Operation Management Essay

To be able produce specialized managers capable of fulfilling strategic tasks within business and government enterprises the need for the practice of operations management cannot be forgone. Operations management is very significant in business operations since it forms the heart of the organisation by controlling the system of operation. Operations management deals with the design, operation, and enhancement of the systems that generate and deliver a firm’s primary products and services. Like marketing and finance, operations management is a well-designed field of business with clear management responsibilities. Panasonic Corp. is a company in which produces various electronic components such as Audio, Video, Televisions, Information and Communication, Semi-conductors and other Electronic Components. In a business entity like Panasonic Corp. the use of operations management is very essential in every framework of the company’s activities. Panasonic Corp. uses operations management to ensure and maintain competence and effectiveness in the organisation. Efficiency in Panasonic Corp. s concerned with how well resources such as individual expertise and inputs are put in use irrespective of the reason for which they were deployed in the organization. The company through its performance ensures that the main objective for its establishment to generate profits and maximize shareholders value is realized. The company reduces its cost of production by ensuring that tangible and intangible possessions are not over stretched or wasted in the organisation. This is a situation where the company carries out effectively its goals to be the market leader using minimum resources to attain maximum output. The methods of effectiveness and competence in Panasonic Corp. leads to labour efficiency, yield, and capability fill working capital utilization and the efficiency of production systems. Panasonic Corp. also makes fine use of its products and services management through operations management. Product (or service) management includes a broad range of management activities, ranging from the time that there’s a new idea for a product to ultimately provide ongoing support to consumers who have purchased the fresh and innovative product. Every organization conducts product supervision, whether it’s done deliberately or not deliberately. Panasonic Corp. through this module provides a wide idea of considerations in producing and managing its goods. Panasonic Corp. uses it hub competences in the areas of manufacturing, branding, promoting through wholesale and retail outlets to achieve competitive benefits in the market place. Quality management is also a very essential aspect of operations management in every organisation. Panasonic Corp. s very crucial about its products developed for the consumer in the market place. Quality management is vital to effective operations management, particularly ongoing perfection to match the consumers taste and preference at all times. Management Control and Coordinating Function cannot be forgone in operations management particularly in a company like Panasonic Corp. Management control and coordination includes a wide series of activities to make certain that the company’s objectives are consistently being met in an effective and efficient style. Key approaches to the company’s organizational control and coordination contain product assessment, product allocation, marketing and promotion, sales and service and product advancement. The company also uses advertisements as a major tool to reach the customer. In this increasingly expanding and competitive marketplace, the company make sure its products and services are notably in the minds of their customers and clients. This occurs as a consequence of ongoing promotion and advertising by the company. Facilities management is also an essential task and its importance on operations management for Panasonic Corp. s required. Effective operations management in the company’s activities depends on a big deal of effective management of facilities, such as buildings, computer system, plants and machinery etc. Facilities management in Panasonic corp. is very important since the company may be busy in a batch or mass production depending on the demand conditions on the market. In this case facilities need to be managed in producing large quantities of products which must be consistent to meet the market demand at definite period. Well managed facilities help in production speed, lower per unit cost, manage and control the efficiency in the company’s production process. Inventory control and management is one important factor of operations management that Panasonic Corp. uses in its operations. Managing and controlling the inventory of the company is very critical and essential. Innovative methods, such as Just-in-Time inventory control, are some of the most important instruments used by the company to cut costs and move products and services to consumers more rapidly. Generally the significance of operations management on business is urrounded in every aspect of the organizations activities and therefore has vital role to play in ensuring that organizations attain their objectives and goals. Every organization, whether it produces goods or provides services furnishes customers with worthy products. Thus, to compete with other organizations, a company must transform resources (materials, labour, money, information) into goods or services as efficiently as possible. The upper-level manager who directs this transformation process is called an operations manager. The job of operations management (OM) is to transform resources into products which consist of all the activities involved in transforming a product idea into finished and final products. In other words, operations managers manage the process that transforms inputs into outputs. Like Panasonic Corp. all manufacturers set out to execute the same basic roles: to transform resources into finished goods. To perform this function in today’s business surroundings, manufacturers must constantly struggle to improve operational effectiveness. They must