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Production and Operations

Management as Nucleus in the


Organizations
Operations occupy the central figure in any service or
manufacturing organization. A small decision as it may seem
can serious effect the workings and performance output in
other units.

1.MIS:
is a function that enables information to flow
throughout the organization and allows OM to operate
effectively. OM is highly dependent on information such as
forecasts of demand, quality levels being achieved,
inventory levels, supplier deliveries, and worker schedules.
IS must understand the needs of OM in order to design an
adequate information system. Usually, IS and OM work
together to design an information network. This close
relationship needs to be ongoing. IS must be capable of
accommodating the needs of OM as they change in response
to market demands. At the same time, it is up to IS to bring
the latest capabilities in information technology to the
organization to enhance the functioning of OM.

2.Human resource managers


must understand job requirements and worker skills if they
are to hire the right people for available jobs. To manage
employees effectively, operations managers need to
understand job market trends, hiring and layoff costs, and
training costs.

3.Accounting
needs to consider inventory management, capacity
information, and labor standards in order to develop
accurate cost data. In turn, operations managers must
communicate billing information and process improvements
to accounting, and depend heavily on accounting data for
cost management
decisions.

4.Purchasing:
These controls will track the costs of material being
procured, the effectiveness of the vendors in terms of the
quality and timeliness of supplies, and rejection rates. A
centralized purchasing systems allows pooling of all the
requirements so that The benefits of bulk purchasing can be
realized in a decentralized purchase in systems, the
procurement mangers of different departments purchase the
needed material according to their specific requirements.
This methods gives each department the flexibility to alter
its purchasing policy based on its specific requirements.

5.Distribution:
Distribution is the most important ingredient for any
business that relies on customers, and is typically the prime
consideration in a customer’s store choice. Distribution
decisions are harder to change because retailers have to
either make sustainable investments to buy and develop real
estate or commit to long term lease with developers. When
formulating decision about where to locate, the retailer must
refer to the strategic plan:

6.Maintenance
– All activities that maintain facilities and equipment in good
working order
so that a system can perform as intended
• Breakdown maintenance
– Reactive approach; dealing with breakdowns or problems
when they occur
• Preventive maintenance
– Proactive approach; reducing breakdowns through a
program of lubrication, adjustment, cleaning, inspection, and
replacement 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 is
any organization or business process in which people,
materials, information, equipment, processes or energy
interact in an integrated fashion. This high-level view of
business operations enables industrial engineers to manage
various industries. Therefore, industrial engineers apply their
skills across a diverse set of sectors such as financial,
healthcare, manufacturing, retail, logistics, aviation and
education.

8.PersonneL
Personnel policies and practices are compared for military,
government, and private operations including legal
foundations, classification and compensation plans,
recruitment and selection processes, training, employment
policies and morale, compensation, employee relations, and
organization.

9.legal
legal principles applicable in protecting the rights and
interests of individuals and organizations; court systems and
litigation processes; constitutional law and legislation,
formation and discharge of contracts; agency relationships;
torts; labor laws; patents; trademarks; copyrights; unfair
competition; ethics; professional relations.