The Nature and Importance of Operation Management
Word Count- 3019 words
Table of Contents
Chapter 1 - The Nature and Importance of Operation Management and its Key Elements
WH Smith is a British retailer, well-known and publically-quoted book retailer, and newsagent and entertainment product in the UK. Recently it was reported how Kate Swann, the former CEO for the last 10 years, has turned the company around from £135m losses to £106m profit in a decade (Holland). The reason behind this profit is the right decision of Kate Swann. Now let’s see what she did to make WH Smith profitable (Creevy).
1.1 Operation Management and its Importance
In recent years, the scope of operation management has broadened considerably. Production concepts and techniques are applied to wide range of activities and situations outside manufacturing; that is, in service, such as health care, food service, recreation, banking, hotel management, retail sales etc. the operational function consists of all activities directly related to producing goods or providing services. Operation is a function or system that transforms inputs into outputs of greater value. To ensure that the desire output is obtained, measurements are taken at various points in the transformation process and then compared with previously established standards to determine whether corrective action is needed. The essence of the operations function is to add value during the transformation process. Operation management designs the system and controls it; this includes arranging facilities, scheduling tasks, developing procedures for inventory acquisition and turnover, as well as providing corrective actions to insure that changes are made whenever it is necessary to do so (Harris, 1990, (Reprint from 1913)). So, it is easily untestable the importance of the operation management in an organization. The importance operation management is given below:
1.1.1 Understanding Tactical
Table of Contents
Chapter 1 - The Nature and Importance of Operation Management and its Key Elements
WH Smith is a British retailer, well-known and publically-quoted book retailer, and newsagent and entertainment product in the UK. Recently it was reported how Kate Swann, the former CEO for the last 10 years, has turned the company around from £135m losses to £106m profit in a decade (Holland). The reason behind this profit is the right decision of Kate Swann. Now let’s see what she did to make WH Smith profitable (Creevy).
1.1 Operation Management and its Importance
In recent years, the scope of operation management has broadened considerably. Production concepts and techniques are applied to wide range of activities and situations outside manufacturing; that is, in service, such as health care, food service, recreation, banking, hotel management, retail sales etc. the operational function consists of all activities directly related to producing goods or providing services. Operation is a function or system that transforms inputs into outputs of greater value. To ensure that the desire output is obtained, measurements are taken at various points in the transformation process and then compared with previously established standards to determine whether corrective action is needed. The essence of the operations function is to add value during the transformation process. Operation management designs the system and controls it; this includes arranging facilities, scheduling tasks, developing procedures for inventory acquisition and turnover, as well as providing corrective actions to insure that changes are made whenever it is necessary to do so (Harris, 1990, (Reprint from 1913)). So, it is easily untestable the importance of the operation management in an organization. The importance operation management is given below:
1.1.1 Understanding Tactical