Operations management involves planning, organizing and supervising processes and making the necessary improvements for greater profitability. Adjustments in daily operations must support the company's strategic objectives, and are therefore preceded by in-depth analysis and measurement of current processes. Operational efficiency refers to the ability of a commercial company to produce and deliver products and services to customers in the most cost-effective way possible (Case, et al. In trying to produce the products as cost-effectively as possible, the trading company must also ensure that the products and services meet the highest quality standards.
Operational efficiency can be achieved by streamlining the company's core processes to respond to constantly changing market forces in a cost-effective manner. The best way to achieve operational efficiency is to work hard to minimize redundancy and waste and, at the same time, take advantage of the resources that contribute most to its success, employ the best available workforce for the organization, implement the latest technology and use the best business processes. Operational effectiveness refers to the part of the organizational activity that deals with having functions that work well. These functions of the organization must work together and fit well together to effectively implement the organization's strategy.
It involves a series of practices that help the organization to i) better use the resources at its disposal, ii) better implement its processes and iii) fulfill its mission and objectives. Many management experts such as Michael E. Porter said that organizational success requires both operational effectiveness and the right strategy. In a nutshell, operational efficiency is about increasing the functional performance of the organization.
To achieve this, managers coordinate and control functional performance within the organization, measure and improve the processes that are under their control, and complete the circle by taking advantage of these improvements to enrich functional effectiveness. One of the most important concepts of operations management is operational strategy. Every business company needs to formulate and implement an appropriate strategy to achieve anything. Without a proper strategy, the organization's valuable resources will be wasted.
Operational strategy refers to the methods that companies use to achieve their objectives. By developing appropriate operational strategies, a company can design and implement systems that are efficient and effective in using resources, people and work processes. From an ecological point of view, operational sustainability refers to the company's ability to use natural resources at the current rate without exhausting the resources on which it depends. From a social point of view, operational sustainability refers to the ability of all people in a society or of all companies in a region to access equal or equal resources.
From an economic point of view, operational sustainability refers to the impact of the commercial company's operations on other organizations operating in the region and to the company's ability to continue and thrive in the future. Operations management, as a field, deals with the production of goods & services. It is defined as decision making in the operations function & integration of these decisions with other functions. The unifying feature of the service & manufacturing operations is that both can be seen as transformation processes.
Operations managers deal with two basic fields of activities:. The first range of tasks to be solved is the design of the operating system, the second is then the planning and control of operations (Dilworth, 199. The design of the operations system includes a large number of tasks). One of the most important decisions that are part of the organization's strategy and whose incorrect implementation can influence its competitiveness, costs, sales and profits, and the decision about the location of facilities for manufacturing or services. The factors that influence the decision on the location of the facilities are of three types:.
The subsequent task in the field of operating system design is to make a decision about the design of the facilities and the design of the operating process. Different operations, different conditions and objectives require alternative forms of process design. To ensure that the plans of the operations subsystems are met, the operations manager must exercise control by measuring the actual products and comparing them with the planned operations management. Services: & of manufacturing; (operations directed to the customer); (adjusted operations: concerned with eliminating waste (without adding value) activities in every part of the operations;% 26 of the business; integration of operations with other functions; environmental concerns, management of SC, & globalization of operations.
Operations managers and their reports must make decisions regarding scheduling, sequencing, load, and work assignments. The field of operations management has evolved over time to keep pace with technology and human behavior. Degree of interaction & Personalization — uncertainty & Variety introduced in operations by customers. Operations managers are responsible for making important decisions about product development, process and design decisions, site location and capacity.
In relation to the Kaizan concept, it is up to the operations manager to guide his employees through the process. This inventory system is also overseen by the operations manager and, like customer service, it is necessary to allow minimal waste in order to implement successful future planning. Supply chain strategy is an extension of operations strategy that considers not only the company but also the strategies of its supply chain partners. Your work should help the reader to understand how each one of them interrelates with the others and how, if properly applied, they will help any organization to succeed.
It is up to the operations manager to monitor and keep abreast of this operation to allow production to be continuous. For the Kaizan concept, it is important to establish the theories of teamwork, personal discipline and improved employee morale, as well as the establishment of quality circles and suggestions for improvement. With this approach, they protect their intellectual property (&) and their technological knowledge only in those areas where they plan to create a competitive advantage (core competence areas). Operations management serves as an organization's engine room and plans and drives manufacturing and services.
These four D's come together in a constant feedback loop with continuous iterations to fine-tune their operation and take their inputs and transform them into the desired outputs. .