Operation management Essay Example | Topics and Well Written Essays - 2250 words

Operation management - Essay Example This essay states that the task of operation management team is to convert the inputs into the output in the most beneficial way. They are the real causes for the net operating profit of the organizations. Operation management team has to take care of all the processes starting from the acquisition of resources to delivering the products or services to the end user. They have to come across the tactical and strategic level of the operations. The strategic level includes deciding the structure of service networks, determining the size and location of manufacturing plants and deciding the technology of the supply chain etc. The tactical level issues are project management, plant layout, selection of equipments etc. Now a day’s, operations management is employing more and more information technology to get the work done more accurately and more effectively. This is being done to improve the organization’s respond to the five objectives of operations: speed, flexibility, de pendability, quality and cost. These are the core objectives of the operation management. The think tanks of the organization are up to date about the information technologies that can be applied to the each and every process of the operation management. The field of technology and operations management is concerned with the design, management and improvement of the processes and operating systems. The global market experiences a rapid change of technology and the companies face big challenges to compete with the world class standards in production and delivery of products and services. ... ramatically due to the emergence of a truly global economy, significant advances in information and process technology, and the continued growth of services. The Technology and Operations Management Area (TOM) focuses on value creation on a global scale through innovative product and process design, project management as well as on value capture through effective supply chain management† (Technology and Operations Management 2011). The theory of constraints (TOC) is much successful application of information technology in operations management. The TOC starts with through-put driven business policy, seven step resource management methodology through the cost/utilization capital investment technology and ends with drum-buffer-rope production activity procedure. Total quality management (TQM), just in time (JIT) and the theory of constraints are well absorbed in the field of operations management. Some of the information systems used in production and operations management are gi ven below: Inventory system: Inventory system uses techniques like just in time, ABC, first in first out, last in last out, etc. Such information is then used for reorder purposes. Stub control (used by retailers) enables the manager to retain a portion of the price ticket when the item is sold. The manager can then use it to put record about the item that was sold. Production System: The manufacturing system often produces the standardized products in large volume. The plant and machinery will have a limited capacity. The system facilitates with fixed costs, variable costs, labor costs and material costs. While producing the products, the net value and the economic value are forecasted and added to the product. Service System: The service system is more complicated as the service is not