Operation Management and Management of Processes - Term Paper Example

 TABLE OF CONTENTS EXECUTIVE SUMMARY……………………………………………….3 STRATEGIES IMPLEMENTED…………………………………………4 OPERATIONS AND SERVICE PERFORMANCE OBJECTIVES……..5 PROCESS DESIGN……………………………………………………….6 SUPPLY CHAIN MANAGEMENT………………………………………7 DIRECTION OF INTEGRATION………………………………………..7 BEST LOCATION……………………………………………………….9 INVENTORY MANAGEMENT AND QUALITY……………………..10 CONCLUSION……………………………………………………………11 Operation management generally focuses on how to manage the functions in an organization ultimately reached through the management of processes. The ultimate aim is to standardize and ease the process of producing products and services thereby. Production of products and services is an activity that is the driver for sales and profits for any organization. But beyond the scope of this production process, there is a lot more; for example, operations management of Intel extends to the substantial measurement and also the analysis of all the various kinds of the internal processes. Conclusively, it can be stated that operations management or management of operations is dependent on not just the production process but also the internal process that take place within an organization, thereby, including the various processes and their structures (Heizer and Render, 2004). EXECUTIVE SUMMARY In order to define the term Operations Management at Intel, we can consider the two words separately; Operation, at the most basic level at Intel, is all about the transformation or conversion of inputs into different kinds of outputs. Inputs can be the traditional resources such as equipment, labor, various facilities, the raw materials, all the processed components, time, and also the non-traditional resources in the form of skills, knowledge and customer relationships and also the Intel's reputation. Where as the outputs can be the services, products, information and also the experiences. Where as the term management means that how the work is done. Intel is a leading company which produces goods and services in order to make their customers happy. If their managing style is good, then only they can produce better outcomes. Management means how to manage things, how to manage production and also how to manage development. Intel's managing power is much strong, because the aim is to generate better results. STRATEGIES IMPLEMENTED Various strategies are being implemented in this company in order to conduct or to take implementing, drafting and also the evaluating cross-functional decisions which really help this company in order to achieve their long-term objectives. With the help of various strategies Intel's mission, objectives, vision, various developing policies and different plans which are either in terms of programs or projects can be very easily specified. (Heizer and Render, 2004) Intel's strategic management is basically a level of managing various activities under setting different tactics and goals. It also provides an overall direction to the company and it is also closely related to it. If we take here an example of the rise of Intel's meteoric, it was only because of its ability and capability to respond to the market along with different innovative and creative products. Intel has also implemented extensive and different changes which generally includes the rebranding and the restructuring. The main strategic objectives of this company are: To analyze and also to identify the strategic inflection points in the whole microprocessor industry. To discuss and to deal with all the growth strategies of Intel. To discuss the main and the important reasons which are responsible for the Intel's failure in anticipating the threat from other companies. To discuss the strategies which are being implemented by other companies in order to gain a competitive edge over Intel. To discuss whether the new initiatives which are taken up by Intel and other companies respectively will enable them to gain a sustainable and remarkable competitive advantage or not. OPERATION AND SERVICE PERFORMANCE OBJECTIVES Intel has an ability to meet their financial and their customer expectations in a changing global economy. In order to win the customer confidence and also to meet their business plan objectives, the leadership team of this company must not only develop a winning strategy, but also try to drive results by turning different strategies into a reality by communication and also by fact-based performance measurement system. (Heizer and Render, 2004) By utilizing a basic performance measurement system, like a balanced scorecard, Intel do commits in order to assess the performance, to monitor the performance, and also the course-correcting performance and then aligning all employees with all the key objectives. An operations plan of the Intel corporation consists of the key strategy, main priorities, all the areas of responsibility and also the critical performance measurements by all the responsible leadership and by the team performance toward the measurable areas. Its critical plan components basically include strategy, performance indicators and also the organization itself. The key plan components of Intel include: The operational plan strategy: to understand why all the targets should be met. Deliverables: to know all the performance measurement targets. Performance indicators or the performance measurements: to show how to meet all the targets. Organization: to understand who is accountable for all the targets. The performance metrics may vary by company to company. However, the critical focus on the key concentration areas and also on the requirements for the success will help a lot in achieving the business objectives. Intel is a company which is always trying to produce such kind of products which are reliable, and can generate better results for the company. It is trying hard in order to generate better outcomes, therefore the service and operation performance objectives are much important for this company. PROCESS DESIGN The goal and the aim of the experience design proposed for the Intel company was only to create an overarching customer relationship that would span the full lifecycle and also the relationship with the services and products. The company is always trying to focus on the needs and demands of the customers so that they can produce products according to their needs and demands. If the customers really believe that their needs will be answered and will be fulfilled, then it is guaranteed that this company will gain maximum shares. Developing needs and meeting all the strategies is the foremost duty or job for all the workers who are working in this company, in order to make sure that every single demand of the customer is being fulfilled. (Heizer and Render, 2004) Externally oriented strategies are those strategies which the company work for, these strategies are the strategies which are visible to all the customers. These strategies are helpful for this company too. Operational strategies are somehow visible to the customers, and they can also decide that whether they are beneficial for them or not. If Intel's work is done properly, and all the demands of the customers are being fulfilled then these strategies are visible to them and they can also take advantage from these strategies. SUPPLY CHAIN MANAGEMENT Supply chain management is basically the management of a network which basically involves the ultimate provision of all the services and products packages which are required by their customers. Supply chain management is basically a cross-function approach in order to manage the movement of all the produced products into an organization which is Intel, various aspects of the internal processing of products into the finished goods, and then finally the movement of these finished goods out of the company or organization (Intel) toward their consumers. No doubt Intel do survive to focus on all the core competencies and also to become more flexible, the company have to reduce their ownership of their products sources and the distribution channels. The purpose of supply chain management in this company is also to improve the trust and also to collaborate among all the supply chain partners, therefore to improve the inventory visibility and also to improve the inventory velocity. (Waters, 2001, pg 600-654) Several models in this company have been proposed and various strategies have also been introduced and used in order to understand the various activities which are required to manage the material movements across company boundaries. DIRECTION OF INTEGRATION There are basically two kinds of directions. 