Importance of Operation Management in Organisation - Assignment Example

OPERATION MANAGEMENT IN BUSINESS Name Paper Date Task One Importance of Operation Management in Organisation Operation management has been used in many organisations as part of the departmental obligation to achieve set goal. Operation management has been defined as a role that deals with processes, management and design of products, supply chain and services. It maintains the acquisition, utilization and development of resources that an organization will need to satisfy the wants of its clients (Slack, 2008). Operation management ranges from strategic to tactical operational levels in an organization. Operation management plays an important role in an organization since it is a measure of efficiency through improvement in the level of productivity thus improving the organizations financial status. It studies the function of product hence coming up with best methods improving productivity in the organization. It also helps the organization to meet client’s competitive priorities through the total quality approach available in operation management. Therefore as the production manager in the organization, this process will assist in coming up with effective and efficient production processes in the organization (Slack, 2008). Adoption of the operation management techniques in the organization will results in realising both the financial status and client’s satisfaction of the products made by the PRAZ Company. Operation functions in an organisation Operation functions involve bringing together raw materials with the use of production processes to come up with a final product that clients will be satisfied with. For example in the production company, raw wheat is used in manufacturing of biscuits. The benefits of the operation function are wide –range to improve efficient and effective management in the organization (Slack, 2008). Operation function such as identifying priorities will enhance continuous improvement in the organizations operation department. Planning and controlling is another function that occurs in operation management to facilitate the smooth processes of production to obtain the best quality of the final product the organization is manufacturing. The PRAZ Company should develop operation strategy, design the operations services, products and processes, understanding strategic objective and also improving the performance of operation. Observing all these operation functions in the production industry will ensure companies enjoy sustainable in all activities (Slack, 2008). As an operations manager in PRAZ Company, all these operation functions should be considered from developing strategy to improving operations services in the department to come up with the effective method in producing a competitive product that will satisfy many clients in the world. Process model in operation management The process model in operation management has provided a clear role in ensuring all the organizational goals are met in the production process. The process model depicts the transformation that includes changing physical characteristics of clients or materials, changing background information of the clients and also transforming the psychological state of clients (Slack, 2008). Therefore the process model includes transforming raw materials e.g. wheat to undergo through the operation process to come up with the final product: the biscuit. The process model will involve the management, employees and the raw materials which are the input in the operation process. Final product will be obtained in the organization which marks the last level in the process model; this is the output level (Slack, 2008). As an operation manager, the process model will show the smooth and simultaneously processes of operation in the PRAZ Company. Task Two Importance of Three Es in organisation The Three Es refers to economy, equity and environment. The use of these three Es facilitates a lot in the organisation growth and development (Tarantino, 2009). This ensures that the organization grows to sustainability in the long run. Economic prosperity suggests a lot in the determination on how an organisation will prosper. A bad economy is not a better time in conducting business activities since the business will accrue losses due to the failing economy. Economy is a measure of how successful a business we go on in the market. Equity on the hand shows the general principle behind the creation of similar components that will attract more clients without discrimination (Tarantino, 2009). It provides establishment of equal products like coming up with the biscuits company. Lastly, environment reveal the perfect determinant in located the business market. A good location provides a successful environment to conduct organisational objects. Therefore the three Es in an organisation assist the managers in determining all the favourable factors that can lead a business to prosper. With good consideration to both the economical, environmental and equity factors the business will realize its objective and sustainability in the long run (Tarantino, 2009). Impact of tension between cost minimization and quality maximization The tension behind cost minimization and quality maximization in a production organization is that many clients tend to enjoy less costly goods of which they are mostly poor quality products. The irony behind cost minimization and quality maximization is that once the quality is maximized the price level of the products will be expected to be higher and once maximization of quality of a product is done it will be hard for an organization to offer such products on lower costs but rather be the expensive products (Soković, 2009). Cost minimizations will results to more customers to have purchasing power of such products hence obtaining a lot of customer globally. On quality maximization will boost the organisation reputation in producing best quality products in the world. Wealthy citizens will be able to afford these products compared to the less fortunate citizens. Therefore, the introduction of this concept will bring the gap between poor and the wealthy since lower costs implies a notion to poor quality while maximized quality in products are always high price due to the complex nature of production (Soković, 2009). Significance of five performance objectives The five performance objectives behind operation management that underpin to organisations are flexibility, dependability, speed, costs and quality. These performance objectives play an important role in operation management process as they provide the guideline in arriving at the goal of the production (Soković, 2009). Through the use of unifying theory and the integrating practises the quality shows how the product meets its intended function and also it depicts the products durability. Flexibility is applied in the operation management when organisation have to change adjust to recommended ways to meet its organisational goal. Another performance objective is speed where it shows how fast the organization can provide its services to customers. Dependability and costs go hand in hand where dependability refers to the steadiness and consistency in provision of products and services to customers while costs shows the price figure level of products. All of these performance objectives provide a guideline for many organizations to achieve their goals in providing services and products to customers (Tarantino, 2009). This will assist organisation to offer effective services hence become sustainable in the business practises. Task Three How linear programming add value to production process The use of linear programming assists in solving out problems not only in production but also in commodity pricing and transportation. Linear programming is the technique used for optimizing a linear function subject to a linear constraint especially