Operational management

Object Required

Intense research in the relevant industry by talking to workers and customers.

Principle

How can a business thrive using operational management strategies?

Theory

Operational management is one of the most important departments of the organization which plays an important role in producing goods and services for the customers. It refers to the strategies used in business practices to create the highest level of efficiency in an organization. Operational management involves ability to convert materials and labor into goods and services in the most efficient way possible that maximizes profit. It involves specific responsibilities such as ensuring that the business operates efficiently along with using the least amount of resources necessary to meet customer’s requirements to the highest standard that is economically possible and managing the process to convert raw materials, labor, and energy to goods and services. The businesses can be thriving by implementing the principles of operations management theory. The example could be taken that of the reality show bar rescue in which the deteriorating condition of bar and restaurant industry was shown by doing intensive research in this industry. In that research it was found that owners were losing profits due to health and sanitary issues along with wasting alcohol due to over-pouring drinks, serving sub-par food and mismanaging relationships with their supply chain. Due to all this owners were frustrated, profits were deteriorating, workers were exasperated and customers were dissatisfied. After a lot of thinking and pondering over the issue some decisions were taken for the betterment of this industry which includes rearranging of staff, making changes in menu along with changing marketing efforts, initiating new policies and procedures. This all creates a holistic system to initiate efficiencies and process improvements to reduce waste and enhance operational activities. This course of action is incorporating by most of the businesses and many of them are able to rebound and prosper. Operation management takes four theories into consideration which are business process redesign, reconfigurable manufacturing systems, six sigma and lean manufacturing. All these theories have the following objectives:

·      The objective is to produce the right kind of goods and services that satisfy customer’s needs which is known as effectiveness objective.

·      Under the efficiency objective it aims at maximizing output of goods and services with minimum resource inputs.

·      Capacity utilization objective of operational management aims at maximizing utilization of manpower, machines and etc.

·      In its other objectives, it aims at minimizing cost of producing goods or rendering a service which is known as cost objective along with ensuring that goods and services produced confirm to pre-set quality specifications.

The resources are generally consisting of people, material, technology and information but it may go wider than this as it is the basic business function that responsible to planning, organizing, coordinating, and controlling the resources needed to produce a company’s products and services. The key elements of the operation management includes product selection and design, process selection and planning, facilities layout and materials and handling, capacity planning, quality assurance, production planning and control, work study and job design, maintenance and replacement, cost reduction and cost control, inventory control and etc.So, basically better results could be obtained by using the staff appropriately through effective communication and motivating the team along with utilizing operational management strategies. All aspects of production workflow should also be evaluated to find the waste such as excess motion, excess inventory and overproduction so that it could be rectified in proper order to get the desired results. Operational management starts with the customer and values all process or action including manufacturing or any other for which a customer will pay to provide them full satisfaction and enhance the growth of industry.

Conclusion

The current research report has concluded that operation management of the company provides assistance in attaining all objectives such as cost and time minimization, maintenance of speed, quality improvement and profit maximization. The four theories of operational management could be better use to enhance the quality and ensure maximum production by using different aspects in a very cost effective way. The different approaches can be used to reach on the right conclusion and to take further steps. Operational management supervise that each and every task is completed on specific time and cost. Operation management use one of the best paths known as critical path analysis for identifying the lengthy path for completing the project with minimum duration or accomplishment time. It provides assistance in managing the entire project and different activities in effective manner. With the use of operational management tools, estimation for future demand of goods and services becomes easy. It also helps in identifying the needs and requirements of customers as well as future market trends of the organization. It is also helpful for estimating volume of sales, inventory and purchase of goods and services. It focuses on speed, quality, dependability and flexibility. It focuses on quality management of the production processes of the organization.

Published Date

05 Sep, 2018