1. Vertical 2. Horizontal The vertical integration basically describes a style of the management control. Vertically integrated companies are usually united through a hierarchy along with a common owner. Usually every member of the hierarchy do produces a different service or the product, and these produced products then combine together in order to satisfy a common need. It is also contrasted with the horizontal integration. Vertical integration is also one of the main and an important method which is used in avoiding the hold-up problem. Where as the horizontal integration basically describes a type of control and an ownership. It is a type of strategy which is used by a business or by any corporation that seeks to sell a type of product in various or different markets. Horizontal integration in marketing is much common and also popular as compare to the vertical integration. (Schroeder, 1981, pg 600-680) Intel is a company which uses the horizontal integration. As mentioned above it is an integration which is used by any company that usually sells their products in different markets. Intel is the company which do sells their products in different markets. When a product is being produced in any company it is an input process then transition takes place and then the output is produced. Intel's main purpose is to produce those products which are produced at a best level, it try to produce products that are effective as well as efficient and then the main goal is to generate such kind of result which can be beneficial for their customers as well. That kind of product which can satisfy every customer's needs and demands. (Johnson, 1972, pg 500-546) Intel very successfully uses a pull strategy in combination with a push in it. Some important factors are: Applied only to that portion of the supply chain where the demand uncertainty is very high. Distribution and production are demand driven. No inventory, response to any kind of orders. Decrease in the lead time. It is difficult to implement. Planning and the public policy is both the organizational process of maintaining as well as creating a plan. This kind of process is used by the Intel company in order to create a better environment which is termed as a fundamental property of an intelligent behavior. Planning is an essential thing which requires techniques and various strategies in order to make any system the best one. On the other hand a control system is a device which is used to manage, to command, to regulate or to direct the behavior of other systems or devices. Just-in-time (JIT) is an inventory strategy which is implemented in this company in order to improve the return on investment of this company by reducing its in-process inventory and also its associated carrying costs. In order to achieve JIT the company must have the signals of what is going on elsewhere within the process. JIT is an essential method which is used by this company in order to make sure that what is going on, what we are making, how and at what cost. (Russell, 1999) BEST LOCATION While there are many factors that can determine a business owner's decision for the location selection, these below mentioned 10-points are mush important. 1. Community Characteristics. 2. Labor Force. 3. Transportation. 4. Operational Costs. 5. Environmental Factors. 6. Government Factors. 7. Telecommunications. 8. Quality of Life. 9. Relocation Services. 10. Incentives. These above mentioned factors are important while selecting a location, Intel also focus on these factors in order to choose the best location where they can run their business properly. The most appropriate location is the place where their product's demands are high, people actually want to buy their products so that they can generate better outcomes. INVENTORY MANAGEMENT AND QUALITY Inventory management system is a system with the help of which a company can keep all the records. There are basically three basic reasons for keeping an inventory: Time. Uncertainty. Economies of scale. Intel inside basically uses an inventory management system to maintain their all the products and services in order to keep a record. (McClain, 1980, pg 700-706) Quality is an important term which should always be consider in order to gain maximum shares. Is one's quality is not good then the results will be also in bad conditions. Intel's main purpose is to provide better quality, is always trying to meet the demands and needs of the customers and to satisfy their customers in order to make sure that whatever product they are using is error free. Customer satisfaction is always seen as the Intel's highest priority. This company believes that it will only be successful and powerful if their customers are satisfied. This company is also sensitive to the customer requirements and therefore they responds rapidly to them. CONCLUSION In a competitive marketplace where every other businesses do compete for the customers, customer satisfaction is always seen as a key differentiator and is increasingly has become a key element of every business strategy. Understanding every customer needs will help this company to define new market opportunities and will also help to drive innovation and the revenue growth in every aspect of this company. This company is a company which is no doubt using various set of strategies and methods in order to make their consumers or the customers happy. (Waller, 2003, pg 800-899) REFERENCES Michael Lewis, Nigel Slack. 2003. Operations management: critical perspectives on business and management. Routledge. Jae K Shim, Joel G Siegel. 1999. Operations management. Page 400-485. Barron's Operations management educational series. Jay H Heizer, Barry Render. 2004. Operations management. Pearson Prentice hall. C.D.J Waters. 2001. Operations management: producing goods and services. Page 600-654. Financial times prentice hall. Roger G. Schroeder. 1981. Operations management: decision making in the operations functions. Page 600-680. McGraw Hill. Richard Arvid Johnson. 1972. Operations management: a systems concept. Page 500-546. Houghton Mifflin. John O. McClain. 1980. Operations management: production of goods and services. Page 700-706. Prentice Hall. Derek L. Waller. 2003. Operations management: A supply chain approach. Page 800-899. Cengage Learning EMEA. Robert Johnson, Graham Clark. 2001. service operations management. Page 400-413. Prentice hall. Read More