Operation management - Essay Example

?Operation Management Operation management is the careful managing of the processes of producing products and services and distributing them in the market. This process includes all the activities like product designing, product creation, distribution of products etc. The definition of the operation management is, “Operations management refers to the administration of business practices to create the highest level of efficiency possible within an organization. Operation management is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization” (Operations Management 2011). The task of operation management team is to convert the inputs into the output in the most beneficial way. They are the real causes for the net operating profit of the organizations. Operation management team has to take care of all the processes starting from the acquisition of resources to delivering the products or services to the end user. They have to come across the tactical and strategic level of the operations. The strategic level includes deciding the structure of service networks, determining the size and location of manufacturing plants and deciding the technology of the supply chain etc. The tactical level issues are project management, plant layout, selection of equipments etc. Now a day’s, operations management is employing more and more information technology to get the work done more accurately and more effectively. This is being done to improve the organization’s respond to the five objectives of operations: speed, flexibility, dependability, quality and cost. These are the core objectives of the operation management. The think tanks of the organization are up to date about the information technologies that can be applied to the each and every process of the operation management. The field of technology and operations management is concerned with the design, management and improvement of the processes and operating systems. The global market experiences a rapid change of technology and the companies face big challenges to compete with the world class standards in production and delivery of products and services. “The field of Operations Management has been changing dramatically due to the emergence of a truly global economy, significant advances in information and process technology, and the continued growth of services. The Technology and Operations Management Area (TOM) focuses on value creation on a global scale through innovative product and process design, project management as well as on value capture through effective supply chain management” (Technology and Operations Management 2011). The theory of constraints (TOC) is much successful application of information technology in operations management. The TOC starts with through-put driven business policy, seven step resource management methodology through the cost/utilization capital investment technology and ends with drum-buffer-rope production activity procedure. Total quality management (TQM), just in time (JIT) and the theory of constraints are well absorbed in the field of operations management. Some of the information systems used in production and operations management are given below: Inventory system: Inventory system uses techniques like just in time, ABC, first in first out, last in last out, etc. Such information is then used for reorder purposes. Stub control (used by retailers) enables the manager to retain a portion of the price ticket when the item is sold. The manager can then use it to put record about the item that was sold. Production System: The manufacturing system often produces the standardized products in large volume. The plant and machinery will have a limited capacity. The system facilitates with fixed costs, variable costs, labor costs and material costs. While producing the products, the net value and the economic value are forecasted and added to the product. Service System: The service system is more complicated as the service is not physically stored. Services are produced and consumed at the presence of customer. Hospitals, hotels and other service organizations should manage consciously to handle the highly variable demands. The information system facilitates to tackle this situation by providing accurate information. Project System: Project system is maintaining the plant, machinery, men and materials on the project site. The cost can be calculated and allocated accurately with the help of project system. Once the project is completed, all the resources are removed from the site. Computer Aided Design and Manufacturing is one of the biggest applications of information technology in the production and operation management. “Computer-aided design (CAD) involves creating computer models defined by geometrical parameters. These models typically appear on a computer monitor as a three-dimensional representation of a part or a system of parts, which can be readily altered by changing relevant parameters. CAD systems enable designers to view objects under a wide variety of representations and to test these objects by simulating real-world conditions” (Computer-Aided Design (CAD) and Computer-Aided Manufacturing (CAM) 2012). Operation management plays a very vital role in organizations and the five objectives of operation management include speed, flexibility, dependability, quality and cost. This report aims to provide an analysis of the technology available in different areas of operations in an organization and how they are related in helping the organization in achieving its aims and objectives. The most important matter in any business is to make the availability of the product or service of the firm to its end user. The operations department of a business is very important and this is mainly because it is the department which caters to the day to day operations of the business. The operation department manages the day to day operations of the department and this department does all the succeeding activities in accordance to the sales, production and finance departments. It provides services and supports activities in the organization in such a manner that enables the organization to achieve its goals and objectives. IT helps in data management and data processing in order to conduct smooth operations. IT facilitates in storing of documents and also provides relevant support service system for easy and hassle free conduction of its operations. Dependability and quality are two important objectives of operation department which are facilitated by the IT systems. IT system makes the business operations more dependable and of high quality. IT can be adopted in organizations in all the departments like the production, sales, accounts etc. The dependability factor is further enhanced because it is through IT only that a firm can conduct its operations smoothly like the operation of a smooth supply chain, the operation of hassle free sales and maintenance of accurate accounts. With the use of IT in Supply chain management, the sharing of information between the suppliers, firm and the customers is faster and rapid and is more accurate. Software’s can be installed in firms and provisions for buying, selling, production and finance could be adopted in single software which should have a centralized control and this will benefit the firm in its operations. The dependability of an organization on IT is always been questioned throughout. The reason can be explained as in the beginning it was in the hands of the organization whether or not to adopt IT or to which business units it should be adopted. But with the time and the utility of IT touching great heights, now the scene is that IT has a much stronger influence on organizations rather than organizations influencing IT procedures. The dependability is such high that it can be least measured. While the benefits of IT are high