Operations Management in Business

Changes in Manufacturing Process

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Introduction to Operations Management in Business

Every firm in the entire world either small or large have to perform operation management process. This management is helpful in designing, controlling and assessing the operations of the firm (Shim and Siegel, 2009). To maintain standards of production, operation management is very crucial.

In the present report, a manufacturing industry has to improve its operation management process by applying changes in the manufacturing process. They have to adopt new techniques and get innovations in order to attract their customers and other stakeholders. There are various fields in which changes can be adopted such as technology, marketing, production department, accounting and financing. These are the places where firm can introduce changes for getting improvement in their management system.

TASK 1

Why Operation management is necessary

Operation management is an important part of every firm today. No firm can survive with proper management system. It is important most especially for a manufacturing firm. It is because there are large number of departments which have to perform various functions (Slack, Jones and Johnston, 2013). Operation management includes designing, controlling and inspecting each and every element of the firm. All the procedures and impacts of a firm are fully dependent on operations management. With this, each department has their own different functions and targets. They have to complete their tasks in given time. It is the prior responsibility of operational manager to collect information of each and every department and send the report to the managers. 

If the tasks are not going well, then operational managers are held responsible for it. All impacts where favorable or unfavorable, are under the governance of operational managers. So it is also the duty of each department to perform well according to the conditions. If there is any issues regarding their work or environment than employees have full right to keep their points before supervisors (Wagen and Goonetilleke, 2007).

In a firm, if the performance of operational management is well than firm can enjoy their work conversely to it, if the operations are not going well than employees and managers have to face tough times. For a manufacturing industry, operational management plays a very significant role but it is also important to manage activities properly.

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Functions of operational management

In every firm operation management is the key to provide success. Here what management has to do is to provide the best services they can. Not only customers satisfaction is important but, keeping the internal factors healthy is more important. Customer’s satisfaction is latter outcome but if the internal environment is not proper than outcome is not possible (Wild, 2002). For maintaining goods relationship between internal factors, firm has to appoint a human resources manger who can maintain a decent environment in the environment of business. 

Internal factors includes employees, managers and supervisors. So employees are the main the resources of business who are dependable for business customer’s satisfaction. If there is any deficiency in the working performance of employees than it has to be rectified by the supervisors. The latter are those persons who works work managers. Supervisors inspects the working of employees and give the collected information to managers.

On the other hand, external factors such as suppliers and customers are also important stakeholders of the firm. Suppliers are those personnel from whom the firm purchases raw materials in order to manufacture goods and customers are the ones who consumes firm's products and get satisfied with consumption. Another stakeholder is he shareholders of the company who invest their money in the form of share to get return on investment in form of dividend (Sadler and Hines, 2002). The firm is build with the investments made by shareholders and after earning profit, it becomes the responsibility of the firm to give their share in the form of dividend.

Customer satisfaction is the main aim of business organizations, for competing with challenge, firm has to take timely feedback of customers. Their feedback play important role in taking alteration decisions by the firm.

Manufacturing process

In every manufacturing organization, there is a specific process of producing goods and services. In this firm also, there is a process followed in order to manufacture furniture products. So the process begins with inventory inward, which means the manufacturers receives raw materials from suppliers. That raw product gets stored in factories. The quantity purchased of raw goods is in bulk to reduce purchase cost. Bulk purchasing is always cost effective. After storing the raw products, goods get cut into pieces (Hugos, 2011). The reason behind cutting them is to manufacture them according to intended length. Those cut pieces are bonded together to form shapes and sizes. This step is followed by component fabrication step where the cut pieces are molded together to give attractive look. In the third step fabrication, cut shaped pieces are given proper shapes and surface to make them smooth. After shaping and smoothing them, pieces get assembled. With the help of glues and nails, they are assembled. This is the main important step to perform because without proper assembling product does not get quality and it can become inferior. If sold to customer then he or she have to get dissatisfied. Before packing the furniture, they get polished with teak oil which  gives it brown look and it performs the function of anti-termites oil too due to which it is not affected by insects and wheather conditions. After polishing the product, the nest step is check the quality of the product (Bagchi and Skjoett, 2002). For checking the product, a sample of products is used by the worker or manufacturers. Quality checking is necessary to perform to ensure the perfection of the product. After quality checking the product gets packed in container safely to deliver it to the customer. In the last stage of manufacturing process, the products gets delivered to the customer through transport.

Three E's (Economy, Efficiency and Effectiveness)

There are there E's present in the firm which different meanings, they are explained under: 

Economy: Most of the people relates economy with external factors of the firm but actually it is part of business too. The reason behind is that economy is affected by business firms only. The  products which a firm manufactures should not be too costly that customers face difficulties while buying them. So while manufacturing goods and services, firms have to draw attention towards the cost of production (Berkes, 2009). Every manufacturing company has responsibility to produce goods in limited prices. Another thing that affect economy is the market conditions. To remain constant in competition, firm has to keep prices of goods according to market.

