TEN OPERATION MANAGEMENT DECISIONS

Topics: Management, Supply chain management, Production and manufacturing Pages: 5 (1018 words) Published: February 3, 2015
Definitions of Operations management
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.

Operations management is an area of management concerned with overseeing, designing, and controlling the process of production and redesigning business operations in the production of goods or services. It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed, and effective in terms of meeting customer requirements.

According to the United States Department of Education, operations management is the field concerned with managing and directing the physical and/or technical functions of a firm or organization, particularly those relating to development, production, and manufacturing.

Operation Management Decisions

PRODUCT & SERVICE DESIGN
Customer Satisfaction begins with product and service design. Moreover, decisions are made in this area impact operations and the organization’s overall success. Process selection and capacity planning impact the ability of the product system to deform and to satisfy customers. Flexibility, Production time, and cost are key considerations in process design. Process selection and layout are closely related. Layout decisions are influenced by decisions made in product and service design. Product and service design typically has strategic implications for the success and prosperity of an organization. Furthermore, it has an impact on future activities. Consequently, decisions in this area are some of the most fundamental that managers must make. wps.prenhall.com

QUALITY MANAGEMENT
In Operations Management decisions quality is the highest objective, Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. Some goals of quality programs include:

Fitness for use. (Is the product or service capable of being used?) Fitness for purpose. (Does the product or service meet its intended purpose?) Customer satisfaction. (Does the product or service meet the customer's expectations?) Conformance to the requirements. (Does the product or service conform to the requirements?) Quality Management helps to maintain the quality of the product and helps to avoid defects in the product and services in the future. www.slideshare.net

PROCESS, CAPACITY DESIGN
Due to the inherent properties of the market, Companies are required to be very flexible. Each quarter new technologies, solutions and cutting edge products are introduced. That’s why it is critical to be able to quickly adapt to changes. In this case incorporating new technologies in all the processes is invaluable and helps to achieve flexibility. Process Capacity Design has the capacity to ensure meeting all the demands of the future market. www.slideshare.net

LOCATION
As it is the era of globalization and every company is trying to be a global company, It is necessary for companies to select the locations for the launch of their products as well as the location of storing an operating. Now a days most of the companies operate in many countries. To compete technologies, companies carry out researches in technologically advanced countries. Selecting better locations ensure the better future and growth in future business of a company. smallbusiness.chron.com

LAYOUT DESIGN
Layout planning is deciding the best physical arrangement of all resources within a facility. Facility resource arrangement can significantly affect productivity. Layout design is the backbone of any company. It helps in smooth flow of the company. Layout planning is organizationally important for an efficient future operations. Marketing is...
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