Today I will be sharing a few learnings on Operations Management.
Everything around us is a product of “Operations”.
Operations is generally about transforming Inputs to Output e.g. An organization purchases input from Suppliers, changes this input through the transformation process using available resources and sells outputs to Customers.
Operations management deals with planning, coordinating, and controlling the resources needed to produce a company’s products and services.
Elements of Operations Management
Equipment: Needed to make a process happen e.g., ATM in banks, cash register in restaurants, etc.
Features of equipment include:
Capability: What the instrument can do and its ability to perform reproducibly
Capacity: How much the piece of equipment can hold , the quantity of information that can be processed in a given period of time.
Flexibility: The operating system’s ability to cope with changing circumstances with little penalty in cost, time, ef,fort or performance
Reliability: Likelihood that equipment will perform as designed (High or increasing downtime and maintenance costs might indicate decreasing reliability).
People: Same features for equipment also apply. Capability, capacity, reliability and flexibility also relate to people who bring interpersonal skills into operations.
Energy: Component of almost any operation. We do not think much about it but in most cases, it exists
Inventory: Input, component and product of most operating systems (anything purchased for transformation or resale). Assists in transformation of materials into saleable goods. This could be as raw materials, Work in progress or finished goods.
Operations Failure
The major cause of operations failure is a mismatch between demand and supply. Examples include stock-out situations, traffic congestion (much more vehicles on the road than it can take at a given period of time), accumulation of inventory, queues and waiting lines, lost sales, quality issues etc.
The main objective of operations management is to effectively and efficiently match demand and supply.
#MEMBA11 #OperationsBlog
