Chapter Nineteen Summary by Learning Outcomes

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Definition of operation management

Operation Management is actually ideal transformation processes that transform the resources into finish products and/or services.

The manufacturing companies produce physical goods and service organizations create the nonphysical outputs as the shape of services.

Efficiency is the result of efforts of both employees and operation variables. The managers should find out the ideal ways to integrate people successfully in to the entire operations procedure.

Organization’s operation manager must play the vital role as the fraction of their entire strategy to perform successfully and achieve the goal.

Describe the nature as well as principle of value chain management

The value chain management is actually the order of succession of organization performance which inserts value at every step of work strategy from raw products collection to ending of producing finish goods. The value chain organization is the system that manages the role of activities as well as information throughout the product chain.

The aim of value chain organization is to develop a perfect value chain policy that fulfill and even exceeds the need and expectation of customers.

Value Chain offers 4(four) key benefits:

  • Improve procurement
  • Advanced logistics
  • Better product development
  • Increased consumers order management.

How the value chain administration is performed?

6 major needs for winning value chain management which is:

  • Coordination and teamwork
  • Proper investment in technology
  • Ideal organiza5ional processes
  • Leadership
  • Human or employees resources
  • Organizational culture as well as attitudes.

The barriers to value chain administration involved-

  • Organizational blockades which refers refusal to share the necessary information, unwillingness to share the position quo or other so many security matters
  • Unsupportive cultural attitudes
  • Deficiency of needed capabilities
  • Employees reluctant or unwillingness to do the job.

A brief discussion on current matters in managing systems:

Most of the companies are very much eager to find out the perfect ways to tie together technology for the improvement their process management by massive collaboration as well as cost control. The ISO 9000 is a sequence of global quality organization standards that established the unique strategies for processing to make sure that the produced materials conform to clients needs. Six Sigma is also an excellence standard that set-up an objective of merely 3.4 defects in each million components or process.

Mass customization offers consumers with a material where, when and how the customer want the same. It needs flexible production techniques and non-stop customer chat. The lean organization is the thing that appreciates the need of customers, locates the consumer value by examining all performances needed to produce the products and lastly optimizes the total procedure from the perspective of consumer.

Chapter Nineteen Summary by Learning Outcomes 5


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