Thursday, December 19, 2019
Operations Management and the Importance of...
Introduction Operations management is the department responsible for overseeing the transformation process through which company resources (e.g. land, labor, capital, and/or customers) are converted into goods and services. It is the operation managers responsibility to ensure that products being manufactured meet specifications of quality and design, that they are produced according to schedule, and that this done at minimum cost to the company. The magnitude of this task requires that the operations manager stay in constant communication with numerous other functional departments of an organization. There are six critical phases of production for which operations management is responsible: (1) service or product design, (2) productâ⬠¦show more contentâ⬠¦At this stage the company must decide how they define quality, or rather what their quality standards will be. The level of quality is greatly dependent upon the marketing segment being targeted. For example, a segment that is very price sensitive is not likely to make purchases with a high concern for quality. Therefore, the company may choose to manufacture a product with less expensive materials. However, it is generally more profitable to offer higher-quality products since they can justifiably be sold at higher prices. Total quality management (TQM) is a system that attempts to achieve zero-defects in its products from production design all the way through the production process. The idea behind TQM is that the company will save more time and money (both critical resources) by creating a high quality product and not having to concern themselves with repair, warranties, returned products, discounts, recalls, and other poor quality induced costs. Prevention costsÃâ"such as quality inspections, higher cost materials, effective machinery and production processesÃâ"are generally less than the accumulated costs to the company resulting from a poor quality product. Quality management, therefore, begins with product design and continues into production planning. After determining what the quality standards for the company are, the operations manager must address two essential questions regarding production orShow MoreRelatedOrganizational Development Strategies Interventions At The Franklin Company764 Words à |à 4 Pageshow to fix things. No matter what level of professionalism is involved, conflict is inevitable. For example, there are several issues that hinders the departments communication, collaboration and trust. In order to implement change, all three key element need to be present but they are often hidden. 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