Importance of Operations Management

In: Other Topics

Submitted By nissh31
Words 3471
Pages 14
The Crucial Importance of Production and Operations Management Author(s): Charles G. Andrew and George A. Johnson Source: The Academy of Management Review, Vol. 7, No. 1 (Jan., 1982), pp. 143-147 Published by: Academy of Management Stable URL: http://www.jstor.org/stable/257260 . Accessed: 22/10/2013 05:14
Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp

.
JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org.

.

Academy of Management is collaborating with JSTOR to digitize, preserve and extend access to The Academy of Management Review.

http://www.jstor.org

This content downloaded from 14.139.155.243 on Tue, 22 Oct 2013 05:14:17 AM All use subject to JSTOR Terms and Conditions

?Academy of Management Review 1982, Vol. 7, No. 1, 143-147

The

Crucial Importance of Production and Operations Management
CHARLES G. ANDREW University of Hartford GEORGE A. JOHNSON University of Connecticut
The history of the recent decline of production and operations management (POM) in academic importance is traced. POM's fundamental importance as a functional area is argued on the basis of four criteria: (1) centrality in organizations; (2) share of organizational resources; (3) pervasiveness in industrial society; and (4) significance in social change.

AACSB has tried unsuccessfully for several years to prepare and adopt a more explicit statement of interpretation for the production management segment of Curriculum Standard IVa. The Assembly is by no means alone in…...

Similar Documents

Operations Management

...A critical examination of the success of implementing operations management theories within the local government Operation management theories can be used as templates over almost any industry, the usage of which can affect the outcome of almost any situation, which arises within the organization. The theories can cover anything from the large operations a business is responsible for including transport to the smallest factors, which can include production methods. My topic for discussion today will be the inclusion of the theories within the local government sector and how successful the plans have been. Firstly, layout and flow becomes an important aspect of almost any business. This helps the organization not only provide the best service to the customer and enabling all the resources needed are to hand but also ensures the customer can travel within the business smoothly and free of queuing. The governments major operation to provide the best layout comes from within the hospitals where layout management can quite literally mean life or death. Poor management of the layout of government buildings such as hospitals need to be laid out so that not only are facilities closely available to the patients that need them but also the doctors who need to be able to navigate throughout the hospital without hindrance. A company sourced by the government who specialize in medical architecture back up the importance for proper planning and try to ensure that their plans cater for...

Words: 3399 - Pages: 14

Operations Management

...Table of Contents 1. Operations Performance Objectives 2 2. Transformational Processes 4 3. Importance of Operation Strategies 5 4. References 6 1. Operations Performance Objectives The production department is one the busiest in a firm. It is the one responsible for the manufacturing of the goods in a manufacturing firm. The five operation performance objectives namely speed, cost, flexibility, quality and dependability have to be met in order to give the company a good competitive advantage over its competitors. The objectives are discussed below looking at the production department of a Chair manufacturing company. i. Quality It refers to doing things correctly the first time every time, providing error free goods that are fit for purpose and meet specification. It is one the best things a customer would look out for when purchasing. More and more companies are using quality as a basis for competition for example making chairs using the finest materials and wood that would take longer. Improving quality increases productivity because making higher quality products generally results in less waste and rework .Enhancing quality also lowers costs for the company and so the company continues making more than trying to cover for the low quality goods. ii. Dependability This is doing things on time and keeping your promises with your customers and suppliers. Staying true to your words. The production department should make sure they produce well on...

Words: 825 - Pages: 4

Operation Management

...Chapter 1 Competing with Operations Foundations of Operations Management, Ritzman & Krajewski © What Is a Process? • Process – Activities that transform inputs, add value and generate output(s) • Examples: – Manufacturing process • Furniture manufacturing: cutting or staining wood – Non-Manufacturing Process • Checking in passengers Foundations of Operations Management, Ritzman & Krajewski © 1-2 Processes & Operations Internal and external customers Inputs • • • • • • • • Workers Managers Equipment Facilities Materials Services Land Energy Processes and operations 1 3 5 2 4 Outputs • Services • Goods Figure 1.1 Information on performance 1-3 Foundations of Operations Management, Ritzman & Krajewski © Nested Processes at a Large Bank BANK Operations Cash Management Loan operations Trading operations Others ATM Support Customer transactions Service quality Others Maintain Cards Research problems Site analysis Others Retail Distribution Compliance Finance Human resources Teller Line Transactions Track branch sales ATM hotline Others Process Deposits Cash checks Safe deposit boxes Others Products Auto Finance Cards Mortgages Others Credit Applications Manage retail products Originate lease portfolio Others Loan Documentation Review credit standing Obtain manager approval Others Wholesale Trading Loan administration Leasing Others Fund Management Market making spot Dealer support Others Prepare Reports Attend......

