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Production and Operations Management as Nucleus in the Organizations

Production and Operations Management as Nucleus in the Organizations

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Published by syed asim najam

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Published by: syed asim najam on Sep 22, 2010
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Production and OperationsManagement as Nucleus in theOrganizations
Operations occupy the central figure in any service ormanufacturing organization. A small decision as it may seemcan serious effect the workings and performance output inother units.
is a function that enables information to flowthroughout the organization and allows OM to operateeffectively. OM is highly dependent on information such asforecasts of demand, quality levels being achieved,inventory levels, supplier deliveries, and worker schedules.IS must understand the needs of OM in order to design anadequate information system. Usually, IS and OM worktogether to design an information network. This closerelationship needs to be ongoing. IS must be capable of 
accommodating the needs of OM as they change in responseto market demands. At the same time, it is up to IS to bringthe latest capabilities in information technology to theorganization to enhance the functioning of OM.
2.Human resource managers 
must understand job requirements and worker skills if theyare to hire the right people for available jobs. To manageemployees effectively, operations managers need tounderstand job market trends, hiring and layoff costs, andtraining costs.
needs to consider inventory management, capacityinformation, and labor standards in order to developaccurate cost data. In turn, operations managers mustcommunicate billing information and process improvementsto accounting, and depend heavily on accounting data forcost managementdecisions.
 These controls will track the costs of material beingprocured, the effectiveness of the vendors in terms of thequality and timeliness of supplies, and rejection rates. Acentralized purchasing systems allows pooling of all therequirements so that The benefits of bulk purchasing can berealized in a decentralized purchase in systems, theprocurement mangers of different departments purchase theneeded material according to their specific requirements. This methods gives each department the flexibility to alterits purchasing policy based on its specific requirements.
Distribution is the most important ingredient for anybusiness that relies on customers, and is typically the primeconsideration in a customer’s store choice. Distributiondecisions are harder to change because retailers have toeither make sustainable investments to buy and develop real
estate or commit to long term lease with developers. Whenformulating decision about where to locate, the retailer mustrefer to the strategic plan:
– All activities that maintain facilities and equipment in goodworking orderso that a system can perform as intended
Breakdown maintenance
– Reactive approach; dealing with breakdowns or problemswhen they occur
• Preventive maintenance
– Proactive approach; reducing breakdowns through aprogram of lubrication, adjustment, cleaning, inspection, andreplacement of worn parts.Maintenance Reasons• Reasons for keeping equipment running– Avoid production disruptions– Not add to production costs– Maintain high quality– Avoid missed delivery dates
7.Industrial Engineering:
industrial engineering is the "system" concept. A system isany organization or business process in which people,materials, information, equipment, processes or energyinteract in an integrated fashion. This high-level view of business operations enables industrial engineers to managevarious industries. Therefore, industrial engineers apply theirskills across a diverse set of sectors such as financial,healthcare, manufacturing, retail, logistics, aviation andeducation.

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