Which Of The Following Components Includes New Approaches To Producing Goods And Services?

Achieving Globe-Grade Operations Direction

82 Production and Operations Management—An Overview

1. Why is product and operations management of import in both manufacturing and service firms?

Production, the creation of products and services, is an essential function in every house. Production turns inputs, such every bit natural resource, raw materials, man resources, and upper-case letter, into outputs, which are products and services. This procedure is shown in (Figure). Managing this conversion process is the role of operations direction.

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The goal of customer satisfaction is an important part of effective production and operations. In the past, the manufacturing function in most companies was inwardly focused. Manufacturing had fiddling contact with customers and didn't always empathise their needs and desires. In the 1980s, many U.S. industries, such equally automotive, steel, and electronics, lost customers to strange competitors considering their production systems could non provide the quality customers demanded. As a result, today virtually American companies, both large and modest, consider a focus on quality to be a cardinal component of effective operations management.

Production Process for Products and Services

(Attribution: Copyright Rice University, OpenStax, under CC BY four.0 license.)

Stronger links between marketing and manufacturing also encourage production managers to be more outwardly focused and to consider decisions in light of their effect on customer satisfaction. Service companies find that making operating decisions with customer satisfaction in mind can be a competitive reward.

Operations managers, the people charged with managing and supervising the conversion process, play a vital role in today's firm. They control about three-fourths of a firm'due south assets, including inventories, wages, and benefits. They also piece of work closely with other major divisions of the firm, such as marketing, finance, accounting, and man resources, to ensure that the firm produces its goods profitably and satisfies its customers. Marketing personnel help them determine which products to brand or which services to offer. Bookkeeping and human resources assist them face the challenge of combining people and resource to produce high-quality goods on time and at reasonable cost. They are involved in the development and design of appurtenances and decide what production processes will be most effective.

Production and operations management involve iii chief types of decisions, typically made at 3 different stages:

1. Production planning. The first decisions facing operations managers come at the planning phase. At this stage, managers decide where, when, and how production volition occur. They determine site locations and obtain the necessary resources.
2. Production control. At this stage, the decision-making procedure focuses on controlling quality and costs, scheduling, and the bodily 24-hour interval-to-mean solar day operations of running a factory or service facility.
3. Improving product and operations. The final phase of operations management focuses on developing more efficient methods of producing the business firm's goods or services.

All three decisions are ongoing and may occur simultaneously. In the following sections, we volition accept a closer look at the decisions and considerations firms confront in each stage of production and operations management.

Gearing Up: Production Planning

An important part of operations direction is production planning. Production planning allows the firm to consider the competitive surround and its own strategic goals to find the best production methods. Good production planning has to remainder goals that may conflict, such as providing loftier-quality service while keeping operating costs depression, or keeping profits high while maintaining adequate inventories of finished products. Sometimes accomplishing all these goals is difficult.

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Production planning involves 3 phases. Long-term planning has a time frame of iii to five years. It focuses on which appurtenances to produce, how many to produce, and where they should be produced. Medium-term planning decisions cover nigh two years. They business organization the layout of factory or service facilities, where and how to obtain the resource needed for production, and labor issues. Brusk-term planning, inside a one-year time frame, converts these broader goals into specific production plans and materials management strategies.

Four important decisions must be made in production planning. They involve the type of production process that volition exist used, site selection, facility layout, and resource planning.

1. What are the iii types of decisions that must be fabricated in production planning?
2. What are the three phases of product planning?

Summary of Learning Outcomes

1. Why is production and operations management important in both manufacturing and service firms?

In the 1980s, many U.S. manufacturers lost customers to strange competitors because their product and operations management systems did not support the high-quality, reasonably priced products consumers demanded. Service organizations also rely on effective operations management in order to satisfy consumers. Operations managers, the personnel charged with managing and supervising the conversion of inputs into outputs, work closely with other functions in organizations to aid ensure quality, customer satisfaction, and financial success.

Glossary

operations management

Management of the production process.

production

The creation of products and services past turning inputs, such as natural resources, raw materials, man resource, and capital letter, into outputs, which are products and services.

production planning

The aspect of operations management in which the firm considers the competitive environment and its own strategic goals in an endeavour to find the best production methods.

Source: https://opentextbc.ca/businessopenstax/chapter/production-and-operations-management-an-overview/

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