Words: 1331 - Pages: 6

Operation Management

...ASSESSMENT FRONT SHEET LONDON CHURCHILL COLLEGE Programme: AAPBS LEVEL-5- Certificate in Business Mgmt Studies. Unit: Operations Management in Business Unit code: M- QCF level: 5 Credit Value: 15 Tutor: Sabrina Akbar Email- Sabrina.akbar@londonchurchillcollege.co.uk Date Set: 08/02/2012 Learner’s name and statement of authenticity Learner’s Name: …………….. Learner’s ID: Date handed-in: I certify that the work submitted for this assignment is my own. Where the work of others has been used to support my work then credit has been acknowledged. Signature: ……………………. Date: …………… 1. Introduction: Operations management is concerned about overseeing, redesigning and designing business operation in service or production of goods, efficient use of resources and effectively meeting of customer requirements. Operations management also cover the process which converts inputs into outputs like inputting raw materials or energy and labor and getting goods and services. It considers the utilization, development and acquisition of resources that organizations need to deliver services and goods their customers want. The works and jobs responsibility of operation management starts from strategic planning and ends at operational and technical levels. Operation management use various technology and ideas to reduce production and operating cost and increase productivity, improve customer services, increase product quality and......

Words: 3606 - Pages: 15

Operations Management

...the operation to a part the store. Each process is strategically placed to minimise bottlenecks and to reduce lag time in the production process. The layout of the Bath store (below) has been designed to cope with the fluctuating demand of orders throughout the week. At peak times, up to eight employees can work across key stages of the production process, and at lower demand levels as few as four employees are required. It was observed that as demand for pizza fluctuated, employees were able to work at different stages of production wherever they were needed the most to reduce any lag time as much as possible in the production process. Bibliography Bukchin and Rubinovitz (2001). A weighted approach for assembly line design withstation paralleling and equipment selection. Retrieved from:http://www.eng.tau.ac.il/~bukchin/10.pdf [Accessed: 14.3.2013]Domino’s (2010). 2010 Annual Report [Accessed: 11.3.2013]Domino’s (2013). Franchising. Retrieved from: http://www.dominos.uk.com/franchising/[Accessed: 10.3.2013]Domino’s (2013). Corporate Vision & Mission. Retrieved from:http://www.dominospizza.co.nz/corporate/vision-mission [Accessed: 12.3.2013]Hayes and Wheelwright (1979). Link Manufacturing Process and Product Life Cycles. Retrieved from:http://hbr.org/1979/01/link-manufacturing-process-and-product-life-cycles/ar/1 [Accessed:20.3.2013]Rao, S.R., (2010). The Importance of Operations Management. Retrieved......

Words: 488 - Pages: 2

Operation Management

...OPERATIONS MANAGEMENT -TOPICS & EXAMPLES What Is Operations and Supply Chain Management? 1-2 The design, operation, and improvement of the systems that create and deliver the firm’s primary products and services ¨  Operations and supply chain management (OSCM) is ¨  ¤  A functional field of business ¤  Concerned with the management of the entire production/delivery system Goods versus Services 1-3 Goods Services Pure Goods Core Goods Core Services Pure Services Tangible Less interaction with customers Often homogeneous Not perishable – can be inventoried Intangible Interaction with customer required Inherently heterogeneous Perishable/time dependent Defined and evaluated as a package of features Importance 1-4 ¨  Regardless of the type of organization, they all must ‘do’ operations management because all of them exist to produce some mixture of products and services. ¤  Even if the term “operations management” is not used Operations management decisions have a major impact on both the cost of producing products or services and how well the products and services are produced and delivered (which in turn impacts profits) ¨  In the non-profit sector, quality services that are delivered efficiently provide greater value to the community ¨  Operations and Supply Chain Processes 1-5 Operations Manufacturing and service processes used to transform resources into products Supply Chain Processes that...

Words: 931 - Pages: 4

Operations Management

...Operations Management History, Development & Brief Overview on Manufacturing/ Operations Management Operations management is an area of business concerned with the production of goods and services, and involves the responsibility of ensuring that business operations are efficient in terms of using as little resource as needed, and effective in terms of meeting customer requirements. It is concerned with managing the process that converts inputs (in the forms of materials, labor and energy) into outputs (in the form of goods and services). Operations traditionally refer to the production of goods and services separately, although the distinction between these two main types of operations is increasingly difficult to make as manufacturers tend to merge product and service offerings. More generally, Operations Management aims to increase the content of value-added activities in any given process. Fundamentally, these value-adding creative activities should be aligned with market opportunity (see Marketing) for optimal enterprise performance. According to the U.S. Department of Education, Operations Management is the field concerned with managing and directing the physical and/or technical functions of a firm or organization, particularly those relating to development, production, and manufacturing. Operations Management programs typically include instruction in principles of general management, manufacturing and production systems, plant management, equipment......