focus on quality, the costs of materials and labour and all costs that add no value to the finished product. Making the decisions in the effort to achieve these objectives is the job of the operations manager. That person’s responsibilities can be grouped as follows: * Production planning. During production planning, managers determine how goods will be produced, where production will be carried out, and how manufacturing facilities will be done. * Production control. Once the production process is started, managers must repetitively schedule and monitor the activities that make up that process. They must respond to feedback and make adjustments where required. At this stage, they also supervise the purchasing of raw materials and the usage of inventories. * Quality control. Finally, the operations manager is directly concerned in efforts to make sure that goods are produced according to terms and that quality values are maintained. Planning the Production Process Managers in Panasonic Corp. believe that the decisions made in the planning phase have long-range implications and are vital to a firm’s achievement. Before making decisions about the operations process, managers must consider the goals set by marketing managers. Does the company aim to be a low-cost producer and to struggle on the basis of price? Or does it plan to focus on quality and go after the high end of the market? Perhaps it wants to build a standard of consistency. What if it intends to offer a wide range of products? To make things even more complicated, all these decisions involve trade-offs. Upholding a reputation for reliability isn’t necessarily compatible with offering a wide range of products. Low cost doesn’t normally go hand in hand with high quality. With these factors in mind, let’s look at the specific types of decisions that have to be made in the production planning process. We’ve divided these decisions into those dealing with production methods, site selection, facility layout, and components and materials management. Production-Method Decisions The first step in production planning is deciding which type of production process is best for making the goods that your company intends to manufacture. In reaching this decision, you should answer such questions as the following: * How much input do I receive from a particular customer before producing my goods? * Am I making a one-of-a-kind good based solely on customer specifications, or am I producing high-volume standardized goods to be sold later? * Do I offer customers the option of â€Å"customizing† an otherwise standardized good to meet their specific needs? One way to appreciate the nature of this decision is by comparing three basic types of processes or methods: make-to-order, mass production, and mass customization. The task of the operations manager is to work with other managers, particularly marketers, to select the process that best serves the needs of the company’s customers. Make-to-Order At one time, most consumer goods, such as furniture and clothing, were made by individuals practicing various crafts. By their very nature, products were customized to meet the needs of the buyers who ordered them. This process, which is called a make-to-order strategymake-to-order strategyProduction method in which products are made to customer specification. is still commonly used by such businesses as print or sign shops that produce low-volume, high-variety goods according to customer specifications. Mass Production Automakers produce a high volume of cars in anticipation of future demand. By the early twentieth century, however, a new concept of producing goods had been introduced: mass production (or make-to-stock strategy)mass production (or make-to-stock strategy)Production method in which high volumes of products are made at low cost and held in inventory in anticipation of future demand. s the practice of producing high volumes of identical goods at a cost low enough to price them for large numbers of customers. Goods are made in anticipation of future demand (based on forecasts) and kept in inventory for later sale. This approach is particularly appropriate for standardized goods ranging from processed foods to electronic appliances. Mass Customization But there’s a disadvantage to mass production: customers, as one contemporary advertising slogan puts it, can’t â€Å"have it their way. They have to accept standardized products as they come off assembly lines. Increasingly, however, customers are looking for products that are designed to accommodate individual tastes or needs but can still be bought at reasonable prices. To meet the demands of these consumers, many companies have turned to an approach called mass customizationmass customizationProduction method in which fairly high volumes of customized products are made at fairly low prices. , which (as the term suggests) combines the advantages of customized products with those of mass production. This approach requires that a company interact with the customer to find out exactly what the customer wants and then manufacture the good, using efficient production methods to hold down costs. One efficient method is to mass-produce a product up to a certain cut-off point and then to customize it to satisfy different customers. The list of companies devoting at least a portion of their operations to mass customization is growing steadily. Perhaps the best-known mass customizer is Dell, which has achieved phenomenal success by allowing customers to configure their own personal computers. The Web has a lot to do with the growth of mass customization. Nike, for instance, now lets customers design their own athletic shoes on the firm’s Web site. Procter & Gamble offers made-to-order, personal-care products, such as shampoos and fragrances, while Mars, Inc. can make M&M’s in any color the customer wants (say, school colors). Naturally, mass customization doesn’t work for all types of goods. Most people don’t care about customized detergents or paper products. And while many of us like the idea of customized clothes from Levi’s or Lands’ End, we often aren’t willing to pay the higher prices they command.