In order to facilitate the strategic growth and maximum utilization of resources there is strong requirement of focusing on the operations management. It provides the better and innovative solutions to the company with relevance to gain the competitive advantage along with the cost reduction (Fitsimmons, 2009). There are various benefits of operations which have been explained in this report in very articulated manner. Further this study focus on three E’s (efficiency, effectiveness, economy) which could be achieved through effective operations management strategies. The concept of cost minimization and quality maximization has also taken into special consideration. Overall this report is helpful in gaining the proper knowledge about t
1.1 Why operations management is important for organizations?
There are varieties of significance of operations management which are discussed below:
Improve the productivity: Operations management is one of the very crucial elements within the organization which helps in improving the productivity of organizations. Without proper operations management none of the organization can improve their operational efficiency and gain the competitive advantage. By developing the appropriate production or manufacturing strategy the organization can lower down the cost which is most essential with a view of providing the benefits to the organization. Furniture suppliers can set down the path and can finish their task within the stipulated period of time. Time management is also responsibility of operations management (Greasley, 2007). Linear programming, critical path analysis and network diagram etc. these are some tools and techniques of project management which has shown its huge expediency in time management.
Proper utilization of resources: most of the organizational resources are mainly used by operations department. All the raw material which helps in the production process must be used in proper manner. It not only facilitates the effective cost management but also helps in producing the superior quality goods. Different techniques of project management enable the company to allocate the resources in proper way. Furniture supplier can get the privilege of this factor at very large scale. It has direct relationship with the supply chain management and inventory management (Mahadevan, 2009). The managers can take the decisions as operations management provides various tools and techniques which could be helpful with a view of avoiding the wastage of resources.
Other than these aspects total quality management and cost reduction these are also significant factors of operations management. This department has huge role in the strategic planning process. Operations management generally maintains the proper alignment with the research department and tries to introduce innovation through adopting new production techniques. It could be consider as major importance of operations management (Akpolat and Pitinanondha, 2009).
1.2: Analyze the operations functions of a selected organisation
The major operations functions of furniture supplier will be:
Acquiring the raw material: this is a major operational function for cited organization. They need to acquire the raw material as per the demand of their client and which can meet out their production requirement. Here at this stage the company will focus on the quality of product as well as on the price of the raw material. It is very crucial function of organization which provides support to entire production process (Theoharakis and et. al., 2007). If company will be having low quality raw material then it will put its impact at the quality of finished product.
Time management: It is another function which must gained huge priority by the mentioned company. If they want to deliver their product to the retailers then they have to produce the product within the stipulated period of time and it could be helpful for increasing the productivity as well. The production cycle will be reduced if they will be having adequate time management strategies. Furniture production process is not very complex process but it involves various people at one point of time. Allocation of responsibilities and duties will also helpful in the production process.
Preparing the layout: it is also one of the major factors which is required to be considered by the operations management (Anh and Matsui, 2011). Furniture production involves the variety of parts which comes into production stage at one point of time so furniture supplier has to identify the appropriate layout which can ensure timely completion of project. Further proper layout helps in reducing the production time as well as cost.
Production or manufacturing: Once the organization is clear with their production stages and all other trajectories there is requirement of focusing on the production or manufacturing of products. Here at this stage they have to measure the quality of product and it should meet out the standards. Thus these are the major operations functions of furniture supplier (Foropon and McLachlin, 2013).
1.3: Evaluate the operations management of a selected organization
Operations management for the selected organization must not be complex and tardy. It should be completely based on the appropriate strategies which can help in completing the tasks in effective manner. The expediency of operations management is very huge within the organizations and there should be proper control on the operational activities. According to process model the company has to understand their process and on the basis of that they can surely improve their operational efficiency.
The company has to arrange the adequate staff which will help in the production process and they must be able to handle the machineries and equipments as well (Massis, 2010). A complete process is required to be followed in very stringent manner. For the same purpose operations management has to make effective alignment with the finance department it will help in the management of financial resources in appropriate manner.
2.1 Significance of the three “Es” to the organizations
Understanding of the well-known 3 Es that are effectiveness, efficiency and economy management is helpful to management of the organization for the evaluation of the performance further it can enhanced the quality of the overall performance of the business.
Effectiveness: It can be explained in the terms of the achievement which is attained by the organization. It is based on that, targets and goals are met by the business or not. Effectiveness in the performance leads to the right work and makes the managers responsible for the giving assurance for achieving the target by the organization (Understanding operations management, 2013). Effectiveness is measured by the setting out the clear objectives before work starts and then makes evaluation that objectives are met or not.
Efficiency: It can be measured in the terms of capability of the organization for the generation of the output from the input. By the efficiency the operations of the organization can be managed easily with fewer resources and less efforts. Efficiency can be achieved by the process followed to complete the work must be defined and then each part of the project is required to be analyzed for to check which resources are required (Boer, 2003). Efficiency is the benchmark for the measurement. Through it resources can be utilized optimally and best outputs can be achieved by the business.
Economy: Economy is third but crucial element of the three Es model, which covers the financial aspects of being work done. Economy of the finance is only factor which can be considered for improving the efficiency because finance is the heart of the business. Without the management of the finance the operations of the organization cannot be run with efficacy. Economy is measured by the looking at the cost of sources consumed and the value of the output delivered (Craighead and Meredith, 2008).