in number yet there are some cautions which organizations need to adopt, else they will have to pay high costs for their over dependence on IT. The firm needs to adopt the right mind set before increasing their dependability on IT for its total operations. The most important reason for this is “because information technology is at once exalted and feared” (Ford & Crowther 2003, p. 187). IT, beyond doubts increases the quality of business. The operation management in a firm constitutes the management of its business operations which includes production, sales, distribution, finance etc. IT increases the quality of business because it is speedy in nature and is inherent with superb powers like noticing even the minor mistakes which escapes from the human eyes. This is where IT scores in conducting its operations. IT requires heavy investments and its main requirement is to improve the quality of service delivery. It is through information technology and other technological advancements that systems like toll free operations, teller services, and online purchasing systems have so highly developed. The above stated are some of the main advantages in delivering high quality and instant service to the customers which improves the quality of service that is delivered to customers. Quality of business is measured by the speed and the accuracy by which the service is delivered. This can be achieved by adopting the IT in the operations management of the firm. “IT improves quality which in turn enhances output” (Mukhopadhyay et al. 1997, p. 1645). IT improves the efficiency with which business operations are handled in an organization and this is mainly achieved by speedy and accurate delivery of service. Different technologies are used in increasing the service delivery to the customers. Some of the most important are the technology in built services like the ATM services, other teller machines, finance control IT systems, supply management operations etc. Technology is an essential component today in the operation department and its efficiency cannot be sidelined. Operation management is nowadays employing more and more Information technology. In general, this is being done to develop how organizations, react to the five objectives of operations: dependability, cost, speed, flexibility and quality. Technology available in different areas of operation helps to provide historical, contemporary and analytical views of business functions. Operation management plays a significant role to achieve the overall objective of the company. If the companies are employing IT for its operations, it will help to achieve the goal of the company in successful way. From an organizational point of view, the information period is in complete swing and so both public and private organizations are experiencing an enlarge use of various Information technologies (ITs) in its operational activates. Realistically, it has turned out to be nearly not possible for companies in different areas of operation to work without the use of one or more Information technologies. Since their inception, ITs have been held up by numerous citizens as the solution for various issues of the organizations, and in several cases IT is offering accurate solution to poor performance competence of an organization in the course of the miracle of computerization. Operation management is one of the parts of management concerned with supervision, planning, and redesigning of various operational activities of the business in the manufacture of goods and/or services. It occupies the duty of guaranteeing that business operations are well-organized in terms of using as a small number of resources as required, and successful in terms of meeting needs of the consumer. It is mainly concerned with organizing all the process that converts inputs into the form of output. It is the area concerned with organizing and managing the physical and technological functions of a company, particularly those regarding enlargement, creation, and manufacturing. Various parts of the operation management of the company include supply chain, finance interface, marketing interface, operational strategy, service operations and process design and improvements. If the companies are employing ITs in these parts, it will help the company to perform all the operational activities in an organized way, so as this will help to achieve organizational goals. The function of operation management is to guarantee that the whole production process runs as efficiently and professionally as possible, organizing resources, managing dealers and making sure that all these processes are efficient and meet consumer requirements. “All business organizations are concerned with how they will survive and prosper in the future. A business strategy is often thought of as a plan or set of intentions that will set the long-term direction of the actions that are needed to ensure future organizational success” (Chapter 2: Operations, Strategy and Operations Strategy 2007, p. 1). Operation department provides services that support activities in the organization in such a manner that facilitates the organization to achieve its goals and objectives. Finding of the Study: 1. Information Technology related Operation Management allow the groundwork to more successfully and efficiently gather, document and circulate information that relates to this discipline. 2. It helps to get the best practices that have been composed, accepted, and published for the advantage of IT experts, irrespective of their specific company or line of business. 3. It helps to achieve the objective of the company successfully. 4. It helps in speedy and accurate delivery of service of the company. Conclusion: Information technology has turn out to be a foundation in our society. It has a great impact on almost all functions of our lives. And also have really turned out to be an information and technology based society. The requirement for effectual implementation of IT has never been more significant. The capacity to work in this environment can spell the dissimilarity among a well-organized and successful organization and one that repeatedly falls behind or fights in ineffective way to keep them up. This report is to provide a study of the technology available in various areas of operation and also to provide comments on how they are achieving the aims of the companies that are employing IT. The area of Operations Management has been altering considerably due to the appearance of a truly worldwide economy, momentous advances in information and process technology, and the sustained development of services. The Technology and Operations Management Area (TOM) give attention on value creation on an international scale in the course of modern product and design of the process, project management in addition is to capture value in the course of successful supply chain management. The operations department organizes the day to day operations of the company and this department does the every succeeding activity in accordance to the sales, production and finance departments. Reference List Chapter 2: Operations, Strategy and Operations Strategy. 2007. Available at [Accessed on 18 January, 2012]. Computer-Aided Design (CAD) and Computer-Aided Manufacturing (CAM). 2012. eNotes.com. [Online] Available at [Accessed on 21 January, 2012]. Ford, H & Crowther, S 2003. Operations Management. Routledge. USA. Available at [Accessed on 18 January, 2012]. Mukhopadhyay et al. 1997. Information Technology Impact on Process Output and Quality. Management Science. Vol. 45. Available at [Accessed on 20 January, 2012]. Operations Management. 2011. Investopedia. [Online] Available at [Accessed on 21 January, 2012]. Technology and Operations Management. 2011. INSEAD: The Business School for the World. [Online] Available at [Accessed on 18 January, 2012]. Read More