in production (Vanderbei, 2008). In production these constraints will be in form of inequalities qualities. In using linear programming, two or more products are obtained hence a decision need to be made in which it will support profit maximization in the organization. The constraints in the linear programming will specify the amount of time required by the machine not to exceed the available amount in maximizing profits in the organization (Butkovic, 2009). Therefore the use of linear programming in the production process of an organisation will ensure profit maximization by obtaining correct variables for production. It will also enable organisation to solve the inequalities of production procedure through provision of sets of constraints that are applied in solving errors in the production process (Vanderbei, 2008). Operation managers should adopt these models in the operation management in the organizations. Critical path analysis and network planning Critical path analysis is the logical sequence of events necessary for a successful project in a manner that it will provide efficient and sustainable route in which it uses the aid in time management, data assessing progresses and giving the program planner the ultimate consideration to decision making (Chow, 2011, p. 22). Many organisations tend to rely on critical path analysis (CPA) due to its useful management and planning tools such as thoroughly identification of activities requiring resources and time during the planning process, logical sequences of activities are made and continuous evaluation of planning and implementation process (Clinton, 2012, p.42). Therefore CPA provides a visual picture through a development of a model network that will display all the planning functions and research to tie together. The use of network planning forecasts on how new network will operate and also the economic information concerning costs and technical details of the network capabilities of the organisations. The network planning will involve topological design, network synthesis and network realization (Chow, 2011, p. 27). The use of critical path analysis and network planning in an organisation will enhance an effective and sustainable way in making decision in regard to routing system of planning both time and networking capabilities. The need for operation planning and control All organisations in the world require operational planning and controlling in order to meet their objective in provision of services and products to customers (Chow, 2011, p. 45). In the biscuits industry, planning and controlling functions are a key role in realising an effective process. Operational planning and controlling in production companies assists in scheduling and sequencing of activities to take place simultaneously (Tarantino, 2009). Scheduling of activities in the organisation will provide a systematic way thus ensuring all activities are taking place at the right time in the required process. Also operational controlling and planning supports loading, controlling and monitoring of all activities to ensure all transaction are taking place in the right way and manner (Tarantino, 2009). Therefore, organisation should observe operational planning and controlling to impact effectively in their organizational activities. Task Four Operational outcomes of an organisation Operational outcomes in organisation may not differ strongly since the objectives of most organizations are seemingly the same. Operational outcomes such as satisfaction with services, service or office utilization rates, productivity, teamwork, professional competency and communication enable an organisation to achieve the productivity levels (Chow, 2011, p. 53). Teamwork in an organisation is highly recommended since the production processes require various step thus need in working together. More so depending on the years one serves in production, experience is gained to the employees hence increasing the professional competency as a result operational achieved from its outcome (Chow, 2011, p. 53). Operational brings about productivity in terms of quality and quantity improvement levels in the organisation. New measures are put in place so as to meet the satisfaction levels of employees varying from cost, quality and quantity levels of product. All these productivity levels, teamwork and competency among others are the sets operational outcomes attributed to a business organization offering services and products to customers (Chow, 2011, p. 53). Operation managers should observe keenly on the operational inputs as operational outcomes depend on the inputs in the organization. Network plan resulting critical path Adopting the use of network plan in organizations plays an important role in management practises. In order to find the critical path we use the network diagrams method available through the use of network plan (Clinton, 2012, p. 42). The critical path is essential in planning and controlling of process to determine how long they will take place before they fully complete the production processes. It helps in determining the start date of the operational activities of which one cannot start unless the previous activity has elapsed. It works in a systematic and continuous process. Once all the activities are placed in the network diagram and worked out, you can now establish to start using the critical path method to find the best optimal way to finish the in-process tasks. The calculations will also determine the next date the process needs to be completed in for the next operation to take place. Therefore the use of this type of network plan through network diagrams will ensure the critical plan is achieved in the organization (Clinton, 2012, p. 42). Operational manager should adopt network plans in their operational process to obtain easy settling of decisions. Quality management techniques to improve operations Quality management techniques plays important role in operational organisations. Quality management techniques such as the use of six stigma and benchmarking enables organization in developing an understanding of critical issues that are generated in the business and also the approaches involved in the quality management of products, and the knowledge involved behind the quality management techniques (Slack, 2008). In improving the customer satisfaction, quality management program should consider personal understanding gains of the product features as an important role to customers. According to Chow, the quality management techniques are employed in organization due to their relevant in customer satisfaction, reduction in waste capacity, enhancing productivity, increasing revenues and improving product performance (2011, p. 55). The use of six stigma aims in meeting the satisfaction level of customers. It also enhances productivity level and improving the product performance in the market (Slack, 2008). Quality management techniques are mostly used in organization to support and improve operation processes in an organisation. References Butkovic, P., & Aminu, A. (2009). Introduction to max-linear programming. IMA Journal of Management Mathematics. 20, 233-249. Chow, J. Y., 2011, A network option portfolio management framework for adaptive transportation planning, Transportation research journal, vol. 5, no. 6, pp. 20-64. Clinton, D.G., 2012, Critical Event Path Analysis, Journal of network analysis, vol. 12 no. 2 pp. 41-54. Slack, Nigel., (2008). Operations and process management: principles and practice for strategic impact. Harlow, England, Prentice Hall/Financial Times. Soković, M. (2009). Basic quality tools in continuous improvement process. Strojniški Vestnik. 5, 333-341. Tarantino, A., and Cernauskas, D. (2009). Risk management in finance six sigma and other next-generation techniques. Hoboken, N.J., Wiley. Vanderbei, R. J., (2008). Linear programming: foundations and extensions. New York, Springer. Read More