Operations Management in Manufacturing of PowerSki - Coursework Example

Operations Management Student’s Name Institutional Affiliation Introduction Operations management is a management field concerned with designing, supervising and controlling production process, as well as redesigning operations of the business in its process of manufacturing of goods and services. It entails the responsibility of guaranteeing efficient and effective business operations in terms of making use of available resources. Similarly, it capitalizes on as few resources as possible to minimize the costs of operation while meeting the customer needs. It deals with the management of the process that converts inputs (energy, materials and labour) into outputs (services and/or goods). Therefore, operations management is an area involved in managing and directing technical or physical functions of a business, as well as the organizational functions, especially those are connected with production, development and manufacturing. In general, programs on operations management incorporate principles of manufacturing, systems of production, general management, industrial labour relations, equipment maintenance management, supervision of skilled trades, production control, strategic manufacturing policies, cost control, systems analysis and material planning (Shim & Siegel, 1999). Operations management in production Development process of product in a business can be complicated and lengthy. For instance, the PowerSki Jetboard took Bob Montgomery and his crew duration of sixteen years to develop it, and these comprised thousands of changes in its design. However, the design of the PowerSki Jetboard was worth the efforts as it is a luxurious, engine-propelled private watercraft that serves as a high-performance surfboard, as well as competition wakeboard. The Jetboard was welcomed with admirations, and it won the award of the “Best Invention of the Year” in the Times Magazine. News on the Jetboard spread all over the world and was published in several business and technology magazines. Similarly, it featured in several movies, numerous TV shows, as well as on the YouTube. Therefore, like in the case of PowerSki Jetboard, every business, whether in manufacturing or the service sector, must strive to produce high quality goods or services that meet customer requirements. Hence, for a business to compete favourably with other firms in the same industry, it needs to convert its resources that include labour, information and materials into services or goods in the most efficient manner. Therefore, the top-most level manager in charge of transformational process is referred to as the operations manager. Thus, the task of the operations management is comprised of all the processes concerned with conversion of inputs into outputs. Similarly, the operations management is responsible in planning, controlling and organizing systems that are involved in production of goods and services (Collier & Evans, 2010). Hence, in simple terms, the operations manager is responsible in management of processes that entail conversion of raw materials into finished goods. Operations management in manufacturing As in the case of PowerSki, all producers aim at meeting a common goal: transformation of business resources into finished products. Therefore, to meet this objective in the contemporary business world, manufacturers need to continually endeavour to enhance operational efficiency. They need to direct the business’ production process with quality as the focal point in order to minimize on the costs of labour and materials, as well as striving to eliminate or reduce costs which do not have any impact on the final good (Shim & Siegel, 1999). Therefore, the operations manager is involved in the decision making process so as to attain organizational goals. Hence, the functions of the operations management can be categorized as follows; Quality control In terms of ensuring manufacturing of quality products and services that meets sophisticated customers’ needs, tastes, as well as preferences, the operations manager should strive in maintaining standards and specifications of the goods to be produced (Kamauff, 2010). Production control Once the production process is in progress, managers need to continually monitor and have a plan of the procedures to be followed in the production process. Hence, they need to consult and give quick response to customers’ feedback in order to make necessary adjustments where required. Similarly, they also need to supervise the purchase of inputs, as well as the maintenance of inventories (Collier & Evans, 2010). Production planning Production planning calls for the manager to determine the means of production, place of production, as well as the determination of how facilities meant in the production process need to be organized (Kamauff, 2010). Decisions on production method The first phase in production planning is determining on the suitable production process that should be put into place in production of goods in the business. One of the main methods of recognizing the nature of this decision is through a comparison of three types of techniques; mass customization, make-to-order, as well as mass production. Therefore, one of the duties of the operations manager is to team up with other managers, especially the marketing manager to come up with a process that meets the requirements of business’ customers (Shim & Siegel, 1999). Mass Customization This method suggests that the business should interact with customers so as to determine the needs, tastes and customers’ preferences in order to produce a product that matches the customers’ requirements and specifications. Similarly, in an attempt for the business to meet the customers’ demands it should strive to produce the products using efficient production methods so as to cut on the costs. Mass production acts as an efficient technique of production due to benefits that accrue as a result of economies of scale. Consequently, mass production should be maintained at a particular point so as to allow for customization of goods in a bid to meet diverse and a sophisticated customer needs (Collier & Evans, 2010). Recently, numerous firms have adopted the strategy of mass customization, and it is growing gradually. One of the renowned mass customizer is the Nike Company which have achieved great success through allowing its customers to dictate on how their athletic shoes, equipments, as well as apparel, should be designed through the company’s iD program. The Nike’s website has been designed to meet the changing demands of customers in order for the company to produce products that satisfy its clients. Make-to-Order Traditionally, several consumer products such as clothing and furniture were designed and made by people who practiced various crafts. However, in the contemporary business world, these are customized due to their nature in order to meet the specifications and the requirements of the customers who place orders on them. This strategy has been used by various businesses such as a print shop that deals with the production of low-volume, as well as high-variety products depending on specifications of the consumers (Shim & Siegel, 1999). Mass production During the early 20th Century, a new strategy of producing goods had been implemented: mass production. It is a technique of producing identical goods in large quantity at a lower cost due to economies of scale and at a price that is favourable to a large number of consumers. In this strategy, the operations manager makes production decision based on forecasted future demand. The produced goods are reserved in inventory for future sale. However, this strategy is especially suitable for standardized products that range from electronic appliances to processed foods (Collier & Evans, 2010). Measures for operations management Operations strategy entails plans and policies that are used in assessing the business’ productive resources so as to regain its competitiveness in the industry. Measures in operation management can be categorized into either effectiveness measures or the efficiency measures (Kamauff, 2010). Effectiveness measures These measures include disposal costs, maintenance costs, purchase price, use cost, upgrade cost, as well as the actual price which is usually dictated by the market forces of demand and supply. Similarly, the quality of the product usually bound by the compliance coupled with the specification. Additionally, time is also a measure of effectiveness and it includes information lead time, punctuality, as well as productive lead time. Furthermore, flexibility as a measure of efficiency entails quantity, gamma and mix. Finally stock availability is also an important measure of effectiveness (Shim & Siegel, 1999). Efficiency measures Productivity is one of the parameters which is used in the assessment of systems of production. In general, productivity is an output-input ratio and can take several forms that comprise of workforce productivity, machine productivity, warehouse productivity, as well raw material productivity (Collier & Evans, 2010). Conclusion The decisions made in the planning phase have a long term implications on the performance of the business and determines the success of the business. Therefore, before managers arrive at a decision concerning operations process, there is a need to consider the objectives, as well as the goals set by the manager in charge of marketing. The operations manager needs to determine whether the company’s intention is to cut on the cost of production and compete in terms of prices. On the other hand, the manager has to determine whether to improve on the quality of goods and increase on the price. Similarly, the operations manager has to determine whether the business needs to build a reputation for trustworthiness to its customers in order to capture a larger market share. In addition, the decision making process should determine whether the business intends to deal with production of a single good or it will involve production of a range of products. References Collier, D. A., & Evans, J. R. (2010). OM2. Mason, OH: South-Western Cengage Learning. Kamauff, J. W. (2010). Manager's guide to operations management. New York: McGraw-Hill. Shim, J. K., & Siegel, J. G. (1999). Operations management. Hauppauge, NY: Barron's Educational Series.. Read More