We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Operations Management - Essay Example

Comments (1) Cite this document
Since all the relevant information about Return on sales is mentioned in the question, the data has been used to derive the relevant cost and income amount so that desired Return on Sales i.e. 10% and 15% can be calculated…
Download full paperFile format: .doc, available for editing
Polish This Essay95.3% of users find it useful
Operations Management
Read TextPreview

Extract of sample
"Operations Management"

Download file to see previous pages Question 1 (b):
When profit calculation is being done, it is important to take account of fixed costs especially when using TOC based initiatives. The concept of TOC relies on three most important elements i.e. Inventory, Operating expenses and Throughput (Choe and Herman, 2004 and Herroelen and Leus, 2005); all these three aspects need to be carefully monitored so that the production processes are enhanced and the output level of the organization increases. Throughput is described as sales revenue minus total variable costs; Inventory is defined as the amount of total money invested in the business which can be or is to be sold; and Operating expense is the amount of all non-variable costs that are associated in converting inventory into throughput.
It is evident from the explanation of the three important elements of TOC based initiative that both types of costs are important when calculating the profit. The real profit amount is that one which is retained by the business after it covers its fixed and variable costs. From the table given in Question 1(a), it can be concluded that Fixed costs are important when calculating Net Income as it is the profit that is left when all the expenses are paid off by the company. The main fixed costs for any manufacturing concern like Hi-Fidelity Ltd. is the machinery that is used in the production processes and its cost needs to keep at a minimal level. Fixed cost constitute majority share of the cost and that is why it needs to be kept constant; if not constant, then it should not increase at an accelerating rate as well. Hence, in TOC based initiative, Fixed costs are the crucial part of profit calculation as they help in determining the Return on Sales so that the company can decide about the increase in sales required so that it is able to earn high Net Income in the long-run. Question 1 (c): It has been revealed by the studies of Bhardwaj, Gupta and Kanda (2010) and Godratt Institute (2009b) that the organizations that implement the concept of TOC require less time for initial improvement phase than that required in both lean management and six sigma methods. TOC concept allows the organizations to focus on one area in one time whereas the other continuous improvement processes require the professionals to keep on monitoring the systems to identify issues in other areas and they necessitate the need of continuous up gradation of the systems as well. The major benefit gained from the application of TOC based initiatives is that they manage the variations effectively rather than reduce them which differentiates TOC from lean and six sigma. TOC helps the organizations in saving time and managing the complete execution process properly. Since the main aim of the concept is to identify the constraint that is creating problem in the company’s production process, the next step is to resolve it so that the variation can be managed. The best aspect of TOC concept is that it follows a systematic approach which can be described as follows: 1. Identifying the starting conditions of the ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Operations Management Essay Example | Topics and Well Written Essays - 5000 words”, n.d.)
Operations Management Essay Example | Topics and Well Written Essays - 5000 words. Retrieved from https://studentshare.org/business/1400228-operations-management
(Operations Management Essay Example | Topics and Well Written Essays - 5000 Words)
Operations Management Essay Example | Topics and Well Written Essays - 5000 Words. https://studentshare.org/business/1400228-operations-management.
“Operations Management Essay Example | Topics and Well Written Essays - 5000 Words”, n.d. https://studentshare.org/business/1400228-operations-management.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
gulgowskikyle added comment 3 months ago
Student rated this paper as
I never thought 5000 words essay could be written in such a free manner. I loved the style of this essay. Will definitely use it for my own work!
Operations Management
One such approach is known as “core-ring strategy” where the workforce is reduced to a small number of full-time employees to maintain the core business operations. Surrounding this core group is an outer ring of non-standard workers who are hired only when necessary and discharged when not needed (Levine, 2002).
5 Pages(1250 words)Essay
Operations Management
Difficult circumstances in a project refer to situations that are not part of the plans and have not been part of the normal course of events. These situations need outright decisions from the operations manager and from the people in the field, or those who are in direct contact with customers.
6 Pages(1500 words)Essay
Operations Management
This research is being carried out to define operations management and to investigate the following: scope of responsibilities of an operations manager; operations management reconstructed; planning and control techniques; scope of planning and control; planning and control in a manufacturing concern and in a service business.
8 Pages(2000 words)Essay
Operations Management
Activities in an organization can be divided into operations and projects. Whilst operations are ongoing, repetitive and continuous activities in any organization for example finance, accounting, and production. As a consequence, all the efforts of the organization are channeled towards maintenance of operations so as to maintain quality and remain competitive in a globalised environment (Tandoc, 2010:78).
11 Pages(2750 words)Essay
Operations Management
According to Nigel, Chambers and Johnston (2010, p. 1), all organization; be it small or large produce some services and product either for profit or not for profit. Consequently all these organizations require operations management which is concerned with creating products and services.
8 Pages(2000 words)Essay
Operations Management
UAE is less developed nations as compared to European nations and the implementation of the OM makes the overall organizational management and handling in the business easier.
10 Pages(2500 words)Essay
Operations Management
It also involves value adding in the process of conversion from input to the output (Brown 2005). In today’s competitive environment, especially in the retail sector,
12 Pages(3000 words)Essay
Operations management
It is recommended that the quality of food prepared in the kitchen be improved further so as to enhance customer satisfaction. The kitchens should also try to achieve a higher Michelin rating for the
10 Pages(2500 words)Essay
Operations Management
Service operation management is very different from manufacturing operations management. Service operations management entails fulfilling the end user’s needs and creating a suitable environment for the workers so that they can produce the required specifications of the use. Manufacturing operations management entails producing the required commodity required by the end user.
8 Pages(2000 words)Essay
Operations Management
The report is trying to explore the operations of the company in terms of capacity management. The aim of exploring capacity management lies in the knowledge that the acquisition of the wrong
8 Pages(2000 words)Essay
Let us find you another Essay on topic Operations Management for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us