Words: 6680 - Pages: 27

Operations Management

...What is Operations Management? 2013 Joshua Richards POM 343 Due: 12/11/2013 Table of Contents Tale of Things to Come 1 Conceptual Model 2 Class Two: What is Operations Management / Productivity, Competitiveness & Strategy 3 Class Three: Forecasting, Aggregate Planning, MRP and ERP 4 Class Four: Product and Service Design 5 Class Five: Capacity Planning, Process Selection and Facility Layout 6 Class Six: Design of Work Systems and Learning Curves 7 Class Eight: Location Planning and Analysis 8 Class Nine: Management of Quality and Quality Control 9 Class Ten: Inventory Management 10 Class Eleven: JIT and Lean Operations 11 Class Twelve: Supply Chain Management 12 Conclusion 13 Tale of Things to Come I am going to take you on a whirlwind of wonder and learning all based around operations management. At least that is what I saw it as. Coming in to a class with no expectations, mainly because I have never heard of the topic, I was pleasantly surprised. Coming from a person who has hopes and dreams to own or at least run a successful company someday this class had a plethora of information that I will hopefully someday have the opportunity to use. I decided to break the class down week by week. The reason I chose to do this is partly because of the material and partly because of the teaching method. One thing I loved about the class is that as you go along you always continue to use the stuff you learned previously. When we were doing......

Words: 5303 - Pages: 22

Operation Management

...Toyota Operations Management maintenance of the production of goods or services 1. Introduction Operations management is the maintenance of the production of goods or services that a company is developing for sale. The management team is charged with the task of ensuring a profitable and safe production system, and also ensuring that resources are allocated and used in an efficient manner, minimizing waste in labour and material resources. In order to meet these goals, the management team thus has to attempt to find the best operations strategy available for their particular situation and product. The biggest challenge for any organization and its operations is to try to maximize productions by cutting down on waste, Finding the right balance between getting the production up to the required standard by using the resources available to the optimal level. There are many strategies that can be used by an operations manager depending on the needs of production, and in the first section we will examine some existing operation management strategies, and in the second section we will examine the effectiveness of these strategies, and how well they fit in with the goals of the target organization, Toyota. 2. Operations Managers Role The Role of an operations manager is of utmost importance as any operations manager who can effectively utilize an organizations resources to efficient effect by producing outputs of a standard & sustainable quality, contributes to the......

Words: 1888 - Pages: 8

Operations Management

...Operations Management… By D.B.S. Saurabh Marwah(201401017), Dingnan Ouyang(201400084), Boyang Yu(201400104) Students – Asia Pacific International College Literature review 1 Literature review of Operations management Saurabh Marwah, Dingnang, Boyang Asia Pacific International College Research Topic: The impact of total supply chain management on organization performance? Literature review 2 Introduction Operations management is an important part for all the organizations to run themselves successfully or in a professional manner. It refers to decisions and responsibilities of managing the resources dedicated to the production and service delivery. Managers are the people who are responsible managing the resources that make up the operations function. There are other functions also which are not core to the organizations which are for the smooth running of the organizations such as accounting, IT, human resources. Being an operations manager contains a lot of responsibilities and activates in the organization, which contribute to give good service. * Strategic objective: Operations managers must clearly understand the goals of the organization and develop vision in order to achieve them, which also involve translating the goals into implications. * Operations strategy: There are numerous decision-making involved with operations, it is important that operations manager should have a set of guidelines that are connected with......

Words: 1699 - Pages: 7

Operation Management

...Nature and the Importance of Operation Management 2 Task 2: The Link between Operation Management and Strategic Planning 4 Task 3: Organizing a Typical Production Process 6 Task 4: Application of Relevant Technique to the Production of an Operational Plan for an Organization 7 Conclusion: 9 References: 10 Introduction Operation management is a part of overall function of a business organization. It means planning, organizing, staffing, leading and controlling the resources of a company those are used to make goods or services of that particular organization. So it can also be said as a part of management function. Operation management is important for any kinds of company including for- profit, not-for-profit, social, commercial etc. IT performs the prime managerial activities of any organization. Weather the organization is service oriented or profit oriented to achieve goals it needs to manage its resources like human, technological, informational etc. organizational management makes the way for a better combination of these resources. In this assignment the nature and importance of operation management will be described. The importance of organization management for an organization, its operation in a selected organization and evaluation of operational management of a selected organization by using a process model also will be described. There is a link between operation management and strategic management it will also be explained. The importance of Three......

