is on efficiency and effectiveness of processes. Therefore, operations management often includes substantial measurement and analysis of internal processes. Ultimately, the nature of how operations management is carried out in an organization depends very much on the nature of products or services in the organization, for example, retail, manufacturing, wholesale, etc.

It is true that most of the functions of operations management are based on the assumption that there is only one concern and that is the manufacturing process. The basic ideal for designing the operation management was manufacturing industries. Nevertheless, as service industry has evolved in this era, there is a need felt of applying the concepts of operations management that were before applied to the manufacturing industries to the service industry. How far can this is accomplished is quite uncertain. (Alan Pilkington, Jack Meredith, 2009, 65-88)

Explanation

However, one thing is for sure; various operations management functions can be can be applied to the services sector. Like services provided by a bank, which to some is similar in function to the company making the pizzas as both are services. However, the thing that is different is the role of customers. In the service industries, personal service is offered and the customer is more immediately active. Customer reaction is more immediate and less predictable so such systems demand more sensitive, personal control. The degree of customer contact affects system efficiency. The Medical profession's case about health service reforms argues that a doctor cannot plan his/her work as effectively as he/she would like as the consulting needs of patients vary. Productivity is more difficult to measure and quality involves more subjective assessment.

Managers must balance potentially conflicting objectives such as customer satisfaction versus efficient resource utilization in decisions about product design, job and work design, location, process planning/control, scheduling and inventory. (Alan Pilkington, Jack Meredith, 2009, 65-88)

All organizations have operations. A manufacturing company may conduct operations in a foundry, mill, or factory. Our interest is in the management of operations, or operations management (OM), including the usual management cycle of planning, implementing, and monitoring/controlling. The driving force for OM must be an overriding goal of continually improving service to customers, where Since customer means the next process as well as the final, external user. There is an operation element in every function of ...