Chapter 1 – Hightone Electronics, Inc.
1) Operations management is critical to the success of a business because it is the business function that plans, organizes, coordinates, and controls the resources needed to produce a company's products and services. It is the central core of the entire company and major business functions feed off of operations management. The role of operations management is to transform a company's inputs into the finished goods or services. Operations management is also responsible for organizing all the resources needed to produce the final product. If operations management is not functioning properly, or have the right team in place, the business will not be a success. Developing an Internet-based business would require different operations consideration for HEI because it is literally changing the way they are doing business. That means they are changing how their business is run. The transformation process of company's inputs to finished goods would change. Their tactical and strategic decisions would be revised. Here are some different operations consideration that HEI would have to consider with new addition of internet based company: •
How does HEI continue reputation of high quality and high service •
What are HEI's unique features that make it competitive amongst other internet based companies •
What is the expected demand of product now that it can be ordered over internet •
Will HEI need new facility/additional space in facility in order to keep up with expected demand •
What additional jobs will be needed throughout HEI in order to accommodate new orders •
Will an extra shift need to be added in order to keep up with new orders •
Will there need to be a new department added to maintain new website and new technology •
Will catalog orders be phased out?
George Gonzales was correct in his assessment that it will not be business as usual at HEI with new Internet-based division of HEI. 2) In order for HEI to continue its...
Please join StudyMode to read the full document