Operation management explains the processes that a product or service passes through during its production. It deals with the design, manufacture, services, and supply of the product. Operations management deals with the procedures that ensure that a firm delivers the desired product and service to the client.
It considers the concepts of quality, efficiency, and responsiveness to customers (Mahadevan, 2010). These concepts relate to the methodologies of operation management, which includes; operating budget, productivity enhancement tools, peripheral operations, and open line of communication within the staff.
This paper reflects on the relevance and the practical applications of concepts and methodologies of operation management.
The operating budget finances the continued activities of the organization. The money kept under the operating budget primary function is to fund the activities of all units in the business. In addition, the productivity enhancement tools cut down the costs and concurrently, increase the profits.
This makes the products relatively expensive for the customers. The organization makes use of pie charts, flow charts and the other presentation models to enhance better understanding. Moreover, every employee in the organization is accountable for an effective operations management (Mahadevan, 2010).
For this reason, the organization uses open line communication between the different departments. This process is virtually important to everyone within the firm, both the employees and the clients. Therefore, these methodologies relates to the concepts of quality, efficiency, and responsiveness to customers.
Operation management is of significant benefit to the organization. When the business effectively uses its available resources and work force in production process, it will meet their clients’ requirements. Therefore, the management must be creative, energetic, and innovative to improve the production process.
This will increase the company’s profits because the customers will be satisfied due to the high quality of products and services. The organization also cuts on the cost of production.
Mahadevan (2010) explains that operation management provides a background to the future innovations by supporting new ideas and knowledge of employees within the business. Therefore, the operation management is of importance to the success of the business.
The operation management is a chain of activities that all depend on each other for successful outcome. The processes are inter-related, therefore, operation management has to effectively check and monitor these activities.
This is the principal disadvantage, the marketing functions, finance, procurement, production, distribution and all other activities has to co-relate well for a successful completion. If the processes are not in place to work together, then the process will fail.
It is of value to have a clear understanding of this topic. Operation management is a wide topic that covers an important part in any organization (Mahadevan, 2010). If ignored, then the management must prepare for low profit margins and customer dissatisfaction.
Finally, the concepts and methodologies discussed above apply to all working environments. Importantly, the business responsiveness to customer satisfaction is vital. The organization must work with the aim of meeting the demands of their clients.
Again, the methodologies involved gives more credit in meeting the clients satisfaction. On the other hand, if these concepts and methodologies are not applied, the business is at a risk of customer dissatisfaction and lack of production. This affects the profit profile of the business, as their profits decreases.
Anyone recommending these concepts and methodologies of operation management ought to present them as critical requirements in an enterprise. For a less knowledgeable audience, this topic is an inclusive monitoring of all the processes that a product or a service undergoes to completion.
Reference
Mahadevan, B. (2010). Operations management: Theory and practice. Upper Saddle River: Pearson.