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Briefly explain the evolution of “Operations

Management.”
Kiu

Faculty of management
Human Resource Management

Individual Assignment

Subject Name; Operations Management

Subject Code: HRM 4304

Examination ID Number: KIU/M/3182


Name of Student: R.V.S.Perera
Program Code: HRM 4304
Deadline of the Assignment: 29/04/2022
Submission Date: 29/04/2022
Table of Contents

1. What is the operational management?.............................................................................................1


I. Responsibility in operational management..................................................................................1
II. Importance of operational management in business organization.........................................2
III. Function of operational management.......................................................................................3
IV. Scope of operational management............................................................................................4
V. Nature of operational management..............................................................................................5
2. Historical evolution of operational management.............................................................................6
I. Industrial Revolution.....................................................................................................................7
II. Scientific Management..............................................................................................................8
III. Human Relation Movement......................................................................................................9
IV. Decision Models & Management Science...............................................................................10
V. Influence of Japanese Manufacturers........................................................................................11
3. Conclusion........................................................................................................................................12
4. References........................................................................................................................................13

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1. What is the operational management?
Operations management is a field of business concerned with the administration of business
practices to maximize efficiency within an organization. It involves planning, organizing, and
overseeing the organization's processes to balance revenues and costs. Operations managers aim
to achieve the highest possible operating profit for their organizations. An operations manager is
tasked with ensuring that an organization successfully converts inputs such as materials, labor,
and technology into outputs in an efficient manner.

I. Responsibility in operational management

Operations management is a field of business that involves managing the operations of a


business. It means that the individual in charge of the department will be required to perform
various strategic functions. Some of the functions include, among others, ensuring efficiency in
the execution of projects.

Product design

Operations manager is responsible for ensuring that products sold to consumers meet their needs
and match current market trends. Product design involves creating a product that will be sold to
the end consumer. It involves generating new ideas or expanding on current ideas in a process
that will lead to the production of new products.

Forecasting

The operations manager is required to predict the consumer demand for a company's products.
The manager relies on past and present data on the uptake of its products to determine future
trends in consumption. Forecasts help the company know the volume of products needed to meet
the market demand.

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Supply chain management

Supply chain management involves managing the production process from raw materials to the
finished product. It controls everything from production, shipping, distribution, to delivery of
products. A properly managed supply chain will result in an efficient production process and low
overhead costs, and timely delivery.

Delivery management

The operations manager is in charge of delivery management. The manager ensures that the
goods are delivered to the consumer in a timely manner. If the customer is unsatisfied with the
product or is complaining about certain features, the operations manager receives the feedback
and forwards it to the relevant departments.

II. Importance of operational management in business


organization

Operational management process has many benefits for an organization including;

Product service and quality

The operations manager will have a set list of processes and a checklist to ensure that everything
is in order during the pre-production process. This includes making sure that everyone is aware
of what the product/service needs, as well as informing everyone of the product's objectives.

Customer satisfaction

A customer review can make or break a business. If a negative word spreads, it could be a
challenge to retain clients. The operations manager will conduct a quality management process to
ensure that your product/service meets the needs of your customers.

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Revenue increase

An organization will have a good reputation thanks to great product/service quality and customer
satisfaction. This leads to increased revenue from a new customer base. The revenue growth
could help with the launch of new and innovative products/services or an increase in resources,
technology and staff

Competitive advantage

An effective operations management plan also means they could be at the top of their field when
it comes to efficiency and cost-effectiveness within their organization

Motivated employees

An operations manager helps to ensure that production is maximized and efficient. Overall, the
operations manager ensures that employees know their roles within a company. This is important
because often, employees feel left out and demotivated if they feel they are not contributing in a
meaningful way.

III. Function of operational management

Finance

The operation manager of an organization should ensure that all finance is utilized for the
manufacturing of useful goods or services which may satisfy consumer wants. Finance plays a
main function in operations management and the operation manager should not waste it in
unproductive tasks, according to Dr Richard Branson's book 'Operations Managers'.

