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A report on application of technology in Operations Management - Essay Example

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A report on application of technology in Operations Management Table of contents 1. Introduction 3 2. Operations management and strategic objectives 3 3. Practical applications of IT for objective achievement 4 3.1 Speed 5 3.2 Flexibility 6 3.3 Dependability 7 3.4 Quality 9 3.5 Cost 10 4…
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A report on application of technology in Operations Management
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Download file to see previous pages This forms the revenue-generating function of any business and thus based on five critical strategies such as speed, flexibility, dependability, quality and cost. All operations activities are carried out based on these strategies. In order to continuously enhance effectiveness of these strategies, various technology services are employed in operations management through advanced information technology and information service (IT/IS) systems. This report evaluates application of IT/IS in various operations activities and their impact on its core strategies. 2. Operations management and strategic objectives: The entire operations/production process is accomplished using resources such as money, raw material, equipment, manpower and finance. These inputs are processed in specific manner through a sequence of preplanned activities in order to produce desired outputs, which can be in the form of completed parts, products, chemicals, service to customers, completed paperwork etc. Operations strategy controls the strategic position of the firm, and is aligned to the overall corporate strategy. This alignment is to ensure all policies and plans reinforce organizational effectiveness and aid in optimum production of goods and services. For example, Toyota’s operations strategy includes designing, assembling and marketing the finished products, but procures the rest from other suppliers (Feist et al, 1999). This strategy is aligned to its corporate strategy of producing defect-free products, in less time and occupy largest market share. In general, operations strategy involves decisions related to design of the process of production or service providing as well as facilities and/or infrastructure needed to support the process. To achieve such tough and complicated objectives, organizations make optimum usage of advanced information and technological services. The IT services form a part of their tactical planning approaches, which also include capital, human resources, technology, facilities; staffing and scheduling methodologies to achieve target productions; sales and service operations; inventory management of supplies and delivered goods etc. In addition, short-term operations planning activities such as capacity, quality control, inventory, manpower etc also require IT services for effective operations. 3. Practical applications of IT for objective achievement: The three major components of corporate strategy in any business include operations effectiveness, customer management and production process and innovation (Chase 2006). Information Technology (IT) provides strong platform to convert, store, protect, process, transfer and recover information related to operations, customer and production processes. IT and its systems are used in all operations management processes such as capacity planning, inventory control and management, quality control, human resources management, etc. All business processes such as taking orders from customers, handling returns, manufacturing, marketing, delivery of end products also require IT systems. IT finds effective application in all customer management activities such as evaluation of customer feedback, customer satisfaction, customer expectations etc. Application of IT for innovation in operations and production management is mainly through research and development activities. According to Slack et al. (2004) the main objectives of operations manage ...Download file to see next pagesRead More
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