Production and Operations Management Insights - Essay Example

Production and operations management Name: Course instructor: Date: Production and operations management Introduction In organization, operations management is the department that controls the resources required in the manufacture of the company’s goods and services, Advarneg. Inc. (2011). This department manages people, technology, information, equipment and other company resources. Operations management is an essential function for the achievement of targets of any business association. Operations management is essential for profit or non-profit organizations and physical good or service organizations. Most other organizational departments are meant to offer support to the operations department. Without the products and operations management department, the company would have no goods or services to present to the market. According to Advarneg. Inc. (2011), the operation management department plans and coordinates resources needed in the production and delivery of goods to the location of the retail customers. The operations administration department transforms a company’s unprocessed resources into completed merchandise and services. The operations management requires inputs such as human resources, facilities, raw materials, processes, expertise and knowledge in order to come up with outputs such as goods and services. In addition, the operations management coordinates the necessary resources that are required in the production of goods and services. It is also accountable for all facets of operation management. The classic cabinet manufacturing company should ensure proper production and operation management systems and processes. This will assist the business to guarantee cost effective production processes that will help in the improvement of the company’s profits. The operations manager in the classic cabinet should therefore ensure that they purchase enough materials that can help in keeping the production processes active. Poor profits are another operational and strategic issue in classic cabinets. Increase in production costs leads to reduced profits. The classic cabinet is experiencing increased production costs and this explains why the company is also experiencing reduced profits. Companies need to ensure that they incur lower production costs in order to maximize their profits. Good planning of the production process can help a company in achieving reduced production costs hence increasing on their profits. The classic cabinet is has also been found to be purchasing more raw materials than it can use in production. This means that most of their capital lies in the purchase inventory. The company should ensure that they purchase enough materials that can be used in the production processes thus; they should not purchase more materials than the products they can produce. Lack of production planning leads to the purchase of excess raw materials hence poor production. Production is the part of an organization concerned with the conversion of a variety of inputs into the essential outputs, Advarneg. Inc. (2011). It is an organized transformation of one form of substance into another form via chemical or automatic processes to generate or improve the usefulness of the merchandise to the consumer. Production is a process that adds value to the company’s raw materials. In each production stage, the value of the organization’s goods increases. Production system is the organization part that produces products of an organization. It is a business activity whereby possessions flowing within a definite system are mixed and changed in a controlled manner to add value in agreement with the policies communicated by the organization management. The production system is an organized activity and this means that all production systems must be objective. It helps in the transformation of various inputs into useful outputs. Moreover, in each production stage, the value of the organization’s goods increases. Discussion Organizations need efficient production systems and process in order to succeed in the production of merchandise and services. According to Camdereli Z. (2010), Good production techniques and strategies need to be used in order to produce excellent goods and services. In the classic cabinets, proper production systems and process are used in order to help in the formulation and implementation of a competitive advantage. As a manufacturing company, the classic cabinet organization faces certain operational and strategic issues. One of the operational and strategic issues facing the classic cabinet company is incomplete production processes. Incomplete manufacturing processes in a company emanates from poor planning of the production process, Camdereli Z. (2010). Classic cabinet should ensure proper planning of their production processes in order to guarantee that efficient goods and services are produced. Lack of proper production planning leads to the production of incomplete goods hence this can lead to the company’s losses. Another operational and strategic issue facing the classic cabinet company increased production costs. Poor production planning is one of the main causes of increased production costs in a company. Failure to make good production plans may make the company to experience increased production costs. The operations manager assists in the manufacture, distribution and management of projects in an organization. This helps in adding value to an organization hence enabling the organization to gain sustainable development through satisfying the demands and needs of the clients. Production planning and inventory control system is one of the current production systems and processed used in the classic cabinets. Production planning in classic cabinet ensures that the necessary materials are there for the production and delivery of goods and services to customers. In addition, production planning ensures the maintenance of the lowest possible levels of inventory systems. Moreover, production planning helps operation managers to