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Operation

The function of operation management is concerned with planning, organizing, directing and
controlling the daily routine operations of an organization. The operation manager ensures that
all activities are going effectively and efficiently to ensure that all aspects of an organization’s
operations are carried out in a controlled and effective manner.

Strategy

The strategy formulation is also the main function of an operation manager. Formulation of plans
and tactics helps the organization in optimizing their resources and developing a competitive
edge over competitors.

Product design

It is the duty of operations managers to ensure that innovative techniques are incorporated into
the product and its quality is maintained. It is the responsibility of the operations manager to
design the product according to the market trends and demands in Nigeria's textile industry for
the local market.

Maintaining quality

Operations managers should ensure a better quality of products. They should work on quality
management and should supervise all tasks. If any defects are found they should take steps to
rectify such defects. The manager should not compromise with the quality of Products, according
to the BBC's Quality Manager Programmer.

IV. Scope of operational management

Increase productivity
Raises revenue
Achievement of organization goals
Improve customer need
Reduce investment need
Enhance goodwill
Improve innovation

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V. Nature of operational management

Dynamic
Operations management is dynamic in nature. It keeps on changing as per market trends
and demands.

Transformational Process
Operation management is the management of activities concerned with the conversion of
raw materials into finished products.

Continuous Process
Operation management is a continuous process. It is employed by organizations for
managing its activities as long as they continue their operations.  

Administration
Operation management administers and controls all activities of the organization. It
ensures that all activities are going efficiently and there is no underutilization or
misutilization of any resource.

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2. Historical evolution of operational
management

Operations Administration Could Be A Field Of Administration Concerned With Controlling

The Method Of Generation And Planning Administering, Organizing And Planning Within

The Settings Of Generation. Too It Incorporates Trade Operations Within The Generation Of

Merchandise And Administrations. It Has The Obligation For Guaranteeing That Commerce

Operations Are Advantageous And Effective. In Other Words, Organization Effectively

Forms From Inputs To Yields In A Proficient Way. It Is Concerned To Oversee The Method

That Turns Inputs Like Crude Materials, Vitality And Labor (Human Assets- Staff Or

Laborers) Into Yields Such As Merchandise And Administrations. There Are Two Terms

Almost Operations Administration, Which Is Supply Chain Administration and

Coordination’s.

OM’s History Begins with the Mechanical Periods. When The Mechanical Insurgency

Happened Within The Conclusion Of The 18th Century, This Caused Changing Working

Environment. Until The Insurgency Happened, Individuals Created All Merchandise In Their

Domestic Which Is Called Domestic Environment. But After The Insurgency, It Is Changed

To Plant Generation. At This Time, Present Day Steam Motors Had Been Created. Through

This Occurrence, A Few Critical Mechanical Advancements Happened.

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I. Industrial Revolution

The Method of Alter from an Agrarian and Craftsmanship Economy to One Overwhelmed

By Industry and Machine Fabricating. These Innovative Changes Presented Novel Ways of

Working and Living and In A General Sense Changed Society. This Process Began In

Britain Within The 18th Century And From There Spread To Other Parts Of The World. The

Term Mechanical Insurgency Was To Begin With Popularized By The English Financial

History Specialist Arnold Toynbee (1852–83) To Portray Britain's Financial Advancement

From 1760 To 1840. This Clarifies Why A Few Ranges, Such As China And India, Did Not

Start Their To Begin With Mechanical Insurgencies Until The 20th Century, Whereas

Others, Such As The Joined Together States And Western Europe, Started Experiencing

“Second” Mechanical Transformations By The Late 19th Century.

