Group project (costco) - Essay Example

This aspect includes the function of providing a particular product or a service. The key operations management issues include designing, planning and management of the system. Most of the problems associated with operations management at Costco include setting of the plan layout and structure, methods used in project management, selection and replacement of equipment. Specific operations issues at Costco involve equipment maintenance policies, traffic and material handling, quality control and inspection, inventory management and process scheduling.

Some of these problems are associated with system design, system management and planning of the system Technology plays an important role in streamlining an organization’s operations. It increases efficiency, productivity, reduces energy, manufacturing and labor costs, enhances communication, and enables smooth integration of day-to-day activities. Costco has not been left out in using technology in its business operations. The company manages more than 300 warehouses that house brand name merchandise at low costs.

In order for Costco to offer high quality products at cheap prices, it had to establish faster communication with thousands of vendors at any given moment. The company could no more tolerate long delays when trying to access common documents such as invoices, debit or credit memos or purchase orders. Prompt access to transaction documents was not available. Costco also stored and processed large volumes of paperwork, which needed to be accessed easily. All these hardships could only be solved with the appropriate technology.

The initial solution was offered by Image Source executive team in 1992 (Collier & Evans, 2012). Costco also uses Oracle Imaging and Process Management software for file storage and retrieval. The company has also utilized technology for scanning images and barcode indexing processes. Initially, 50 Costco users scanned