Efficiency: Efficiency means the factor of production of resources of production. Here the resources are referred to employees who are involved in the manufacturing process. Firm has to use their resources in best manner to achieve good results. Efficient use of resources is very important to reduce the cost of production and improve the quality of production. Every manufacturing company seek to make full use of their resources, for this purpose,  they have to treat their resources well. Employees should be given proper attention by the managers (Akyildiz and et. al., 2008). Their feedbacks should be taken to know about their working conditions and to improve their environment if needed.

Effectiveness: Effectiveness is related with the satisfaction of customers. How effective the firm is can be measured through the satisfaction level of customers. Customers feedback is the tool used to measure the effectiveness of the firm. Their comments are important for the firm to apply changes in production process if needed. It is because customer’s needs and preferences are always changing so it is very crucial to know their feeling and desires about the products which the firm is producing (Pinkerton, 2011).

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Minimization of cost and maximization of product's quality

Minimizing cost and maximizing quality is the main objective of each and every firm because quality requires cost. For getting improvement in quality, firm has to apply efforts through their resources. Here resources are the manpower which produces goods and services. Their efforts can minimize cost of products. But it is not a simple task to perform. Efficient planning is required to minimize the production cost. There is no any other option except employee to remove this barrier, so they are focused mainly by the managers and supervisors to keep working properly under their supervision (Haimes, 2005). Employees are needed to encouraged for giving their best efforts in production. Their regular feedback increase their morale. Their view are considered regarding the manufacturing process and environmental conditions. Safety precautions are provided to employees to work in a safe area. Adequate packages should be given in order to receive good response from them in the form of quality products. 

The problem of minimization of cost ans maximization of quality is in the hands of employees, they are the only resources who can improve this situation. Proper management of employees is necessary for getting better results. Supervisors and human resource manager should also keep good watch on working process of employees. This makes feel good to employees that they are under the supervision of others and encourages them to give their full potential in the product (Zhixiao and Longzhi, 2011). 

Five Performance Objectives 

In the operation management, there are five performance objectives which need to be managed that supports in conducting sound operation management. These are as follows:

1.Cost: It is required to manage the cost of operation so that overall profitability of company can be increased. In this context, cited organization requires to manage the cost so that they can able to boost its operational efficiency. With this scenario, company can attain the objectives from reducing cost by applying varied strategies such as ordering raw material in bulk, applying mass production system and other related so that additional cost can be saved (Drucker, 2007). With this scenario, company can also able to manage cost regarding handling and storing of resources so that better results can be attained within the context of profits. 

2.Dependability: Furthermore, company need to ensure that dependability of operation is demonstrated effectually among varied individuals so that ultimate objectives can be attained through it. In this regard, cited company can divide task based on activities among varied individuals so that it can be fulfilled in an effectual manner. With the help of it, dependability of whole operations gets diluted and hence each set of work gets completed with required time frame. In addition to it, responsibility of completing the task is also transferred to specific individual within operation through which effectual results get attained (Pitt and Hinks, 2001). With this, cite company is able to leads towards end results along with boosting of its efficiency. 

3.Flexibility: In addition to it, flexibility within operation is another set of performance objectives which supports cited company in conducting its production activity in an effectual manner. In this context, flexibility refers to leverage that can be attained in operation so that requires results can be attained.  For this purpose, company can arrange task by assigning priorities so that it can be completed according to it. With this scenario, cited company is able to boost its efficiency along with attaining varied needs and wants of the customers. 

4.Quality: Quality is one of the key aspects of operation management and hence includes in the performance objectives also. In this regard, quality needs to be maximized within cited business in order to ensure that ultimate needs and wants of the customers can be completed. Also, it aids in boosting the brand image of company by offering required quality products in a desired manner (Gersony, 2008). In this context, cited company can able to manage quality by varied practices such as statistical quality control, bench marking, industry standards and other related. With this required set of quality is ensured from which customers gets satisfied and hence they attracted towards mentioned company.

5.Speed: In addition to above mentioned objectives, speed is another objectives that need to be achieved so that overall efficiency of the firm can be boosted. In this regard, cited company can take support from technology and highly advanced equipment in order to boost the production speed. Through this, company is able to offer quality products in desired time. Also, it supports in getting rid over rivals.

TASK 2

Linear programming and Critical Path Analysis

Linear programming is a mathematical model that supports in recognizing the optimum usage of available resources along with identification of unit that can be produced within available resources (Lopes, p. and et. al., 2006). In this, there are three elements that determine the result, these are variables,   objective function and the constraint. With the helps of constraints, function is developed which aids in determining the results upon which production decisions is made. Function that are developed aims either reducing the cost of operation or boosting the profitability by making required set of products of each category. Based on it, company is able to boost its competency along with attainment of edge. Also, it helps in identifying the limit of production in terms of constraints from which effectual decisions can be made by the cited company. 