Pre- Industrial Revelation – System in Which Highly Skilled


Worker Use Simple, Flexible Tools to Produce Small Quantity of
Customize Goods.
Some Key Elements Of The Industrial Revaluation
Began In England In The 1770s
Division Of Labor – Adam Smith 1776
Application Of The Rotative Steam Engine 1780
Cotton Gin And Interchangeable Parts – Eli Whitny 1792
Managmentv Thero And Practice Did Not Advance Appreciably During
This Period

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II. Scientific Management

Logical Administration May Be A Hypothesis Of Administration That Analyzes And Synthesizes


Workflows. Its Primary Objective Is Making Strides Financial Proficiency, Particularly Labor
Efficiency. It Was One Of The Most Punctual Endeavors To Apply Science To The Designing Of
Forms To Administration. Logical Administration Is Some Of The Time Known As Taylorism After
Its Pioneer, Frederick Winslow Taylor.[1] Taylor Started The Theory's Advancement Within The
Joined Together States Amid The 1880s And 1890s Within Fabricating Businesses, Particularly Steel.
Its Top Of Impact Came Within The 1910s;[2] Taylor Passed On In 1915 And By The 1920s, Logical
Administration Was Still Persuasive But Had Entered Into Competition And Syncretism With
Contradicting Or Complementary Ideas. Although Logical Administration As A Particular
Hypothesis Or School Of Thought Was Out Of Date By The 1930s, Most Of Its Subjects Are Still
Imperative Parts Of Mechanical Designing And Administration Nowadays. These Incorporate:
Examination; Blend; Rationale; Levelheadedness; Observation; Work Ethic; Effectiveness And End
Of Squander; Standardization Of Best Hones; Abhor For Convention Protected Only For Its Possess
Purpose Or To Ensure The Social Status Of Specific Laborers With Specific Aptitude Sets; The
Change Of Make Generation Into Mass Generation; And Information Exchange Between Laborers
And From Specialists Into Devices, Forms, And Documentation.

 Movement Was Led By Efficiency Engineer Frederick Winslow Taylor

 Believed In A Science Of Management Base On Observation Measurement Analysis


And Improvement Of Work Method And Economic Incentives
 Management Is Responsible For Planning Carefully Selecting And Training Workers
Finding The Best Way To Perform Each Job Achiving Manafgement Activity’s From Work
Activity’s
 Emphasis Was On Maximicying Output

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III. Human Relation Movement

The Human Relations Development Was Established By Humanist George Elton Mayo
Within The 1930s Taking After A Arrangement Of Tests Known As The Hawthorne
Ponders, Which Centered On Investigating The Interface Between Representative
Satisfaction/Wellbeing And Working Environment Productivity. Essentially The Hawthorne
Ponders Concluded That When Bosses Take An Intrigued In Specialists And Make Choices
Based On Their Characteristic Needs And Mental Cosmetics, Efficiency Increments. They
Too Found That Individuals Work Best When Sorted Out Into Bunches, When They Can
Have Viable Two-Way Communication With Their Pioneers, And When Pioneers
Communicate And Share Data Openly As Portion Of An By And Large Cohesive Decision-
Making Process. The Human Relations Development Is Seen As The Antecedent Of The
Cutting Edge Human Assets Work.
Some Time Recently The Human Relations Development, Laborers Were
Ordinarily Seen As Replaceable Cogs In Authoritative Frameworks That Put The
Extreme Esteem On Higher Yield.

 The Human Relations Movement Emphasized The Importance Of The Human


Element In Job Design
 Elton Mayo Hawthorne Studies On Worker Motivation 1930
 Abeham Maslow – Motivation Theory 1940s; Hierarchy Of Need 1954

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IV. Decision Models & Management Science

The Decision Model Is An Mental Layout For Seeing, Organizing, And Overseeing The Trade
Rationale Behind A Trade Choice. 1 An Casual Definition Of Commerce Rationale Is It Could Be A
Set Of Commerce Rules Spoken To As Nuclear Components Of Conditions Driving To Conclusions.
A More Formal Definition Of Trade Rationale Is “A Implies By Which A Trade Determines A
Conclusion From Facts.” So, Commerce Rationale May Be A Medicine For The Way Commerce
Specialists Need To Assess Actualities In Arrange To Reach At A Conclusion Where The
Conclusion Has Both Meaning And Esteem To The Commerce. Therefore, A Commerce Choice Is
Characterized As A Conclusion That A Trade Arrives At Through Trade Rationale And Which The
Trade Is Curious About Overseeing.