2.2 The impact of the tension between cost minimization and quality maximization
Cost and the quality of the products and services both are the crucial aspects for the organization. For the maximization of the profit it is required to minimize the cost of the production but affect the quality of the product which directly affects the consumers of the product and services of the organization. If the cost of the production is increased for the increment in the quality it will reduced the profit of the organization. As the era shifts from free for service toward managed care, few issues attract more attention than the tension between quality and cost (Craighead and Meredith, 2008). Quality is required to be preferred first in the objective of the performance. The external quality of the goods and services of the organization is that the customers will have less companies and the business will achieve the loyalty of the customers even if the higher price is charged by the organizations. This process will increase the revenue and a profit of the organization which is automatically minimizes the cost of the organization. It can be referred to that cost is saved and dependability is increased and it will also make increment in the speed of responses. The reason behind is operations of the organization will continuously improves the performance and corrects their mistakes so it will make reduction in the complaints of the customers of the business (Massis, 2010).
2.3 Significance of the performance objectives that underpin operations management to organizations
Operations of performance of objectives in order to provide assurance those resources are optimally used by the organization for attaining the best quality output. The crucial task in the process of the operation is the identification of the appropriate measures of performance that relate to the internal and external factors that are relevant for the competitiveness of the organization. The five basic objectives of the operations of performance is as follow-
Cost: the crucial and the core objective of the performance is capability of the completion of the production at the minimized cost which can be possible.
Quality: refers to the ability of the business to done production in accordance with specification and completing it without any error and omissions in the procedure.
Speed: is linked to the capability of the organization for doing the process with speed in response to the demands by the customer. Through it offer of short lead times can be provide by the business to the consumers for the completion of their orders in the situation of the increasing demand (Understanding operations management, 2013).
Dependability: refers to the ability for the delivery of the product and services according to promises made by them to the customers. The example of it can be quotation of the product and services or other published information by the business. The delivery of the goods by the organization should be reliable.
Flexibility: refers to the ability of the change in the operation. Flexibility is comprises of four aspects which are as follow- first is to change in the volume of production. Second is making change in the time taken for the production. Third is ability to alter the production mix of various products and services produced by the business.
If the furniture supply is able to attain the one or more of these operations performance objectives it will lead to the excellence for the business strategy based on a corresponding competitive factor (Akpolat and Pitinanondha, 2009). It is essential to note that success of any particular strategy depends upon the integration of the performance objectives and customers valuing.
3.1 Linear programming adds value to a given production process
Linear programming is a mathematical technique which is used by different organizations for determining the optimal solution to a certain specific problem in the production process of organization, such as maximization of sales, profit, market and share, etc. Therefore, LPP is very useful technique for allocating resources in the production process of the organization. It adds the value to the production process of the furniture supplier by maximizing their profit for manufacturing and distributing finished goods to leading furniture retailers.
3.2 Critical path analysis and network planning
Network planning and critical path analysis is a very significant technique for review of the entire project. In provides maximum duration for completing the whole project with minimum cost with a specific plan of all activity of project. For this furniture supplier organization they require complete network planning for their whole process of manufacturing and distribution of their finished goods to the furniture retailer (Britian and Treasury, 2013). It is important technique for minimizing cost with optimum allocation of funds and time of the company.
3.3 The need for operational planning and control in a selected production process
Operational planning can define as a blue point of the whole operation and production process of the finished goods with appropriate distribution of finished goods. Operational planning includes the objective of the production plan, deciding targets, planning, manufacturing, testing and implementing in the real world situation. It is required for various purposes; such as:
- For optimum allocation of the all available resources of the company.
- Reducing cost of whole production process.
- Maximizing profit and sales.
- Improving the efficiency of the whole production process (Neave, 2013).
- Along with this proposed production process is required for managing all inventories on just in time basis.
- It is required for managing the quality of the producing goods and services of the company.
- Further, it is necessitate for improving the overall production capacity of the company to meet the demand of the products and services.
- In addition, required for managing the supply chain and logistics operations of the organization.
- Proposed production process is required for reducing cost and improving the profitability of the company.
4.1 A set of clearly defined operational outcomes for a selected organisation
As per the above discussion production process for manufacturing finished goods of furniture for distributing furniture retailers, some important standards and objectives are as follows:
- Company should earn sufficient amount of profit for maintaining their all expenses and different activities of project.
- Company should attain their all targets with effective time management and maximum time duration of the production plan.
Furniture supplier should maintain efficient quality for their whole production process and evaluate it with six sigma technique which is a significant technique for quality management (Simmons, Bland and Wojciechowski, 2012).
4.2 Quality management techniques are applied to improve operation in selected organization
Total quality management is very important for improving the operation and production process of the whole furniture company. Quality management process can be improved by the effective quality planning, monitoring and controlling of entire process. Six Sigma methods is the best technique for analysing the quality of the furniture company and their production process. It is a statistical analysis which calculates the defect levels of operation and production process of the company (Fitsimmons, 2009). It is very important technique which provides efficiency in the quality of production and operation of the company for producing goods and services in terms of opportunities of defects.
The present report concludes that operation management is very significant task for managing entire operation and production process for the furniture supplier, such as for reducing the cost of the production process and for deciding operational functions of company. along with this report also concludes that company can use linear programming for reducing cost and maximizing profit and optimum allocation of resources of the entire production process of the company. Along with this entire project plan for manufacturing and distributing finished goods and services represent that maximum duration for completion of the project can be state by the critical path of the organization. Including this form evaluating quality of the entire production process can calculate by the six sigma technique and company can improve their quality by effective process of total quality management.
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