The purpose of this report was to show a crucial understanding and application of Procedures Management principles and theories. The report will addresses the intro and definition of Businesses Management (OM), describe the nature of operation within an organization. The report will also illustrate how the businesses management function interacts with the several functional areas in a organization. The article will clarify about the characteristics of operation processes and the actions of procedure management. Moreover, the report will consider the opportunities and the trends in operation management and it will also give understanding on how operations management helps company to be successful and the way to be increasing the performance running a business environment nowadays.
Introduction
Today your competition in the business world getting higher and even more risky, they are simply competing in very different conditions than they were in a couple of years ago. To endure and achieve the target they must give attention to many factors such as quality, customer romance, efficiency or etc. and they must make an effort to figure out the ultimate way to reach the target on the business too. The brand new focus has attended to operations management in the limelight of business because this function can help the companies achieve their success as marketing and finance function do. The operations management is important that worried about producing and providing the services to customers. Now most companies attended to understand the importance of the functions to arrange all organization. This is because they have recognized the effective that operations management provides potential to improve both customer services all together and efficiency. Consider some of most today's successful companies such as Starbucks, Wal-Mart, Toyota and FedEx, these companies have achieved the world-class status just because a strong give attention to the businesses management in business.
The shoot for this article is to demonstrate the key principles and theories of procedures management and also clarify about how the businesses management function interacts with other useful within an group. The report is concerned the problem of activities on operations management and the survey will review the opportunities and the innovations in procedures management on the whole too.
Definition of Procedures Management
What is the functions management (OM)? Functions management is the activity of taking care of the resources which produce and deliver the goods and services (Slack etal. , 2010) Functions management is the business enterprise function that sensible to planning, managing, coordinating and managing the resources had a need to create a company's products and services. The operations function can be linked to other functional operations within company such as marketing, finance, human reference and etc. so it can be referred to that all efficient areas undertake procedures activities because they all produce the assistance and goods. The operations manager is the individual who supervised the production, make decision on businesses functions and regarding to joining into other efficient areas. Thus, today every company noticed that operations management is important and also decided that is the key core function to organize their corporation.
The Role of procedures Management
The role of businesses management is to build some kind of value-added in form of goods and services by changing a company's inputs into productivity as done goods and services. The actions in procedures can be divided as insight, change process and outcome. The company's inputs include human resources such as employees and professionals, information, technology IT and facilities and techniques such as gadgets, complexes or lands and materials. Then the operations system will convert the transformed resources from inputs into outputs that are goods and services which produced by company and from then on will get responses information about the activities in the procedure system.
The number below will shows the change process. For example, at the airline will movement the people and their luggage from one place to another. On the factory will changed resources of materials into raw materials products as transforming denim into jeans or transforming cotton and cloth into clothes.
Figure I: The change process
Customer feedback
Performance information
Source: Reid and Sanders, 2005.
For businesses management to be successful, it should be create or add some value in the transformation process for make the outputs are worthwhile to customers and fulfill more to customer and also help to reduce the expense of activities in the transformation process. This implies the company should be matter on value added and procedures and build both to be reliable, able to make the products and services are well worth more to customers and able to performing the activities well at the lowest cost too.
The physique below will shows how procedures management organized in an corporation and shows what procedures management is and how many other function is within an corporation. In three different organizations that illustrated that businesses management is evidently segregated from other functional areas and will subdivided itself on deferent conditions.
Figure II: Group charts for OM function in three different organizations.
District Hospital
Budget Hotel Chain
Manufacturer
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The relationship between Operations along with other Functions
The roles of procedures management function and the decision was created by operations managers interact with other practical areas running a business. This will describe the relationship between operations and other function obviously. Because so many businesses known, there are three main efficient areas in group: financing, marketing and operations as the primary supporter in their business, yet other functions also assisting an organization as well. Although these functions scope in different activities, they must interact achieve the purpose of the business and drive the business continue too.
Finance function will responsible to managing of the funds and judging the need for capital investment such as accessories or relocations, collecting money and covering make decisions on make-or-buy in corporation and also herb expansions. Fund function cannot work without understanding businesses ideas and needed. On the other hand, operations professionals cannot make the financial plans without understanding the key and approach to analyzing of financial investment as well. It is vital that both functions must understand each other and interact.
Marketing function will generates the demand for the company's goods and services by understanding customers needed and discover the best way to build and develop the new marketplaces. Sale will never be happened if they do not understand what businesses can produce or what deadline can meet or cannot and what type of customization operations to provide. Thus, the primary needed of marketing and functions work closely together and both of them are important as marketing providing the forecast of demand which procedures will produce the goods and services and mailing to customers.
