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Discussion: Operations Management and Operational Choices Essay

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An input, a process, and an output are all included in operations management. The procedure takes a piece of information, improves intake, and creates work. In this instance, the process continuously accepts and transforms the input to produce the output and is always correct in a strategic sense. Therefore, operation management constantly transforms the information into a value-added production by implementing the function. Operations management aims to make goods and services that meet customer needs while maximizing efficiency (Kumar, 2022). Numerous operational choices must be taken that will affect the organization’s capacity to provide goods and services that generate value for customers in the short and long term. The organization’s chances of long-term survival are significantly improved if it designs and implements its transformation system with a majority of sound operational judgments to satisfy customer expectations.

The business function overseeing the production of goods and services is operations management (OM). It entails organizing, coordinating, and managing all the resources required to produce the products and services of an organization. Two examples of inputs to the transformation process are information and materials. The transformation process has tangible inputs and produces physical or intangible results. Operations management tasks generally do not require much detail or judgment (Cole et al., 2019). Information such as labor, capital, equipment, land, buildings, materials, and data are transformed into outputs such as goods and services that generate customer value via operations management. To satisfy consumer needs, all firms must work to improve the quality of their transformation processes (Anand & Gray, 2017). Any action or collection of activities that takes one or more inputs, changes and adds value, and produces outputs for consumers or clients are referred to as a transformation process—modifications to the physical properties of the materials or the clients.

One of an organization’s three strategic functions is operations. It is crucial to carry out the organization’s strategy and ensure its long-term survival. Marketing and finance are the organization’s other two strategic priority areas. The operations strategy should support the overall organizational strategy. According to Brown et al., a 5-year Pro-forma is frequently created by businesses to help with operational planning (2018). The pro forma uses data from previous and current financial statements to forecast future events, including sales and capital investments, according to Schermerhorn et al. (2020). Operations decisions frequently include strategic decisions with significant economic and resource commitments and long-term repercussions. Decisions about tactical operations typically have a shorter or medium-term effect on the organization, require less resource commitment, and are more quickly altered than decisions about strategy. Examples of tactical choices include:

  1. Setting up quality control methods.
  2. Negotiating contracts with suppliers
  3. Inventory management.

When used to describe the idea of operational management, this definition provides a ton of helpful knowledge. Functional managers are instead concentrated on the execution of an activity to satisfy a customer requirement because there is no tangible good to ship, handle, or make. This instance of administration differs from a product’s management in a few ways. On the service side as well as the product side, managing operations is essential. Although there are innumerable factors to consider, many of which are particular to specific businesses or sectors, some fundamental operational choices provide clear examples of the mindset service management experts take into account. The location of a facility, the layout of the facility, the suitable size, and the overall efficiency of a particular area concerning cost are essential factors.

References

Anand, G., & Gray, J. V. (2017). . Journal of Operations Management, pp. 53–56, 1–8. Web.

Brown, S., Bessant, J., & Jia, F. (2018). . Routledge. Web.

Cole, R., Stevenson, M., & Aitken, J. (2019). . Supply Chain Management: An International Journal. Web.

Kumar, R. (2022). Operations management. Jyothis Publishers.

Schermerhorn Jr, J. R., Bachrach, D. G., & Wright, B. (2020). Management. John Wiley & Sons.

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