10 Critical Decision areas of operation management Essay

I. Goods and service heading. According to Henzer (2004), devise of goods and intention defines much of the transformation functioning. The factors of speak to, superior and human resources moldiness be do during the stage. Operation direction of product and operate is also distinct because overdue to different characteristic and tangible / intangible feature.II. Quality. guest has a very extravagantly tone metre nowadays and operation management ratiocination in select moldiness be clear and strict for its members to envision and comply. It must readiness a quality, standard and operating procedure to tinct customers high expectation.III. Process and substance design. Manufacturing of physical products whitethorn have higher importance on adjoin and capacity design than operate operation. Operation management (product) should find out what process it, what type of technology and to what extent, human resources, quality and maintenance that de terminal figur eines its basic cost structure. run operation decision on this part is much simpler and it can determine by customers who directly involved in the process. For example, customer depart ask tailor to design specific fashion clothes. Capacity design issue is censorious for services because it will try to reduce waiting meter and avoid lost of sales due to insufficient capacity. For manufacturing capacity design is establish on firms financial capability, forecast for time to come and market demand.IV. Location can be an orbital cavity for operation management to decide and with globalization of business, operation managers too must think global. For physical goods, location filling can be determined by pools of qualified human resources, technology, raw corporal, ingress to market and government policy. For services as it is direct to customers, the location is determined by market accessibility or rise to customer as possible.V. Layout design. Material flow, process selecti on technology used, capacity needs, workers needs, instrument requirement, and capital will influence thedecision for layout design. For services such as hotels, beside capacity needs layout also will produce its attributes and features to the customers.VI. Human Resources and Job Design Employees is the constitutional part in the total trunk design. Operation management must set a policy to set force standards to ease transition of skills, improvement of knowledge, skills and abilities (KSA), pass on a balance work and conduct quality in an effective cost target. For services one extra bea operation management should touch, which is customers relationship that they atomic number 18 dealing directly.VII. Supply Chain focal point Decisions that have to take place of what to produce, what material to buy, from where, how is the cost and how is the delivery from supplier to the nett end customers in on-time delivery and token(prenominal) cost possible. It is much critica l in employment of goods than services.VIII. Inventory Decisions on how and where the blood level to keep long term customers satisfaction, suppliers, material availability for not to disturb the yield, human resources needed for this purpose and substantial the holding cost from financial perspective. Goods production are more push because shaper may kept raw material, in progress work order and last(a) goods while services is not critical as it is directly produce and throw simultaneously.IX. Scheduling Efficient way of allocation, fit and management of materials, capital goods and human resources to efficiently produce the final goods from the input available. Schedules are more formal in goods production with short, medium and long term preparation to accommodate customers demand. For services the demand is more direct and volatile and often concern on human resources and KSA availability to meet current customers needs.X. Maintenance Decision must be made regarding the desired level of dependability, stability and systems must be schematic by management to maintain that reliability and stability.