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On the other hand, critical path can be defined as a practice of dividing whole project into small task and then arranging each task as it arises in the process (Chen, 2002). In this regard, task are arranged based on time each will consume so that a process diagram can be developed.  With the help of this diagram, identification of path is done which consumes majority of time. Main aim of identifying the critical path is to make efforts so that critical path can be reduced and hence whole projects can be completed in desired manner. With the help of it, crashing in done in  order to reduce the rime frame of critical path. 

Need of Operational Planning and Control in Operation

In every operation, it is required to conduct operational planning so that effectual results can be attained through it (Bassett and et. al., 2005). Considering the same, furniture company also need to conduct the same so that set objectives in achieved. With the help of it, furniture company will be able to manage key resources along with taking crucial decision regarding the production of the company. Moreover, it aids in determining the production system also along with procurement of key resources so that better production activity can be conduct. Additionally, it helps in forecasting the demand so that appropriate decision can be taken with respect to production of furniture. Furthermore, company is able to develop strategy so that objectives can be attained in an effectual manner. Beside this, cost can be managed with the help of planning and controlling which ultimately leads to boosting of company efficiency along with rise in profitability. Moreover, deviation in the operation and production of the furniture can be tracked through controlling which supports in offering standard products to customers (Chen and et. al., 2010). Hence, these are certain reasons for which operational planning and controlling is required within furniture production. Through this, company is able to boost its competency in the marketplace.

Layout for Furniture Company

It is required to determine the layout of the company so that better production and manufacturing activity can be done. In this regard, layout refers to arranging of resources in a systematic manner so that effectual productivity activity is conducted. With this scenario, Furniture Company can procure resources and store in warehouse so that it can be used at the time of production. Afterwards, raw material is moved to marking areas so that it can be cut precisely. Here, efforts are incorporated to reduce the wastage of key resources. Afterwards, resources are shifted to cutting section so that it can be cut and same is fixed in order to shape the finished goods. Here, quality is check and final touch is given by polishing and molding (Wadia, Alivisatos and Kammen, 2009). With the help of it, precise goods is produced from which needs of customers gets fulfilled. Here, operational outcome will be dressing table with drawers and mirrors.

Approaches for Project management and Quality Control (stock)

It is effectual to manage the stock level within the company so that they can able to conduct their production activity in an effectual manner. In this regard, company can apply EOQ (Economic Order Quantity) model in order to procure goods. With the help of it, cost can be managed along with attainment of operational objectives. Furthermore, JIT (Just in Time) can be done in order to manage the stock level (Ellis, 2010). In this, material can be procured at the time of requirement so that production can be run in dressed manner. Also, it helps in saving additional cost of storing goods. In addition to it, company can also use the concept of ordering the goods, as it real to minimum stock level. with the help of it, better management can be done. With this, project management and quality control can be done within the context of stock.

CONCLUSION

With the help of this report, it is articulated that operation management is if key importance through which company is able to attain its objectives in an effectual manner. Also, it supports in managing cost and quality in the products through which effectual results gets attained. In addition to it, company is able to meet with the need of customers by managing their operation and of developing products as per the need of the customers. Furthermore, it supports in conducting optimum utilization of the resources.

References

  • Shim. K. J. and Siegel, G. J., 2009. Operations Management. Barron's Educational Series.
  • Slack, N., Jones, B. A. and Johnston, R., 2013. Operations Management. Pearson Education.
  • Wagen, D. V. L. and Goonetilleke, A., 2007. Hospitality Management: Strategy and Operations. 2nd ed. Pearson Education Australia.
  • Wild, R., 2002. Operations Management. Cengage Learning EMEA.
  • Sadler, I. and Hines, P., 2002. Strategic operations planning process for manufacturers with a supply chain focus: concepts and a meat processing application. Supply Chain Management: An International Journal. 7(4). pp.225 – 241.
  • Hugos, M., 2011. Essentials of Supply Chain Management. 3rd ed. John Wiley & Sons
  • Bagchi, P. and Skjoett, T., 2002. Integration of information technology and organizations in a supply chain. The International Journal of Logistics Management. 14(1). pp.89-108.
  • Berkes, F., 2009. Evolution of co-management: Role of knowledge generation, bridging organizations and social learning. Journal of environmental management. 90(5). pp.1692-1702.
  • Akyildiz, I. F. and et. al., 2008. A survey on spectrum management in cognitive radio networks. Communications Magazine, IEEE. 46(4). pp.40-48.
  • Pinkerton, E., 2011. Co-operative management of local fisheries: new directions for improved management and community development. UBC Press.
  • Haimes, Y. Y., 2005. Risk modeling, assessment, and management (Vol. 40). John Wiley & Sons.
  • Zhixiao, L. and Longzhi, L., 2011. Challenge and strategy of the wastewater treatment process selection from the point of operation management. Water and Wastewater Engineering. 37(11). pp.25-31.
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