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POM Assignment

Operations management is concerned with converting materials and labor into goods and services as efficiently as possible. It aims to balance costs and revenue to achieve the highest profit. Operations management involves planning, controlling, and supervising manufacturing, production processes, and service delivery across all sectors and industries. The goal is to maintain and increase business efficiency through activities like quality assurance, process improvements, and effective resource use.

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Florence Tresvalles Altiche
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114 views

POM Assignment

Operations management is concerned with converting materials and labor into goods and services as efficiently as possible. It aims to balance costs and revenue to achieve the highest profit. Operations management involves planning, controlling, and supervising manufacturing, production processes, and service delivery across all sectors and industries. The goal is to maintain and increase business efficiency through activities like quality assurance, process improvements, and effective resource use.

Uploaded by

Florence Tresvalles Altiche
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

OPERATIONS AND PRODUCTIVITY

Production is a process or procedure developed to transform a set of input elements into a


specified set of output elements in the form of finished products or services, whereas
productivity is an efficiency concept that gauges the ratio of outputs relative to inputs in a
productive process. Productivity is one of the major concerns of managers as high productivity is
essential to survive in a competitive environment. Productivity is of two types - total
productivity and partial productivity. The problems in measuring productivity, especially that of
the knowledge workers were also discussed in the chapter. Operations management is the
application of concepts, procedures and technologies by managers to improve the process of
transformation of resource inputs into outputs. The effectiveness and efficiency of an
organization depends on how effectively and efficiently operations are managed. The tools of
operations research are of special interest to managers of production and operations, as they
help the managers increase efficiency and profitability of the organization. Operations research
and linear programming are two mathematical approaches used for optimizing operations. The
application of operations research techniques to complex problems of an organization take into
account the total system that influences the decision-making process. The data is presented in a
quantified form to the extent possible, and this helps managers to arrive at the best means of
achieving the goals.

2. WHAT IS OPERATIONS MANAGEMENT

Operations management (OM) is the administration of business practices to create the highest
level of efficiency possible within an organization. It is concerned with converting materials and
labor into goods and services as efficiently as possible to maximize the profit of an organization.
Operations management teams attempt to balance costs with revenue to achieve the highest
net operating profit possible.

3. ORGANIZATION TO PRODUCE GOODS AND SERVICES

Operations is one of the three functions that every organization performs. To create goods and
services, all organizations perform three functions. These functions are the necessary
ingredients not only for production but also for an organization’s survival. They are:

- Marketing, which generates the demand, or at least takes the order for a product or service
(nothing happens until there is a sale).

- Production/operations, which creates, produces, and delivers the product.

- Finance/accounting, which tracks how well the organization is doing, pays the bills, and
collects the money.
4. THE SUPPLY CHAIN

A supply chain is a network between a company and its suppliers to produce and distribute a
specific product to the final buyer. This network includes different activities, people, entities,
information, and resources. The supply chain also represents the steps it takes to get the
product or service from its original state to the customer.
Companies develop supply chains so they can reduce their costs and remain competitive in the
business landscape.

5. WHY STUDY OM

Operations management is the process that generally plans, controls and supervises
manufacturing and production processes and service delivery. Operations management is
important in a business organization because it helps effectively manage, control and supervise
goods, services and people.
Operations management cuts across every sector and industry as it may concern. OM finds use
in every business though some might not be obvious. In health sector, operations management
ensure there is proper health delivery with the right instruments at the right time. It also helps
people like nurses, doctors, surgeons, and other health officers deliver timely service. When
something goes missing, a technical and savvy individual knows what is at fault.
For a production or manufacturing company to be successful, OM is major unit that must first
stand. Take an oil and gas company for example, product has been discharged by ship to the
reservoirs in order to be made available for a large amount of customers. OM sees to the
effective delivery of the products and also plans and schedules what and how must be done.
With OM, people achieve more and productivity is increased.

6. WHAT OPERATIONS MANAGERS DO

Operations managers oversee the organizational activities of businesses, government agencies,


non-profit groups, and other organizations. These professionals are talented managers and
leaders. They might support operational leadership in a variety of departments from finance and
IT to human resources and accounts payable. At both large and small organizations, operations
managers supervise, hire, and train employees, manage quality assurance programs, strategize
process improvements, and more. Operations managers are ultimately responsible for
maintaining and increasing the efficiency of a business, agency, or organization.

7. THE HERITAGE OF OM

OM is also an academic field of study that focuses on the effective planning, scheduling, use,
and control of a manufacturing or service firm and their operations. The field is a synthesis of
concepts derived from design engineering, industrial engineering, management information
systems, quality management, production management, inventory management, accounting,
and other functions. The field of OM has been gaining increased recognition over the last two
decades. One major reason for this is public awareness of the success of Japanese
manufacturers and the perception that the quality of many Japanese products is superior to that
of American manufacturers. As a result, many businesses have come to realize that the
operations function is just as important to their firm as finance and marketing. In concert with
this, firms now realize that in order to effectively compete in a global market they must have an
operations strategy to support the mission of the firm and its overall corporate strategy.

8. OPERATIONS FOR GOODS AND SERVICES

Operations management involves managing business processes that occur during the
conversion of inputs, which include raw materials and labor, into outputs in the form of goods
and/or services. From an operations perspective, then, goods and/or services are the creation of
value that consumers desire or expect. In this regard, goods

9. THE PRODUCTIVITY CHALLENGE

The creation of goods and services requires changing resources into goods and services. The
more efficiently we make this change, the more productive we are and the more value is added
to the good or service provided. Productivity is the ratio of outputs (goods and services) divided
by the inputs (resources, such as labor and capital) The operations manager’s job is to enhance
(improve) this ratio of outputs to inputs. Improving productivity means improving efficiency.

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