The Function of Operations Management
The employee of Trish Rough garden is familiar as seed at inside the factory of Intel, New Mexico. She has given this title unofficially for transferring manufacturing details from single Intel community to another. Her job give the confirmations that Intel factory acts as same as e4arlier existing factory in Oregon. The third factory in Ireland Plesty of Seeds copies the equal techniques from earlier plants. Different plants in Arizona got the benefits of seeds. Now the question is what actual need of seeds is. Seeds do as a part of strategy namely Copy exactly and this has been implemented by Intel to distinguish between factory’s quality and core productivity. As a chip-producing industry, Intel understands very much how it manages the total operating system to make sure its success in the present very tough completive market.
Operation Management – It means the transformation system which transform resources into finish products as well as services.
It depicts this system in an easy way. People, skill, capital, tackle, materials and documentation are considered as inputs of the system which are being converted into goods and services following several processes, work behavior and procedures. Every unit of an organization maintains a specific job to product the product. The managers have to be well-known with the concept of operations management for achieving the goals successfully and efficiently.
Service and Manufacturing:
The Cheesecake factories cum restaurants that produce over two hundred items with a menu believe on ultimate production system. As per the view of a food provider consultant a proficient complex menu is included with an extremely efficient kitchen. Though it is right that every company produce something but this fact is frequently overlooked except some cases, for example in the cases of manufacturing mobile phone, cars, lawnmowers etc.
The manufacturing associations produce only physical products. You can easily understand that the job of the operation management in above kinds of companies is processing the transformation because some raw substances are transformed into some usable physical products. But this concept is not followed by the service organizations that produce basically nonphysical things in the mode of services.
For example a hospital offer the medical aid as well as health concern services which is useful to the persons to develop their personal health, a tourist company provides the transport service and guide that help the people entertainment in their vacation, the military forces offer defense service, a educational organization provides education which help the students to understand the world and many more service organizations are providing their services to give more facilities to the people.
The activities of such service organizations are endless including transformation the inputs keen on outputs. But this transformation is not easily identifiable as like as the manufacturing organization. For an instant it can be said that the inputs of an university administrators are efficient professors, classroom, related journals, books, computers, technology materials as well as other necessary resources which transform into erudite students along with skilled person who will fulfill a vital role to contribute a lot to society.
The purpose of discussing the point of services and management is to understand the U.S. market and even the universal economy which is totally depended upon the development as well as the deal of services. Most part of the developing countries throughout the world dominates the service economy. It has been seen from the survey of an authentic surveyor team that around 77% of total economy activity in the US country is services as well as in most European countries this rate is 73%. However this service division is fewer important in the underdeveloped or undeveloped countries and thus only 33% of economic activity is accounted in Nigeria; this percentage becomes only 37% in Laos and 38% in Vietnam.
Managing Productivity:
A highly developed as well as critical technology is used in a Jetliner and it has around four million big, small and tiny parts which needs very accurately assembled. This job is much more difficult than that of a car workshop jobs. Thus the jetliners demand very skilled technicians, higher technology and perfect infrastructure to achieve the target of production. Though some techniques are copied by few major universal manufacturers like Boeing and Airbus, but the entire techniques are not possible to copy because airliners need higher customization than the performance of car manufacturers. Safety is another aspect which s significantly needed for airline technology because it associated with lots of VIPs’ life risk.
So, the manufacturers of an airline have to be much careful to produce airbus, aeroplan than the attention needed for a car manufacturer. The company Evans Findings in East Providence of Rhode Island produces the petty cutting devices needed for dental aid and it is completely automated which needed no manual labor for production. The goal of this company is to produce the items to the extent that it possible without using labor. However, boosting the production is possible because it is fully automated and there is no need of labor. Presently Evans required boosting the productivity for surviving particularly in respect of low-value competitors in this concept. Evans is different so May manufacturing companies in US.
Evans feels the need for raising productivity for surviving, particularly for low-cost rivals. Hence they twisted to lights-out the production wherein only machine is active for production without any help of manpower. However it is true that most of the companies cannot be able to products all divisions and most of them need the help of manual labor to enhance the productivity and reach the target of production. The highly productivity capabilities of countries can guide to economic development as well as development and hence they can pay a higher wages to their employees without creating any inflation. For personal organizations enhanced productivity offers them a more spirited cost structure as well s the capability to provide more spirited prices.
