Management of Operations

Introduction

Every company has a unique way of transforming different input streams into optimum production, whether by producing goods or providing services. Both practices are critical in the complex world of operations management, which is in charge of preparing, coordinating, and supervising procedures in order to increase profitability. Operations management is a critical functional field in an organization that ensures that policies, values, and tools are applied successfully and efficiently within the organization, optimizing performance. The operations management principles, rules, and tools are particularly important in service businesses which are made up of various complex parts, often dependent on each other (Keegan & O’Kelly, 2015). The success of service businesses is based on forming an understanding and focussing on all areas. It is important for a service business to understand the importance of operations management principles, tools as well as rules and how they interact within a business. The operations need to develop effective procedures as well as build the necessary infrastructure and systems for delivery of services on time. This paper will discuss the importance of principles, rules, and tools used in the dynamic operations management environment.

Lean Principles

There are three important lean principles that can be used by businesses to survive in the current dynamic environment, and they include time, money and effort. Time is important in operations management given that it helps the business gauge how long it takes to undertake tasks or how long before a service is delivered to a client (Keegan & O’Kelly, 2015). One factor which makes time a guiding principle for lean implementation is its measurability and it is easily understood by everyone. Money is also a key lean principle given that businesses exist to make it as well as use it as a guideline to help see wastes and place value on issues. The effort is the amount of work you need to undertake in order to get a particular job done. Lean business mainly focuses on finding ways of reducing the effort required for getting the work done and in enabling more value-added activities for serving customers better (Keegan & O’Kelly, 2015). The lean rules are also important in operations management since they offer the necessary guidance on dealing with the business processes and people. Examples of lean rules that can be applied in the management of people include; firmness, fairness, and consistency while those that can be applied in business processes include looking, seeing, understanding, thinking and doing (Keegan & O’Kelly, 2015).

Operations Management Tools

Operations management requires the application of five fundamental lean tools including the physical flow, check sheets, process flow, run charts and teams (Keegan & O’Kelly, 2015). Process flow mapping is involved with the provision of a word picture of the processes used. It is important in the dynamic world of operations management given that it fosters the improvement of processes by filling the knowledge gap. An example of where the process flow mapping can be used is when dealing with an order whereby it becomes easier to map a theoretical optimum process to be used in recording the actual system in use (Keegan & O’Kelly, 2015). Another important tool is the physical process flow which is paramount in removing and reducing movements in a business process. The physical process flow tools help reduce waste in a business organization which contributes to reduced profit margins. Check sheets are other powerful tools for controlling quality by letting managers and the staffs capture real data effectively and efficiently. In most circumstances, the people providing information may not be fully aware of the harm they might be causing their colleague. Therefore, check sheets come as important tools for recording when something is not right thereby giving people a clear voice for them to be heard. The check sheet is a good way of presenting the basic facts of whatever is happening within a process thereby providing a way of addressing and removing the harm points. The run charts, on the other hand, are a visual representation of performance over time which provides an easy way of understanding performance. The run charts are important since they help monitor performance over time in those particular areas which are important to the business. They give companies the ability to know their performance in terms of whether it is getting better, the same or deteriorating (Keegan & O’Kelly, 2015).

Operations Control Systems

There are three basic forms of operations control systems used in lean processes, and they include; produce to order, Kanban and rate based scheduling (Keegan & O’Kelly, 2015). The produce to order approach of operations management is appropriate in fairly unique services or products or where low volumes are needed. In this approach, the service or product is produced only at the time of receiving an order. This is important given that very little stock of finished goods is held thereby reducing the chances of becoming obsolete or having the wrong configuration when an order is placed. An example is a restaurant whereby the customers are much satisfied with ordering a fresh meal rather than one which has been stocked for some time ready for sale. The Kanban which is also referred to as the two bin system is usually applied in medium volume to medium diversity item. A good example of this approach is in offices whereby you find an extra paper kept beside the photocopier to ensure there is no running out. There is also the Rate KBased scheduling approach which is most appropriate for mature services that already have secure market positions whereby the demand is steady. It is possible for a business to stock accordingly when the demand for a particular service is well known (Keegan & O’Kelly, 2015).

Quality Management Tools

The quality management tools are also important in operations management since they can be used to build competitiveness. One important quality data source is the customer complaints which give the business an opportunity to improve its processes (Keegan & O’Kelly, 2015). There are also other important quality management tools such as the Measles Diagram which is paramount in identifying areas that cause problems to businesses. This is an evolution from the check sheet tool whereby instead of working with a list of problems, a pictogram of the process is developed with dots or “measles” every time a problem emerges (Keegan & O’Kelly, 2015). An example of application is in the control rooms of large-scale service providers. Histograms are also important tools for representing data in a graphical approach. The delivery of quality services to customers can also be undertaken through the control of processes, making use of customer complaint reports and control charts.

Conclusion

In summary, there are many principles, rules, and tools that can be useful in the dynamic environment of operations management. The three most important lean principles are; time, money and effort which work together to ensure an organization runs smoothly. There are also lean rules such as fairness, firmness, and consistency that are equally important in operations management since they offer the necessary guidance on dealing with both people and processes. The list of operations management tools is endless and includes; physical flow, process flow, check sheets, run charts, teams and many others.

Reference

Keegan, R., & O’Kelly, E. (2015). Lean Service: A Guide for SME Owner/managers. Oak Tree Press.