Week #7, Blog Entry #7:            Operations Management

 

This week we learned concepts related to operations management and its importance in maintaining a highly efficient organization. Efficiency is defined as the ability to perform a service or produce a product well at the lowest possible cost. The primary objective of operations management is to transform the company’s resources into products and/or services in the most efficient way possible, by planning, coordinating, and controlling resources to balance costs and revenue (Hayes, 2024). Successful operations management requires integrating human capital, technology, information, and company processes to create value. Key strategies to achieve operational efficiency include automation and forecasting to employ technology to streamline production, decision-making proficiency to evaluate data and trends, and persistent motivation to keep employees engaged and mitigate risks (Hayes, 2024). Customer feedback is indispensable for continuous quality improvement to produce quality products and services.

 

Management Science

Management science studies quantitative techniques to solve operational problems. It focuses on developing an understanding of operational challenges and developing potential solutions through linear programming, and productivity statistical optimization. Various techniques have been developed to increase flexibility, mass customization, and redesigning processes to increase efficiency and contain costs.

 

Strategic Decisions

Strategic decisions are decisions set by leadership that state a vision and mission for the company, setting expectations for employees, suppliers, and customers. That long-term vision and mission will have a broad scope but would help guide the operations management framework under which tactical and day-to-day operational decisions will be made (Hayes, 2024).

Tactical Decisions

Tactical decisions are short-term and narrow in scope, guided by the strategic decisions previously established by company leadership. They mainly focus on the day-to-day operations, such as the quantity of raw materials supplied, production schedules, production quantity and quality, etc. (Hayes, 2024).   

Supply Chain Management

Focuses on bringing supplies to the company and then distributing the product created by the company to consumers efficiently and at minimal costs. It requires planning and sourcing of materials from suppliers, tight control over inventory, and efficient distribution and delivery of end-products to customers (Fernando, 2024). Supply chain management needs supplier feedback (called enterprise resource planning, or ERP), and customer feedback (called customer relationship management systems, or CRM). There are various models of supply chain management including the Continuous Flow Model, Agile Model, Fast Model, Flexible Model, etc., each designed to meet different business needs (Fernando, 2024). The ultimate goal of controlling a company’s supply chain is to maximize productivity and profit while minimizing costs.

 

Data Analytics

Gathers data and uses mathematics and statistics to process data and develop patterns of consumer behavior to understand consumer segments. The data gathered and analyzed is then used for forecasting and marketing products and services. Data gathered for processing can be obtained through various methods. Barcodes and points of sale systems gather information to track sales and inventory. GPS and RFID monitor logistics and supply chain data. By leveraging business analytics, companies can optimize operations and customer satisfaction.

 

 

References:

 

Hayes, A. (2024, July 23). Operations management: Understanding and using it. Investopedia.  https://www.investopedia.com/terms/o/operations-management.asp

 

Fernando, J. (2024, July 27). Supply Chain Management (SCM): How It Works & Why It's Important. Investopedia. https://www.investopedia.com/terms/s/scm.asp

 

 

 


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