Operations Management - Essay Example

Number Operations Management s are the core elements for any organization as the success and failureof any organization depends on the satisfaction level of the customer. Therefore, it is extremely vital to respond to the customers at a rapid pace. While responding to customers at a rapid mode, organizations need to work upon their cost saving issues so that they run a successful and profitable organization in the business market.The ways in which organizations can respond to customer needs at a faster pace and reduce their costs as well are through elimination of overhead costs, focusing on reducing the amount of inventories being used, work upon being more efficient while conducting tasks and try to have few errors.

The efficient processing of work flow tends to cause an impact on the reduction of inventories which saves costs immensely. Inventory cost at times may be too much to bear for organizations and therefore reduction of inventories saves cost for organizations. Focusing on high quality may reduce the cost of redoing the task again. Customers want high quality products at all time and organizations should ensure high quality working environment to reduce the changes or complains that are related to quality by customers.

This would build strong brand image and reduce the cost and time of producing the product again. Overheads should be eliminated to the maximum level so that work processed and flows are faster and the further steps are carried out in a more effective manner. Reduction of overhead costs tends to make the organization highly cost effective. While focusing on generating revenue at a fast pace, the order deliveries need to be made quick, this way cash flows may be improving at a constant mode and cost of working capital may be reduced immensely.

Customers are satisfied with faster deliveries and for organizations cash flows are improved (Meredith and Schafer, 24). The element of communicating and delegating tasks in an effective mode may allow the employees to do error free work and this further would result in meeting the demands of the customers in an effective way without facing the issue of customer complains. Orders from customers will come in more as they will be satisfied with the results. Error free work will allow the employee hard work to be recognized by the organization and this will further improve the working conditions of the employees (Meredith and Schafer, 24).

Responding to customers at a fast pace may allow the unit cost of the product or service to be abridged at a certain level. According to the empirical study conducted by Meredith (Meredith and Schafer, 24), the relationship between response time and unit cost has been calculated as 2:1 which is a good sign for cost effectiveness due to rapid customer response. Organizations under such conditions have the ability to gain competitive advantage and also attain the position of high market share in the business market.

The organization may not reduce the price at this level and this may result in more profitability along with more sales for the organization. The discussion above concludes strongly that rapid response to customer demands may result in a cost effective organization as customers look for quality and error free products and services. If organizations manage to deliver well, then they have strong chances of reducing costs.Works CitedMeredith, Jack R. and Schafer, Scott M. Operations Management. Wake Forest University.

John Wiley & Sons Inc, 2011.