plan the manufacturing processes, delivery schedules and the selling activities of the goods in classic cabinet. Production planning also includes the purchasing of the necessary raw materials to ensure a smooth running of the production process, Emerald E. (2010). Interaction with suppliers and clients is a production system that is used in the classic cabinet. This shows how the company interacts with the suppliers during the supply of raw materials and with the clients during the selling of the finished products. Flexible production processes are essential in order to help in the production of market competitive goods and services. Companies have to ensure that they use the right manufacturing and distribution processes in order to ensure that efficient goods and services are offered to the customers. Companies have various operational strategies. These include corporate strategies, business strategies and functional strategies, Emerald E. (2010). These strategies are essential in a business because they help in the operation of the business. In this connection, each of the operational strategies is paramount in the production and operation management of the company. According to Emerald E. (2010), Corporate, strategy is established at the highest level of the company’s management. This helps to show the kind of growth in the organization in terms of the achievements that the come makes over a specific period. Business strategies are also essential in the operation of an organization. Classic cabinet has to ensure good business strategies in order to improve its profits. Businesses strategy in classic cabinet involves operating units in an organization that sell distinct goods and services to its customers while competing with its well-defined competitors, Emerald E. (2010). Functional strategies are other operational management strategies. The functional strategies in an organization involve production, finance, marketing and personnel management. The operations manager should ensure that all the functional strategies in the organization are performed well in order to ensure efficiency in the production and marketing of goods. The section of finance is a functional strategy in operation management. This section helps in the management of the organization’s funds. The people in charge of finance management in the classic cabinet should ensure proper management of the organization’s funds in order to improve the organizations output, Wang H. et al (2009). Purchasing is another operational aspect that affects the classic cabinet organization. The company purchases more raw materials than it can use in the production of goods and services. The use of poor purchasing techniques is an operational process that affects the operation of classic cabinet. Organizations need to ensure proper purchasing techniques as a way of proper operation management in their firm. Proper purchasing ensures good inventory and delivery planning. This allows organizations to purchase adequate raw materials that aid in the production of sufficient goods and services. Efficiency in the production of goods and services ensures that clients get goods at the right time and place. Shift in production causes effects on an organization’s production level. In the classic cabinet, the new builders’ kitchen line negatively affects the operation of the organization. The new builder’s kitchen line affects the Classics cabinet because they cause competition in the production of goods in the company. The production of two different commodities causes competition for processing time on the same equipment by the same artisans, Linda C. (1998). Organizations should ensure that only one commodity is produced at a time. Moreover, if an organization has to specialize in the production of two types of goods, there should be different equipment and people to produce the two types of commodities. The production of new builders’ kitchen line has caused many goods to lie in the manufacturing plant at various stages of completion. It has also affected the operation of Classic cabinets because there is an increase in work volume leading to the production of incomplete goods and services. It has also changed the manufacturing area into a factory clogged up with partially completed work. This affects the output of the company because the partially completed work partially completed work holds much of the company’s capital, Simon M. (1997). In Classic cabinets, Chinh Chun has to make various decisions under the current operating strategy to maintain effective production. One of these decisions is about the product to be produced in the company. The organization has to decide on the products that they will manufacture. The products selected must meet the needs and demands of the clients. The role of the production and operations management in Classic cabinet is to ensure that the business makes the right products in accordance with the production plan. Decisions on product regard the quality, reliability, quantity, production costs and delivery dates, Hongmin L. et al. (2010). Chinh Chun has to plan about the product because this will help the company to ensure that their production is in line with the demands of the clients. Chinh Chun is also required to make a decision on their manufacturing plant. The manufacturing plant in Classic cabinets comprises the entire fixed assets of the company. The operations manager has to plan on the plant to use in the organization. Decisions on the plant comprise of the need for maintenance, environmental issues, and reliability of the asset, future demand of the asset and the safety of using the asset. The operations manager must ensure that all assets used in the organization are of the right quality to enable efficiency in production. The assets that are used in a manufacturing organization ought to be flexible in order offer essential flexibility in the production of a wide variety of goods, Singhal K. (2010). The other decision to be made by the operations manager is the processes to be used in the manufacture of the