Role of Operations Management Essay Example

Role of Operations Management Operations management is the design operations and improvement of systems that create and deliver a company’s products and services. In other words, “is the process of taking input such as raw material and component and turning it in to out put by adding values” (Shaikh, 2010). Any activity that relates to the management of the entire business process that produces goods and services falls into the operations category. Competition among today’s organizations has become immense and is getting tougher and tougher day by day since more new companies are starting businesses in the same industry. Whether they are from the manufacturing sector or service sector, the need for cutting the unnecessary costs, achieving maximum efficiency, and implementing operations management strategies is increasing with the passage of time. Therefore, more focus is being laid on Supply Chain Management these days by the businesses in order to set up certain operations approaches, distribution systems, and capacity layouts that not only reduce redundant costs but also provide better quality goods and services to the customers. This paper will discuss two operations approaches for each of these sectors manufacturing and service and would relate those approaches to quality control and efficiency that can be achieved by the businesses.
Operational Approaches for Manufacturing Organization There is no wonder to know that the manufacturing organizations deal with the inventory much more as compared to the service organization. The inventory includes raw materials, complementary parts, actual or finished products, and other packing materials therefore, the two most used operational approaches for by these organizations are Lean manufacturing approach and Outsourcing. Lean manufacturing is the approach that identifies and minimizes waste by adopting continuous improvement to satisfy the customer’s demands. It ensures maximum quality by examining