Operation Management Assignment
WordsQuestion1: Why is operations management important in this company ?Operations management refers to the administration of business practices to create the highest level of efficiency possible within an organization. Operations management is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization (Stevenson, W. J., & Hojati, M., 2007). The operations function comprises a significant percentage of the employees and physical assets in most organizations. Operations managers are concerned with each step in providing a product or service. They determine what should go into an operating system, such as equipment, labor, facilities, materials, energy, and information, to produce the output(Stevenson, William J., and Mehran Hojati., 2007). Operations managers are also responsible for critical activities such as materials management, capacity planning, purchasing, scheduling and quality. The importance of operations management has increased dramatically in recent years. Significant competition, shorter product and service life cycles, better educated and quality-conscious consumers, and the capabilities of new technology have placed pressures on the operations function to improve productivity while providing a broader array of high-quality products and services. Concept Design Services was an inward looking manufacturing company which focused on complex and cyclical industrial mouldings. Since 1999, it transformed and upgraded to more profitable household products business. Right now, it is an integrated service provider that works with design houses to provide end-to-end product design, manufacturing and distribution of high-quality design homeware. Jim Thompson explained the differentiation CDS from other competitors is that CDS uses the latest, precision equipment, bought the best quality moulds, and...
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