company’s products. Several processes can be used in the production of the same product. It is the duty of the operations manager to choose the best process that can help in the production of quality products. In choosing the right manufacturing process, the operations manager must consider issues of safety of the process, the available capacity, and cost of the production process and maintenance requirements of that particular process. In addition, Chinh Chun has to make decisions about the manufacturing program of the company. The production program is concerned with the dates and times of the production of products to be delivered to the clients. The company’s cash flow, purchasing patterns, availability of storage and transportation may sometimes influence the production program decisions made in a particular company. The operations manager should therefore consider all the essential factors in order to decide on the suitable production programs, Singhal K. (2010). The operations manager is also supposed to decide on the kind of people to take part in the production process. Production of good quality products depends on the people who take part in the production process. Production of goods requires experienced and well-motivated people whose knowledge and skills is beneficial in the production process. Decisions regarding people to participate in the production process are concerned with matters such as safety and training of the employees, wages and salaries, working environment, leadership and motivation and general organization communication. The operations manager must ensure that the people involved in the production of goods in the company are well trained to ensure that quality goods and services are produced, Ali D. (2010). Manufacturing is another decision that has to be made in the Classic cabinet. The company has to make decisions concerning the right manufacturing tactics to be adopted. The operational manager can decide on the materials that must be kept in stock to ensure efficiency in the production process. Lack of production materials can lead to increased production costs if a delay in production occurs. In this connection, Chinh Chun has to make decisions to ensure that essential manufacturing items are kept in stock. Moreover, production decisions are also supposed to be made regarding the suppliers of the production materials. Operations manager has to negotiate with the company’s suppliers to ensure that the supply of manufacturing materials in the company is efficient, Hongmin L. et al. (2010). Sufficient supply of production materials helps in minimizing production cost. Lastly, the operations manager has to make decisions the logistics process to be used in the production of goods in the company. The company needs to negotiate with the logistics companies in order to ensure that there is efficiency in the production of goods and services, Emerald E. (2010). The move to the production of builder’s kitchen might have great effects on the company’s financial structures. When a company indulges in the production of different kinds of goods, most of its capital is invested in the production process and this might result to losses if the goods produced do not sell at a faster rate, Hongmin L. et al. (2010). The company has to ensure that all goods produced are sold at a faster rate to ensure quick return on capital. In addition, the move to the production of builder’s kitchen might affect the financial position the classic cabinets’ organization because the company will invest more cash in purchasing other production equipment. This move may also have a positive effect if the production of the builder’s kitchen if the new products sell at a faster rate. Conclusion Operations management is the conversion of a company’s inputs into outputs. The main concern of the operations management is the conversion of a company’s resources into useful goods. The conversion of resources into useful goods is what distinguishes production and operations management from other organizational functions such as marketing and personnel. Production and operations management involves processes such as physical distribution of goods and services, collection of marketing personnel and other relevant production processes. Production and operations management is an essential unit of every organization. It helps a company to achieve effectiveness, efficiency and customer satisfaction. Efficiency in production ensures useful utilization of a company’s resources. Efficient utilization of a company’s resources is a desired objective in every organization. On the other hand, effectiveness of production and operation management ensures good services are offered to the customers. Production and operation management not only needs to be effective and efficient but it should also satisfy the needs of all customers. In this connection, every company has to ensure proper production and operations management in order to ensure effective production of goods and services References: Advarneg. Inc. (2011). Operations management. Encyclopedia of business, 2nd Ed. Ali D. (2010). Production and operations management. Issue of production and operation Management. May/April 2010 Camdereli Z. (2010). Management insights. Production and operations management. January/February 2010 Emerald E. (2010). International journal of operation and production management. Emerald Operations and logistics management submit collection.2010 Hongmin L. et al. (2010). Optimal planning quantities for product transition. Product operations Management. 2010 Linda C. (1998). Environmental and operations management face the future. Decision line, May 1999 Simon M. (1997). Implications of business management for operations management. International journal of operations and product management. 2010 Singhal K. (2010). POM journal among business week’s 20 premier journals. Merrick school of Business, university of Baltimore Wang H. et al (2009). Production and operations management: supply chain management Research and review, trends and opportunities Read More