Challenges Faced By Operations Executives

• Concerned over productivity:

 To achieve competitive advantages, operations executives are increasingly feeling
the pressure to push employees to work faster and better and to reduce the
development and manufacturing time for new product and services.
 When reducing time, company can address customer earlier than competitors.
• Cost Control:
 Production is typically a major part of a company’s cost structure, and operation
executives must manage it wisely.
 Reducing all type of wastages can ensure actual time of production and minimize
costs.
• Achieving and sustaining high quality:
 High quality is necessary to maintain customer satisfaction and the company’s
reputation. Customers can be retained by providing high quality.
• Continuous Improvement:
 Production of goods or services requires having strong, repeatable processes.
 To remain competitive, companies need to have processes in place to consistently
seek better ways of doing things.
• Obtaining, retaining qualified workforce:
 Finding and keeping good people is not easy. Talented, competent, and knowledgeable
people, a company needs to hire. Without potentiality, company cannot compete in the
international market.
 Moreover motivating people through hard times, training, educating, and managing
diversity and cultural differences can be especially difficult during periods of change
or growth in which companies needed to hire in large numbers.
• Integrating technologies and control system with the existence operation system.
• Operations executives must constantly forecast, plan, and adjust to optimize processes
based on conditions.
• They must troubleshoot bottlenecks, inadequate resources, and downtimes to create optimal
efficiency.
• Controlling production in different centralized institutions.
• Working effectively with each partner.
 Alliance is a cooperative relationship.
Principles of Operations Management

 Get to know the customer

 Cut work –in – process
 Cut throughput time
 Cut setup and changeover times
 Cut flow distance and space
 Decrease cycle intervals for production
 Cut number of suppliers to a few good ones
 Cut number of components of the product or service
 Make it easy to make / provide goods or services
 Arrange the workplace to eliminate search time
 Cross-train for mastery of more than one job
 Record and retain production, quality and problem data at the work place.
 Assure that the line people get first crack at problem solving—before staff
experts.
 Maintain and improve existing equipment and human work before thinking
about new equipment.
 Look for simple, cheap, movable equipment.
 Seek to have plural rather than singular workstations, machines, cells, and lines
for each product or service.
 Automate incrementally when process variability cannot otherwise be reduced.
Importance of Operation Management

1. Operation management is essential for any organization with a view to ensuring the
competiveness in the organization.
2. It can benefit a company through adequately managing areas of the operation such as
human resources, production, inventory, logistics, purchasing, materials management, and
more.
3. It handles issues like design, maintenance and improvement of the production system used
for the production of products and services and ensures efficiency.
4. It deals with the product and service development function to maintain speed, cost,
quality and flexibility of the product or service.
5. It helps to adopt effectively with any kind of technological change.
 6. With the help of operation management, an organization is able to make good use of its
resources like labor, raw material, money and other resources.
7. Since operation management focuses on using the available resources in the best possible
way, it improves the overall productivity

Transformation System for Manufacturing Organization (Operational Model)

Random
Fluctuations
• High
turnover of
workers and
managers
• Recession
• Govt.’s
Quality of Inputs taxations
Monitored & policy Quality of Outputs
Adjustment Needed • Strikes Monitored
instigated by
Trade
Unions.
Inputs Outputs
• Materials
• Machines and • Refrigerators
equipment Transformation with good
• Components Process cooling
parts, sub- performance.
assemblies, etc. • Less
• Office consumption of
infrastructure electricity
(computers, • Good after sales
furniture, etc.) Feedback
service.
• Capital Mechanism
• Rising sales • Genuine prices.
• Building
volumes • New advance
• Workers
• Managers • Lesser features
customer
complaints
• Positive
response of
customers in
the feedback
forms.
 Transformation System for MBA student

Random
Fluctuations
• Strike of
students,
teachers &
Quality of Inputs staff
Monitored & • Undue Quality of Outputs
Adjustment interference Monitored
Needed of the Govt. in
the working
of the
Inputs institution. Outputs
• Raw minds * Enlighten students
(Students) with
• Teachers Transformation * Good communication
• Administrative Process skills
staff
* Pleasant personalities
• Class Room
* Leadership qualities
• Computer Lab
Feedback *Good analytical ability
• Library
Mechanism * Team spirit
• Projector(
• Success at * Decision making
OHP/LCD)
placement abilities;
interviews * Computer skills
• Grade obtained
in the
examination
• Rising career
graph of the
alumni in
corporations
• Number of
applicants for
admission in
the institute
• Ratings of
survey.