Words: 3462 - Pages: 14

Operation Management

... Using the Principle of Operation Management to reactivate a firm: A Case study of WH Smith Level 4 – HNC and Level 5 – HND Operations Management in Business Contents Task 1: 3 Operations Management: 3 Key Elements of OM 3 Need to produce or deliver goods or services as per specification: 4 How OM helps achieving strategic objectives: 4 WH Smith: Systems Analysis: 5 Task 2: 6 Three ‘E’s in WH Smith: 6 Cost minimization and quality maximization for WH Smith: 6 Importance of the five performance objectives of WH Smith: 7 Task 3 9 The Importance of operational planning and control: 9 Linear programming for WH Smith: 10 Critical Path Analysis in WH Smith: 10 Defining quality and maintaining quality: 10 Harvard Reference 11 Introduction To WH Smith & Former CEO Kate Swann WH Smith is a High Street retailer first founded in 1792. The retailer started as a newsagent, stationer and confectioner, the business model was successful which compelled the then owners to expand and grow. WH Smith is widely recognized as the worldwide quality retailer. During 2006 WH Smith was issued with a profit warning as the FTSE-250 company expected losses of over £100 million, WH Smith faced fierce competition from online giants Amazon and eBay who were slowly but surely eating away their dominent market share. Kate Swann was ushered in to solve the problem and within 10 years she was able to take a loss making company and turn it into £100 million profitable company...

Words: 2760 - Pages: 12

Operation Management

...holding company, mainly engaged in real estate development in Malaysia. It does this by three parts: property development, education, and a clubhouse. The company develops, build and sell residential, commercial, industrial, leisure, and institutional property; management of private and international schools; and management and operation of the club. It is also involved in the sale of land; investment property; purchase of building materials; and providing landscape management, project management, management and administrative services. The company was founded in 1996 and is headquartered in Seremban, Malaysia.Matrix Concepts Holdings Berhad, a Negeri Sembilan according to property developers, it has earned a reputation for developing quality and affordable residential and commercial buildings since its incorporation in 1997.So far, the formation of a strong track record of completed development projects worth over one billion US dollars RM2.4 gross development value (GDV) of about 1900 acres of land in Negeri Sembilan and Johor. Part (A) Operations Management is the management of business practices to create the highest level of efficiency in the organization. The purpose of the operational management is the conversion of materials and labor into commodities and services as much as possible to maximize the profits of such an organization. Direct responsibility method individual or team, is responsible for all the necessary clients will need to go to......

Words: 2064 - Pages: 9

Operations Management

...Introduction Chapter 1 introduces you to the field of operations management. It describes the nature and scope of operations management, and how operations management relates to other parts of the organization. Among the important topics it covers are a comparison of manufacturing and service operations, a brief history of operations management, supply chain management, and a list of trends in business that relate to operations. After you have read this chapter, you will have a good understanding of what the operations function of a business organization encompasses. Chapter 2 discusses operations management in a broader context, and presents the issues of competition, strategy, and productivity. After you have read Chapter 2, you will understand the importance of the operations function relative to the goals of a business organization. This chapter also describes time-based strategies, which many organizations are now adopting as they seek to become more competitive and to better serve their customers. Introduction to operations management includes two chapters: 1 2 Introduction to Operations Management, Chapter 1 Competitiveness, Strategy, and Productivity, Chapter 2 CHAPTER 1 Introduction to Operations Management CHAPTER OUTLINE Introduction, 4 Production of Goods versus Delivery of Services, 7 LEARNING OBJECTIVES After completing this chapter, you should be able to: 1 Define the term operations management. 2 Identify the three major functional areas of......

Words: 18766 - Pages: 76

Operation Management

...as its priority focus. 2.0 The organization functional groups The organization consists of eight functional groups that work closely together to achieve organizational goal. The functional group can be categorized under two functional type; external customer facing and internal customer facing. The external customer facing functional groups are sales and marketing, technical support and customer service department. The internal customer facing functional group are human resource, finance and accounting, information system, procurement and logistic, and product design and development department. Operation management plays the utmost important role in managing, integrating, controlling and communicating each functional group in order to produce and deliver its products and services effectively and efficiently to satisfy customer’s needs. Slack et al. (2010) define operation management as the activity of managing the resources which produce and deliver products and services. Figure 1.0 shows the relationship between each department of the organization. For the purpose of this study, we will be focusing only on technical support department. 2.1 Technical support department The technical support department consists of sixty technical support representatives (TSR) that divided into five teams. The primary role of TSR is to diagnose and provide guidance and solution to customers that are having issue with their devices. The contact method is via inbound calls where customers......

Words: 3744 - Pages: 15