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MANAGEMENT POLICY Essay, Research Paper

OPERATION AND OPERATIONS MANAGEMENT

All organizations have operations.?

A manufacturing company may conduct operations in a foundry, mill, or factory.

Our interest is in the management of operations, or operations management (OM), including the usual management cycle of planning, implementing, and monitoring/controlling. The driving force for OM must be an overriding goal of continually improving service to customers, where customer means the next process as well as the final, external user.

 Since there is an operation element in every function of the enterprise, all people in all jobs in every department of the organization should team up for improvement of there own operations management elements.

Teaming Up with Customers

What happens when suppliers and customer are disconnected? Consider design work, for example. Whether we speak of goods or services, time- and distance separation in the supplier-customer connection invites trouble.

Question: ?What?s your Job??

Question: ?But isn?t your job to serve the customer??

In grocery stores, where the supplier-relationship is immediate, the operations manager system is hard pressed to maintain a customer focus. The customer is the next process, or where the work goes next.

A buyer?s customer is the associate in the department to whom the purchased item goes; a cost accountant?s customer is the manager who uses the accounting operations-where the design will be produced or the service provided. It is also clear that throughout the organization, people not only have customers, they are customers. Let?s turn our attention to what customers want.

A Short List of Basic Customer Wants

The requirement is a recipient?s or customer?s view of a good or service. A close partnership with the customer?s actual requirements. A close partnership with the customer helps create good specifications, increasing the supplier?s ability to fulfill the customer?s needs.

What else do customers want? Customers have six requirements of their providers:

High levels of quality.

High levels of service.

Low costs.

OPERATIONS STRATEGY

An organizational commitment with wide ranging effects, such as continuing improvement in meeting customer needs, is called a strategy. Strategy itself is necessary because of competition, and successful strategy ensures that company strengths match customer requirements.

Integrated Business Strategy

To accomplish its aims, the business team must plan strategy in all four-line functions. A comprehensive strategic business plan deals with issues affecting the whole organization: employees, markets, location, line of products and services, customers, capital and financing, profitability, competition, public image and so forth.

OM strategies should be consistent with the business plan, but with a narrower focus:

Capacity (operating resources): front-line and support people, information, equipment and tools, materials, location (space). Products, processes, methods, and systems: Strategies might include level of investment in product and process development, standardization, and manual versus automated information processes.

Outputs: Quality, cost, lead-time, flexibility, variation, and service.

Operations Managers translate that business strategy into an operation strategy of developing two new fitness-related services, which will maintain high utilization of staff and space, as substitutes for two other services that are declining in popularity.

1. Companies A and B. Two companies, both manufactures of shoelace extender, have the same dominant business strategy: rapid customer service.

Although the business strategy is the same at both companies, Company B?s operations strategy will provide superior customer service and overall success.

Distinctive competencies might be obvious to customers; fast service, very clean premises, and superior quality are examples. All have dependably high quality. Disney offers customer service unparalleled in its industry. Developing distinctive competencies helps retain customers and invites new business. The strategic factors that best describe competitive success for any company quality, efficiency, continuous improvement go to the heart of operations management. It needs customer- and quality centered operations management. Principle of Operations Management ? As Strategy

Many diverse organizations, in both goods and services, are adopting operations management strategies. Listed is a 16-point set of the principles of OM, that is the principles of employee- and team-driven, customers-centered continuous improvement in operations management. Operations strategy in the firm is comparable to a sports team?s game plan. The first group, formulation of operations strategy, must account for customers, the company, and competitors. Operations Strategy-Formulation

Customers:

Become dedicated to continual, rapid improvement in quality, but cost, lead-time, flexibility, variability, and service.

Company:

Company:

Operations Strategy-Implementation

5. Cut the number of product or service components or operations and the number of suppliers to a few good ones.

6. Organize resources into multiple ?chains of customers,? each focused on a product, service, or customer family; create cells, flow lines, and ?plants-in-a-plant.?

Capacity:

Maintain and improve present equipment and human work before thinking about new equipment automates incrementally when process variability cannot otherwise be reduced.

Processing:

Cut flow time (wait time), distance, and inventory all along the chain of customers.

Cut setup, changeover,

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