Management Science (MS) Is The Wide Intrigue Consider Of Issue Tackling And Choice Making
In Human Organizations, With Solid Joins To Administration, Financial Matters, Trade, Designing,
Administration Counseling, And Other Areas. It Employments Different Logical Research-Based
Standards, Procedures, And Expository Strategies Counting Numerical Modeling, Insights And
Numerical Calculations To Progress An Organization's Capacity To Order Sound And Precise
Administration Choices By Arriving At Ideal Or Close Ideal Arrangements To Complex Choice
Issues. Administration Science Makes A Difference Businesses To Realize Objectives Utilizing
Different Logical Methods. The Field Was At First An Outgrowth Of Connected Science, Where
Early Challenges Were Issues Relating To The Optimization Of Frameworks Which Might Be
Modeled Directly, I.E., Deciding The Optima (Most Extreme Esteem Of Benefit, Get Together Line
Execution, Edit Surrender, Transmission Capacity, Etc. Or Least Of Misfortune, Chance, Costs,
Etc.) Of A Few Objective Work.
Nowadays,

F.W.Harris Mathematical Model For Inventory Management 1915


Dodge, Romig, And Shewart – Statistics Procedures For Sampling And Quality Control,
1930s Tippet – Statistical Sampling Theory ,1935
Operations Research (OR) Group – OR Application In
Warfare George Dantzig – Linear Programming, 1947

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V. Influence of Japanese Manufacturers
Japanese Generation Administration Got To Be A Prevailing Impact Within The Field Of Operations
Management When, Within The Early 1980s, Information Of Its Fundamental Components Got To
Be Known Past Japan. Those Components – Fast Set-Up, Little Lots, Cells, Kanban, And So On, Are
Well- Known. Instead Of Clarifying Them Once More, This Paper's Objective Is To Investigate The
Sequence Of Occasions Driving To JPM As A Competitive Drive Universally, As Well As Its Affect
On Hypothesis And Practices In Operations Administration. JPM's Advancement Incorporates
Moving Terminologies, Fusions And Contaminations; Constrained Expansions From Fabricating Into
Administrations And Innovative Improvements, Generally Of Western Root. Longitudinal
Investigate Information, Based On Inventory Patterns, Give Bits Of Knowledge On JPM's Diffusions
And Its Uneven Comes About. Latter-Day Astounding Slips And Disillusionments, Among Japanese
As Well As Western Companies, Raise Questions Around JPM's Supportability, As Well As A Few
Of Its Changing Manifestations. Whereas The Center Of Japanese Generation Administration,
Presently Over Three Decades Old, Shows Up To Have Gotten To Be Unequivocally Standard, Its
Current And Future States Areproblematic.The Quality Of Japanese Trades Merchandise Had As
Destitute An Picture As Any Within The Creating World. The Japanese Were Decided To Do
Something Almost It Within The Post- World War II Industrial Rebuilding Period. Getting To Be
Mindful, Getting Or Organized And Implementing Western Quality Control Procedures Constituted
The Pushed Of The Primary Fifteen A Long Time Of Quality Control Emphasis In Japan.
Essentially, Japanese Fabricates Created Administration Hones That Increased The Productivity And
Quality. The Companies Which Were Exterior Japan Was Fascinated By Their Approaches. The
Impact Of Japanese Companies Is Proceeding For The Predictable Future.

 Refined And Developed Management Practices That Increased Productivity


 Credited With Fueling The ‘Quality Revolution ‘
 Just In Time Production [1],

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3. Conclusion
Operation management monitors and controls the entire production system of organizations. It
ensures that all resources like raw materials and labors are efficiently utilized by organization for
production of its goods or services. Operation managers are responsible for fulfilling all
requirements of customers by delivering them products as per their needs. They take all crucial
decisions relating to production process like product and process design, inventory control,
quality control, capacity etc.

All these decisions are taken by them by doing research and analyzing properly the prevailing
situations. They work towards strengthening and enhancing the production system to minimize
the wastage and maximize the output. The whole activities of operational management revolve
around the conversion of inputs into outputs that is various products that every organization
manufactures.

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4. References
[1] [Online]. Available: Http;// Www.Google.Com.

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