Evaluate the Response of Operations Management to External Influences
Operations Management
Operations Management in an organisation is repsonsible for managing and in making decisions concerning the activities that convert inputs into outputs , that is goods and services. This covers both short term actvities as well as longer term activities to meet strategic goals. Inputs can be the raw materaials need to manufacture goods such as furniture or the computers needed to create a service like online shopping site. Operation management’s role is to make decisions to improve how operation activities function, for example, to improve the final quality of the output or to change production methods to be more efficient in terms of cost and in time.
The role of operations management is vital in planning and managing the way that inputs for the business are transformed. Ultimately, operations management is trying to achieve a competitive advantage for their organisation through improved efficiencies, product quality, reduction of cost and product differentiation.
Figure 1 – Operations Management is key in the transformation process
External Influences
All businesses are affected by a series of external forces or influences. These influences may also change over time and hence the way they interreact with an organisation can also change. Operations Management will use a variery of measurements to monitor external influences to help them respond to these changes, for example, at times of slow hire rates for employees in time of high employment, operation Management may re-train other internal staff to make up shortfalls [Kydos, P29].
External influences cover a wide variety of factors, and their influence can differ between business types. These include the following:
• Globalisation
• Technology
• Customer quality expectations
• Legal Regulations
• Government Policies
• Environment sustainability
• Cost-based competition
• Corporate social responsibility
• Quality Expectations
Some examples of external influences are now examined in detail.
Globalisation
Globalisation is the growth and integration between the economies in different countries for movement of goods and services. Globalisation
Operations management refers to all levels of an organisation and how best to efficiently convene, fund, maintain and maximise its services and/or operations, both internal and external. The core goal/objective of operations management it to maximise outputs while reducing and minimising the inputs required to achieve the desired results.
Globalisation is the process of integration of national economies through international trade of markets in goods and services, international trade in assets, and international spread of ideas, from consumer tastes to intellectual ideas (Frankel, 2006).
Globalisation refers to the process of interaction and integration among the people, companies as well as governments of countries around the world, particularly in terms of trade, investment and technology. The process of globalisation, has profound impacts on the environment, culture, political systems, economic developments, prosperity and human physical well-being in the societies around the world.
Internal influence: They are factors which businesses have some degree of control like location, management and business culture.
Globalisation is the process of allowing goods, financial and investments markets to operate across national borders due to deregulation, improved communications, infrastructure and technology.
Operation Management is the study of how people organize themselves for productive enterprise .In order to be effective and efficient, an operation manager must possess a series of attitudes and skills to push his/her company forward to reach goals and objectives. Operation management consists of the four functions, that is, planning, organizing ,controlling and leading. These functions help in the analysis of the activities done by the organization.
Operations Management focuses on the design and management of products, processes, services and supply chains (Diemond, 2014). It considers the acquisition, development, and utilization of resources that firms need to deliver the goods and services their clients want (Diemond 2014). Operations Management consists of many topics which are applied on a daily basis at the company I work for. Some of the topics include process control, lean manufacturing, six sigma, and supply chain management. It is the process that controls how inputs (raw materials, labor, and energy) get converted into outputs (finished goods or services).
External forces affecting an organisation demand change by creating threats and opportunities. The organisation it compelled to respond to these threats and opportunities. These external forces are apparent in many of the segments of the organisations external environment. These include political-legal, technological, economic, marketplace and sociocultural dimensions.
Operations Management Process is the central arteries within the organization because it produces the planning process for goods and services, which are its reason for existent. Operations management is linked to all organizations as every organization is producing either a product or a service. However, it cannot be said to be the most important function since there are other functional areas and boundaries within an organization. In today's fast changing world, organizations have to have a tendency towards being efficient, effective and innovative to the changing environment to succeed. Operations Management has to use metrics in order for them to accomplish their task and be successful with
Operations and process management is ‘the activity of managing the resources and processes that produce products and services’ (Slack et al. 2015, p.4). The Operations Manager is responsible for bringing the resources and processes
Globalisation can be defined as the movement toward economic, financial, trade, and communications integration by countries and their populations globally. It is a constant process and it has resulted in the intertwining and generalisation of the needs and wants of people
It involves planning, organizing, coordinating, and controlling all the resources needed to produce a company’s goods and services. Because operations management is a management function, it involves managing people, equipment, technology, information, and all the other resources needed in the production of goods and services . The Transformation Role of Operations Management We say that operations management performs a transformation role in the process of converting inputs such as raw materials into finished goods and services. These inputs include human resources, such as workers, staff, and managers; facilities and processes, such as buildings and equipment; they also include materials, technology, and information. In the traditional transformation model outputs are the goods and services a company
Operations management is generally described as the planning, arrangement, and control of activities that change raw materials or an organization's input into finished products and services. The overall activities covered by operations management include the creation, development, manufacture, and distribution of products. The concept also relates to various activities such as inventory control, controlling purchases, quality control, logistics, storage, and evaluation ("Operations Management in McDonalds", n.d.). Since operations management covers the entire operations in an organization, it mainly focuses on the efficiency and effectiveness of the firm's processes.
According to, “(Jacobs & Chase, 2008), “Operations Management is the design, operation, and improvement of the systems that create and deliver the firm’s primary products and services”. It is a key element in the improvement in productivity in an organization. To establish a competitive advantage the operation management should contribute to productivity growth. It is the management of the system that produce goods and deliver a services.