The U.S. business have already succeeded to improve and increase their efficient that their past performance. For instance the high-tech digital amenities of Latex Foam International in Shelton, the Connecticut engineering experts supervise all the operations of factory. This amenity can enhance the capacity by 50% in a less-space except with about 30% efficient gain. The purchasing office of Pella Corporation has improved the productivity by decreasing the entry times of purchase order from 50% to 86 percent, reducing coupon processing by more or less 27% and abolishing 14 economic systems.
The department of information technology cut e-mail traffic by almost 50% and has applied work design betterments for profound PC consumers like call center consumers. Companies that expect to succeed worldwide are trying for ways to betterment the productivity. A renowned company namely McDonald Corporation have radically compact the time that are taking to cook the French fries of it say sixty five seconds comparing of total 210 seconds of its earlier time and hence they have succeeded to save the time very much. The Toronto based Canadian Majestic Bank of Commerce has succeeded to develop the purchasing function automatically and thus they get achievement to saving millions dollars annually.
Productivity is actually the compound of citizens and operations interchanges. If a manager wants to improve the productivity then he or she must have to concentrate on both of the above. As per the view of Late W. Edwards Deming who was a famous quality expert, the managers excluding workers are the basic source of boosting productivity. His proposal for all managers as well as planning management for the extensive term result but not being satisfied about the quality of product, understand and finding out the source of the problems that are being disturbed the production or stalked from the entire process. They should implement the advance training programs for workers separately on the division of jobs that they are performed.
It is true that the high productivity cannot be possible if the performances of the employees are not satisfied. So, good and purposeful training is mostly needed to make the employs efficient and professional to their job. The intention of good and perfect working of the workers is also needed to boost the production of the company. However, the employer also has to think about the welfare of the employees and they must remember that the employs are the integral part of the company. A combination of goal of both employers and employees can only increase the growth of the company which is an unquestionable issue. For an example all the employees of the Simplex Nails Industrializing in Georgia were an essential part of the organization and they deployed much effort by working round the clock basis. This company got the result instantly because the production of this company increased dramatically. Their inventory was decreased by over fifty percent and the Project had 20% additional floor space. Their orders were sufficient reliable and their all employees were morally improved.
Planned Role of Operations Management:
In the U.S. the modern manufacturing system of Detroit’s automobile factories was originated more than 100 years ago. Their success in manufacturing has been bound from the very beginning of World War II because of positive action taken by manufacturing executives. At that time the executives were succeeded to eliminate the problems and conquered the problems that had been arise to run the company successfully. Those manufacturing executives focused on improving additional several functional areas like marketing, finance and paid some attention to manufacture the products.
Though the U.S. executive neglect the production but the manages in Germany, Japan as well as other countries’ executives have accepted the amenities for developing advanced technology, computers etc. which entirely integrated production operations into strategic planning decisions. In this way the success of competitors lead the manufacturing unit. The U.S. producers succeeded to discover the strategy of producing foreign goods and very soon started to produce better quality but less expensive goods. The U.S. executives noticed by the end of 1970s a real crisis as well as deficiency of responses.
They invested a huge amount of money to improve the technology of production, the corporate authority and numbers of production executives. They also invested to amalgamate the existing and future production needs into the total strategic plan of the organization. Presently the successful organization’s management plays a vital role as a part of entire strategy of the organization to setup as well as properly maintaining worldwide leadership. At present the strategic plan that played by the successful operations management are clearly noticed in other several organizations who want to switch their managing and operation strategy towards a value chain goal.
Links of Previous Main Topic:-
- Managing teams
- Understanding individual behavior
- Managers and communication
- What is motivation
- Managers as leaders
- Managing operations
- The role of operations management
Links of Next Fundamentals of Management Topics:-
- What is value chain management and why is it important
- Managing operations using value chain management
- Current issues in managing operations
- Case application 1 stirring thing up
- Case application 2 smooth ride
- Chapter nineteen summary by learning outcomes
- Preparing for my career managing operations
- Managing operations
