FAA inspections on Boeing 737's and how it relates to Operations Management - Research Paper Example

It provides employment opportunities to over 170,000 individuals throughout 70 nations. It is also regarded as one of the oldest manufacturers of commercial airlines having its root from the last 40 years. It also manufacturers missiles, defense systems and satellites and is a major service provider to NASA (Boeing, 2013). The main aim of this research paper is to provide a broad description on the main reasons behind the Federal Aviation Administration (FAA) to order inspections of more than 1,000 Boeing 737 jets and to show appropriate reasons that the inspection of the airline can help the company in ensuring proper management of operations.

Operation Management Operations management is considered as one of the most vital parts of an organizational life cycle irrespective of the fact that it is involved in producing goods or services or is functioning in private or public sectors. The main purpose or aim of operations management is to implement steps that may help the organization to operate efficiently. With reference to the article, “FAA Orders Inspections on Boeing's 737 Aircraft” by Andy Pasztor, it can be apparently viewed that the potential effect of factory defects in the manufacturing process of Boeing 737 has led the company to inspect more than 1000 Boeing 737s, causing an incurrence of total compliance costs of nearly US$10 million (Pasztor, 2013).

The main steps which are usually followed in the process of operations management are discussed below: Contact customer: The first step in operations management is to obtain information on the demand, intension and the core customers/potential customers to buy the products’ produced. Moreover, conserving the contact information is also done to measure the market action (Mahadevan, 2009). Contribute a demand: The next step in the process is to propose a demand of service or product to the qualified customers.

This can be done by offering a written proposal to potential customers. It is considered that business proposal is often determined to be a step in settling complex business processes. For instance, companies like Boeing usually adopt the policy of providing business proposals to potential airlines in order to offer them a broad description of the services they render and the way in which they differ from their competitors (Mahadevan, 2009; Neely, 1993). Sale: In this step, the contract or sale of the product is done to their potential customers.

Establish a written procedure: In this vital step, both the parties agree upon a mutual agreement in keeping with the different aspects such as characteristics and date of supply of the final products among others. The step is recognized to be a vital part as both the parties are benefited from it (Mahadevan, 2009). Required resources: In this step, all the necessary equipments, products and additional resources needed to complete the project are verified. The costs of the entire requirements are measured to implement it in inventory management (Mahadevan, 2009).

Execution: In this phase, the written process is applied in the practical form, resulting in the formation of the defined product (Mahadevan, 2009). Effectiveness: The final expectation according to the contract or customer is measured. Delivery: This step involves the process of delivering the final product to the end customer. This step needs