Operation Management
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Review chapter one
Definition of Operation Management and Supply Chain
A business organization consists of three major parts, finance, operation, and marketing. In finance refers to how the business pulls up resources to fund the business. Igata (2019) suggest that operations refer to the functionality and converting raw materials into finished goods and or services. In marketing, it is the other face, which involves making sure the goods and services reach the final consumer at an affordable price. It is the element of engaging customers.
Similarities and differences between production and services operations
Production of goods involves creating products, for instance, bread, canned vegetables. Tangible while service is the creation of non-tangible production such as shaving, teaching process, and nursing. Comparison of goods and services can be made through the degree of customer contact; many services have high customer contact; for instance, doctors must have direct communication with their patients. While in good, there are low cases of having to interact directly with the customers. For instance, consider a customer buying product from the supermarket is likely not to know who brought the goods to her/his depose. Labor content of the job; in most cases, service has high job engagement levels. Uniformity of inputs; goods is easy to measure the quantity of input required to make specific goods. It is not easy to quantify the total amount of input required to come up with a specific amount of service under service. For example, it is hard to measure patient care levels that will satisfy a group of patients. Other factors to consider when making comparison include; quality assurance, inventory, wages and ability to patent (Watanabe, 2020)
Importance of learning operation management
Mahmoud (2019) argues that one of the primary reasons is, business requires management skills. Many employers are not just seeking experts in professional careers; they need graduates who understand operation management in a business. Management is the engine for any business. Working together in an organization indicates that each person understands their role. It becomes meaningful, productive, and much success when everyone understands the role of each person. It makes exchanging information easy and encourages collaborative decision making. Operation management is the basis of getting to understand the supply chain.
Three major functional areas of an organization and their relations
There are three primary functions of a business: operations, which is the management work. Finance involves pulling up of funds to run the business. Marketing and sale have activities such as advertising, interacting with customers, setting prices (Ouyang, 2020).
Aspects of process management
According to Nara (2020), it is divided into three parts; the Upper management process involves the top management level where all critical decisions regarding the entire business are made. Under this category, the operational process determines the value stream, such as purchasing raw materials, marketing, and distribution. Supporting process management. It refers to other support management levels that make operations smooth they include; accounts, administration
Operations function and the nature of operations managers job
An operations manager has a role in appraising production and schedule activities i.e., time management with the organization operations. He makes decisions by use of models, quantitative methods, analysis of trade. Makin priorities, code of ethics, and use of models to make decisions (Nara, 2020).
Reason to manage supply chain
Ouyang (2020) reason out that a good management in the supply chain will ensure inventory is not short in supply and not oversupplied. Deliveries are made on time. The quality of good and services supplied are in good standing.
Review chapter two
Ways that business organizations compete
According to Mahmoud (2019), business competition has different roots: Pricing of products; same product in the market but with different price tag. Delivery time aspect, and goods and service modification i.e., unique characters.
Reasons for business organization failure
Ignoring operation strategies. Failing to take advantage of strength and opportunities, also foaling to recognize competitive threats. Emphasizing on short term goals ad neglecting long term goals. Concentrating on products, goods, and services design rather than the improvement of the product and services. Neglect of capital and human resource investment. Poor communication and cooperation skills among different functionalities in the business. Lastly, ignoring customer voice about the product and services (Watanabe, 2020).
Definition of mission and strategy and their vital role
Igata (2019) defines a mission statement as a roadmap that an organization chose to follow. It gives reason for business existence. Strategy refers to plans that the organization has that aim at achieving its goals. Strategies act like a guide that will break the barrier to the success or downfall of a business.
Comparison between organization strategy and operation strategy and their importance
The two concepts have some relation and differences. For organization strategy, it majors on who allocates employees to handle definite functions; it involves setting up a chain of command from top management to subordinate level, assigning administrative roles and duties, and forming interdepartmental communications. Under operation strategy, it focusses on how employees get their job done. The human resource manager and the executive managers supervise the organizational features of a business. Department managers are responsible for handling the operation task and their staff (Watanabe, 2020).
Time-based strategies
Takagi (2019) has it that, it refers to strategies meant to reduce the time consumed in completing the task. In a business environment reducing time has an impact on reducing the cost of production. High productivity rate is observed. Marketing becomes efficient as it is fast, customer service is improved customer likes a waste of their precious time.
Definition of productivity and its vital role to organization and countries
Productivity is the measure of how useful a resource(s) is/are. It is expressed n the ratio of output to input. Productivity measures have the role of tracking an operation unit’s performance regarding time and used to scale the performance of an entire industry, region, and country at large. For instance, countries believed to have high productivity have high standards of living. With increased productivity completion rise resulting in the provision of quality products in the market. High levels of productivity act as security to firms and business as it might be difficult for other emerging business to replace their position (Mahmoud, 2019).
Factors affecting productivity
Ouyang (2020) outline factors affecting productivity is be: Method; if it is modern, there is high productivity compared to traditional production methods. Capital: organizations with more capital can expand their production levels example, opening several branches. Technology; advanced technology has a good return on productivity. Management of good management that makes collaborative decisions have a high chance of increasing productivity. The quality of goods and services offered can also guarantee productivity growth.
Question 1
Productivity = output /input
- 2: 3765 square meters per day
- 3: 4915 square meters per day
- 4: 6309 square meters per day
3765/2= 1883
4915/3 = 1638
6309/4 = 1577
The crew size with the best productivity per worker is 2: 3765 square meters per day. It has the advantage of using a few workers to cover a large area in a day.
Question 2
Productivity is essential to implementing the strategy of low cost. The higher the productivity ratio or percentage, the lower the cost of output in operation. In business, productivity ratios are used in the planning workforce, schedule the equipment, and financial analysis.
Question 3
For a crew size of 5
4 = 6309
5 =? which is (5 × 6309) ÷4 = 7886
References
Igata, H., Yamanouchi, Y., Sajiki, A., Soya, H., & Usui, S. (2019). U.S. Patent Application No. 16/233,265.
Mahmoud, A., Fath, H., Ookwara, S., & Ahmed, M. (2019). Influence of partial solar energy storage and solar concentration ratio on the productivity of integrated solar still/humidification-dehumidification desalination systems. Desalination, 467, 29-42.
Nara, E. O. B., Sordi, D. C., Schaefer, J. L., Schreiber, J. N. C., Baierle, I. C., Sellitto, M. A., & Furtado, J. C. (2019). Prioritization of OHS key performance indicators that affecting business competitiveness–a demonstration based on MAUT and Neural Networks. Safety science, 118, 826-834.
Ouyang, S., Xiang, W., & Lei, P. (2020). Stand structure and mass-ratio effect more than complementarity effect determine productivity in subtropical forests. In The Role of Agriculture in Climate Change Mitigation (pp. 120-128). CRC Press.
Takagi, H., & Tamura, N. (2019). U.S. Patent No. 10,177,971. Washington, DC: U.S. Patent and Trademark Office.
Watanabe, K., Morita, K., & Hashiguchi, T. (2020). U.S. Patent Application No. 16/668,053.