Production and operations, the main liable on businesses function is to produce goods and services and deliver to customers on time. As mentioned recently, operations function will hook up with any practical areas by the operations roles.
Human resources will responsible on recruitment and labor connection and they must understand job requirement and employee skills when they hire people in any positions. The businesses managers need to understand job market movements, labor cost when selecting or lay-off and the price for training lead to efficiency on employees' management.
Information technology which co-ordinates with the computer-based information needed and permits information stream through the organization and allow procedures management to operate effectively. Generally, operations management is intensely dependent on i. t like the forecast of demands, schedule of worker, level of quality to achieved and supplier deliveries. Usually, this close marriage between businesses management and information technology will work collectively for design information network.
Accounting will consider the existing performance options, inventory management and labor standard in order to develop the price data for business. In turn, procedures managers should converse to accounting about billing information and the process improvement. To make decisions about the price management is highly rely upon accounting data that shown the partnership between two of these.
Operations Techniques have Different Characteristic
Even all operations operations are similar in the way they all transform inputs, each of them do the several things along the way and can divided by different four dimension that call four Vs of procedures which is specially important: size, variety, variant and presence.
Volume - the requirements of goods or services that procedures was produced and it is important implication for the way procedures function are structured for group.
Variety - different types of goods or services are offer by businesses. For example, Taxi Company offers a high-variety services which ready to grab customer from one location to some other location. The cost of taxi cab service will greater than other transport such as bus service because taxi cab offers high variety of routes and times to customers.
Variation - consider on how the amount of demand changes and how it effects the volume of outputs which may effects in short term as well as seasonal varieties.
Variability - make reference to how much of the operation's activities working face its customers. For example, in the restaurant French fried will standardized however the grilled steak might be uncommon, medium or well done.
High volume level, low variety, low deviation and low customer awareness are usually associated with low priced (Slack, 2005)
The Activities of functions Management
Operations mangers involve some responsibility for all activities in group which donate to the effective development of products and services. There are some basic management activities to use all sorts of procedures. (Slack, 2005)
Understanding the operation's proper performance target.
Developing and setting up an procedures strategy
Designing the operation's products, services and procedures.
Improving the performance of functions over the time.
Planning and handling the functions.
Cooperating the public responsibility.
The New Movements in Procedures Management
As mentioned recently, most businesses matter that procedures management is the key core function in firm and it constantly changing the business enterprise environment to meet the new and interesting challenges in new business world today. As increasing the global competition, developing technology into advanced level, improving job opportunities in businesses management, to relating to on environment and emphases to link the procedures function more closely with customers and suppliers.
Increased Global Competition
Today the business enterprise world changing itself is quickly into new single global overall economy which increasing competition on business across the world. Reason behind more reliable on worldwide communication and transport networks than several years ago that market was dominated by local or nationwide companies. Now, many companies develop their business to foreign market segments which is the opportunities on operations function to take a broader, show the way they are develop operation's strategy and even more global point of view for companies to stay the competitive. Also procedures function must responsible handling an organization to stay and make it through on globe's market and competition.
Technologies changes and Job Opportunities
The innovations in technology in this recent time are effect on operation management function. The increased use of it, automations and robotics are permitted to increase the quality of goods and services. The innovations technology also attended to new need on labor force and even on customer, especially on service operation (McGraw H, 2004). The business should be considered skilled staff member, empowered employees upgrading unskilled worker in all areas of procedures. Thus, this is turn into a new challenge on procedures management to changing job specialization, social-culture and increasing an understanding and information modern culture to business.
Better Quality Goods and Services
In the business enterprise environment today the higher-quality products are show up on increased global competition and the typical high-quality ongoing increasing. This is actually the new tendency on functions management to produce high-quality products but end up with the low cost.
Environment issues
Many companies today are taking on the challenge to produce the green products with environmentally friendly techniques which undertake of procedures management. These were worried about environment issues and the increased of disposal costs that happened much more than before. This is a chance on businesses function to generate an environmentally delicate production, green creation and recycle materials throughout the home based business world.
Summary
Operations management is acknowledged today as a crucial practical area which works closely as well as every organization. The fundamental role of businesses management which concentrated on the minimizing costs and it has been changed by value-added to the products and services that group provides. Some of major issues facing procedures management today are changing business environment include: achieving and sustaining high-quality of products by handling costs, reducing processing times for new goods and services, working effectively with other functions to have interaction the goals, expanding new technology into operations operations, left over the competitive, being friendly with customers and obtaining and keeping the characteristics workers and managers. Many of these issues are important to push the business to accomplish their goal and then for successful in functions management is do many of these at the level that is competition in both global and local markets.
