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Operations Managment

Operations Managment

The essence of the operations function is to add value during the transformation process. The greater the value added the greater the amount of funds available for the organization to improve its goods or service, invest in its facilities and equipment, paying employees and profit.

The extremely competitive nature of the global business environment requires companies to produce high quality goods and services in the most efficient way possible. Few defects, fast production, low costs, excellent customer service, broad market reach, innovative products and processes, less waste and high flexibility are all objectives that add value to the goods or services being produced. Companies pursue these objectives to maintain a competitive advantage. Moreover, managers understand that the level of efficiency that a company aspires to in the production of goods or services affects its long term ability to address the needs of its customers.

Operations Management is one of the basic functions of the organization. It is concerned with managing the systems or processes that creates goods or services. It also involves the configuration of resources combined for the provision of goods or services in the form of manufacture, transport, supply or service and the creation of goods or services involving transforming or converting inputs into outputs.

The following areas are covered in the Operations Management pillar:

Forecasting.
System Design (capacity planning, process selection, facility layout, design of work systems and location planning and analysis).
Quality Management
- Internal Quality Control Management.
- Third Party Quality Control Management.
- Supplier Qualification and Evaluation.
Supply Chain (Customer Service, Transport Decisions, Inventory, Location, Organizing and Control, Planning, Resource Leveling).
Project Management
1. Lean – 6 Sigma – NPD – Assets.
2. Cost Saving.
3. Capacity Increase.
4. Refurbishment.
5. New Technology.
Energy Saving Initiatives.

Forecasting

Forecasts play an important role in the planning process because they enable managers to anticipate the future so they can plan accordingly. Forecasts affect decisions and activities throughout an organization such as accounting, finance, human resources, marketing, budgeting, capacity planning, sales, production, inventory, personnel, purchasing and more. Most of forecasts result decisions which will have consequences in other areas of the organizations. Therefore, it is important that managers coordinate their decisions. Forecasts can be used to plan the system or to plan the use of the system. It is not an exact science. Forecast requires a skillful blending of art and science. Corporate Clinic will help you generate reliable, timely, accurate, meaningful, simple and cost effective forecasts.

Quality Management

Quality is the ability of a product or service to consistently meet or exceed customer expectations. Successful management of quality requires that managers have insights on various aspects of quality. These include defining quality in operational terms, understanding the costs and benefits of quality, recognizing the consequences of poor quality and recognizing the need for ethical behavior. Corporate Clinic can help you supervising the following areas:

Internal Quality Control Management.
Third party Quality Control Management.
Supplier Qualification and Evaluation.

System Design

System Design includes capacity planning, process selection, facility layout, design of work systems and location planning and analysis. Satisfying the customer begins with capacity planning and process selection. Flexibility, production time and cost are key considerations in the process design. Process selection and layout are closely related. Layout decisions involve the arrangement of the work place which affects the flow of work through a system and impacts productivity, cost and flexibility. Capacity location decisions influence operating costs and the ability to respond to customer demand. Location decisions also impact transportation costs, labor availability, material costs and access to markets. Work design focuses on the human element in the production systems. Increasingly, managers are realizing that workers are a valuable asset and can contribute greatly to the organization’s success. Strategic planning is beginning to incorporate employee participation to help improve production systems. Design decisions have strategic significance for business organizations. Many of these decisions are not made by the operations managers. Nonetheless, because of the important links between operations and strategic area, it is essential to the success of the organization to involve all of the functional areas of the organization in design decisions.

Supply Chain

Supply Chain Management refers to management of all of the functions, facilities and activities both within and external to a business organization, that make up a value chain. The sequence begins with basic suppliers of raw materials and extends all the way to the final customer. Facilities include warehouses, factories, processing centers, distribution centers, retail outlets and offices. Functions and activities include forecasting, purchasing, inventory management, information management, quality assurance, scheduling, production, distribution, delivery and customer service.

Project Management

Projects are unique and one time operations designed to accomplish a specific set of objectives in a limited time frame. Projects may involve considerable cost. Some have a long time horizon and some involve a large number of activities that must be carefully planned and coordinated. Most are expected to be completed based on time, cost and performance targets. To accomplish this, goals must be established and priorities must be set. Tasks must be identified and time estimates made. Resource requirements also must be projected and budgets prepared. Once under the way, progress must be monitored to assure that project goals and objectives will be achieved. Projects enable organization to focus its attention and concentrate efforts on accomplishing narrow set of performance objectives within a limited time and budget frame-work. Corporate Clinic can help you manage projects such as the following:

Lean – 6 Sigma – NPD – Assets.
Cost Saving.
Capacity Increase.
Refurbishment.
New Technology.

Energy Saving Initiatives

Using more energy than necessary to provide the goods and services we consume diverts scarce economic resources from potentially more productive activities. In this way, improving energy efficiency may lead to increased economic productivity. The existence of an energy efficiency gap would suggest that some energy users are consuming more energy than they would in the absence of barriers that impede the adoption of energy efficiency improvements. This implies that investment in energy efficiency is less than optimal. Consuming energy at a greater than optimal level may also have a negative impact on other energy customers because the costs to supply energy, and the price at which it is sold, may be inflated, increasing energy costs for everyone.