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External Influences Of Operations Management

Good Essays

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

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