Cost leadership Cost leadership refers to the strategies to produce goods or services at the lowest possible cost whilst they are still acceptable to customers.
Operations Management - Explained: In these sectors, operations managers will focus on obtaining the materials that go into the making of the product inputs and the actual production processes. The precise tasks of an operations manager depend in large part upon the nature and size of the enterprise, but she needs a wide range of business and interpersonal skills to succeed.
Goal-setting Operations managers set goals and objectives and establish policies for various departments in the organization. Businesses adopting a cost leadership strategy commonly have standardised products The car manufacturer Kia is well known for being a cost leader.
Operations management refers to the administration of business practices to create the highest level of efficiency possible within an organization. Cost leaders and differentiation can exist in the same industry.
Other businesses supply intangible non-physical products to customers. The strategic role that operations management plays in successful organizational performance can be seen as more organizations move towards managing their operations from a value chain perspective which means the entire series of organizational work activities that add value at each step beginning with the processing of raw materials and ending with the finished product.
It also shares ideas across the business about how to improve processes or achieve cost savings to bring about best practice. Some businesses make tangible products known as goods. This process is called value adding.
Interdependence with other key business functions The operations department brings together the materials and the activities needed for the production of goods and services to meet consumer demand.
For example, in the car industry. Operations managers cooperate in high-level decision making with other top executives of an organization, such as the president, chief financial officer and chief executive.
In this way the business will be profitable. Operations management refers to the design, operation and control of the transformation process that converts such resources as labour and raw materials into goods and services that are sold to customers. However, it is important that customers see that they are gaining value for moneyotherwise this strategy will not see long term rewards for the business.
Therefore, it can be seen that the Operations department carries out a coordinating role in the business to ensure that the prime function main activity of the business is carried out efficiently and effectively so that consumer demand is met.
Businesses can differentiate themselves from others by changing obvious aspects such as price, quality or performance but also in more innovative ways such as changing the technology used in the process, speeding up delivery time and building alliances.
Today, every successful organization recognize the crucial role that operations management plays as part of the overall organizational strategy to establish and maintain global leadership. This is called a service and the businesses that provide these are found in industries in the tertiary sector.
For example, operations manager duties include sales forecasting and planning of sales promotions. Human resources tasks include determining needs, hiring employees, overseeing assignment of employees and planning staff development.
In these industries, the operations manager will focus on customer service and after care. Financial Management Operations managers play a key role in budgeting, controlling costs and keeping the organization on track financially. Management of Resources Operations managers play a leading role in managing both raw materials and personnel.
And just as every organization produces something ,every unit in an organization also produces something. The operations manager will liaise with the other department in the following ways: By reducing the costs of production and distribution, a business will be able to gain an advantage over competitors.
There are various reasons which makes operations management important. The tertiary sector is where the output is sold to the customer. They use methods such as cost-benefit analysis to improve efficiency.
They facilitate communication between employees and departments. Oversight of inventory, purchasing and supplies is central to the job. The operations department is responsible for acquiring the inputs and devising the best production methods so that value adding occurs in the most efficient and effective way.
For example, airlines will try to differentiate their product so as to attract consumers. Their management of the supply chain and other resources helps minimize costs of production. In cooperation with other managers, they help establish procedures and put them into effect.The belief that the people had was the strategic planning by the top management was the only important role, the role of the operations managers were neglected.
As the business environment became more and more challenging, the companies started to understand the importance of the operations managers. While operations management is focused on the production of goods and/or services in an organization, its importance to the overall organization cannot be underestimated.
When an organization's. All that art and science; would not explain clearly the importance of the operations management in a post-industrial period. The uncertainty of the consumer’s demand and supply of resources are.
Importance of Operations Management: Operations management is responsible for managing activities that are part of the production of goods and services. Their direct responsibilities include managing both the operations process, embracing design, planning, control, performance improvement, and operations strategy.
The role and importance of Operations Management in an organisation is very wide and can not ignore.
The main roles are planning and design, operation and control. Planning and Design: It is the first level of procedures of operations management in .Download