Object Required
importance of operation management in business
Principle
importance of operation management in business
Theory
Objective: The basic objective behind this assignment is to establish the importance of operation management in business as it plays an important role in producing goods and services for the customers and has also the significant impact on other departments of the organization. The assignment is throwing light on the significance of operation management and its associated functions in the success of a furniture supplier company named Global furniture suppliers that deal in chairs, tables, almirahs and etc. Global furniture supplier is one of the leading organizations of the UK and offers different furniture products to retailers. Operation management influences the other departments of the company in several ways such as in reducing cost by deleting unnecessary activities, managing inventory and maintaining economic order, ensuring optimum allocation of resources by using different mathematical and statistical techniques such as linear programming, assignment and transportation and etc. Since operation management is also important for some other functions such as designing the production process, layout, deciding location and etc and so it becomes necessary to discuss the major functions of operation management. One of the major functions of the operation management department of Global Furniture Company is to choose an appropriate production process for producing goods and services for the customers of the company so their needs and requirements can be satisfied. Capacity planning under operation management plays an important role in maximizing the utilization of available resources for increasing the capacity of the organization as it tries to manage demand and supply for the furniture retailers by the appropriate planning of capacity. The Global furniture supplier company tries to do sufficient effort to reduce defects and increase the quality of furniture products and services of an organization by focusing on total quality management. By focusing on inventory management, the company becomes able for managing contingency situations as it involves maintaining holding, ordering and totals cost of the inventory. Now, it is necessary to determine the health of operational management of Global furniture Supplier Company as affects the various other departments of the company which includes finance, marketing, production and etc. The health of operational management of this company can be determined by evaluating three Es which stands for economy, efficiency, and effectiveness. The economic factor is helpful in saving the money at different stages of the production process as it focuses on reducing the cost of the furniture products of the company with required quality which will ultimately bring profit for the company. The second factor is efficiency which focuses on reducing the total number of defects from the production process of the organization giving a competitive advantage to it over its competitors. The third element is effectiveness which is significant for developing a position of the company to meet the future requirements of all customers and also focuses on different aspects of effectiveness in producing the products that could satisfy the expectations of all furniture retailers who purchase products to this company. The five performance objectives that underpin operations management are cost which minimization attracts a large number of customers and assist in profitability for Global furniture Supplier Company, production of qualitative products will improve efficiency and effectiveness of the entire production process of the furniture supplier company, flexibility helps in changing the time and cost of each and every activity of the production process by taking care of the needs and requirements of products. The other elements are dependability and speed.
Principle: Evaluating the importance of operation management in business by explaining its different aspects.
Conclusion
Conclusion: It can be concluded by using a process model that the company is accomplishing all functions of this department in a very effective way. The production process of the company include the functions of assess of demand, needs and requirements of furniture retailers, the current market trend of the furniture industry and etc which reflects that company is able to forecast the future requirements of products and services using past records and analytical results. Operations management tools are quite effective in getting these results. If we take the help of linear programming system which is the most mathematical technique for minimizing and maximizing the objectives of the company then it is clear that the company wants to increase its profitability and is taking every step to minimize cost on its product and services. However, it is clear that even now the company is earning enough profits and it can increase it too. Now, in order to attain the objectives of cost minimization and profit maximization the Global furniture Supplier Company has to focus on appropriate network planning which includes time, cost, activities and their relation with other operations. Further, operation planning is needed for estimating future demand for furniture products and services of the company which necessitates the identification of needs and requirements of customers along with future market trends of the organization. The all above analysis can be better understood if someone has joined “The MBA course in operation management”.
Published Date
31 Oct, 2018
