Operations Management Essay Example | Topics and Well Written Essays - 1500 words - 2

Operations Management - Essay Example The essence of Operations Management is the need to make rational decisions in difficult circumstances with limited, imperfect information Operations management deals with decision making related to production processes to ensure that the results are produced according to specifications. Information about materials, labor and resources are used to obtain goods or services using one or more conversion and transformation processes. This adds value to the product. (Shim and Siegel, 1999, p. 2) Operations management begins with a step-by-step process and plans which are based on careful analysis and decisions of a product or service. Operating plans are made according to long-term and short-term strategy and are translated into schedules to be followed by production processes. Production planning and material control have to be coordinated with manufacturing in the execution of the plan. Main Points Operations management is basically concerned with the production of goods. But it is now linked to almost all areas of business activity. Operations management is concerned with the ‘design, operation and improvement of the systems’ that focuses on the creation and delivery of the company’s product or service (Lowson, 2002, p. 4). Since this definition emphasizes on the systems of the organization, it also emphasizes the internal and external systems that include resources and technologies for the creation and development of the company’s product or service. ... Operations management started as a concept and planning method during the early 1900s of rapid industrialization and the demands of munitions production in World War I. Management scientists Elton Mayo and Frederic Taylor studied people and productivity in factory. There were many firsts during this time as these social scientists provided theories and applications in their studies. Henry Gantt developed his now-famous Gantt chart which is used in project management. Operations management needs vast amount of information in order to be successful. Computers were then non-existent and with the emergence of mainframe digital computers in the 1950s and 1960s, processing and updating of critical path networks became faster and easier. Du Pont, an old-time defence industry organisation exploited this to produce powerful planning and scheduling tool. Globalisation and information revolution influenced the way operations are run in organisations. The Internet and Information Technology have made the life of the operations manager quite easier. This began in the 1970s when the rapid growth of information technology saw the emergence of automation in industries and manufacturing. Vast amounts of information from databases are now available to planners and operations managers. The emergence of IT brought another different kind of project manager on the scene; they are the IT project managers who possessed technical and mental skills needed to lead teams developing IT projects. (Lock, 2007, p. 3) Operations management can be subdivided into sections to make planning and operations easier: 1. Decision making tools and methods 2. Demand