Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
OPERATION MANAGEMENT IN
BUSINESS
Illustration Index
Illustration 1: Gantt Chart ..............................................................................................................11
Illustration 2: Critical path analysis ...............................................................................................12
LIST OF TABLES
Index of Tables
Table 1: Network planning ............................................................................................................11
TASK 1
Necessity of operations management in the business
Operation management is the very crucial part of the business operations. Every
manufacturing company focuses on developing the effective means of production process in
order to deliver the quality products to its consumers. This helps the company in minimizing the
defects and wastage while focusing on the cost optimization (Slack, Jones and Johnston, 2013).
The purpose of Operations management is to deliver the quality products to the consumer while
developing the effectiveness of the internal business operations.
The furniture business, deals with the manufacturing and supplying of its products and
services around the world (Wild, 2002). This needs the efficiency of work management while
managing the production time to meet the consumer demands. The operation management within
the industry focuses on managing the product quality, process management, production layout
and supply chain. The elements of the business operation makes it crucial for the business
growth and development. It helps in integrating he overall business operations while developing
Production process selection: The production process deals with managing the
production system and schedules in order to deliver the maximum output while managing
the product quality. It helps the company in deciding the best possible process to meet the
business demand and develop the desired layout (Akyildiz and et. al., 2008). The process
of the operations are focused on the company goals and objectives.
Toll Free No: +1 213-929-5632
E-mail: help@instantessaywriting.com
Get best Engineering Essay Writing Service by the expert writers of Instant Essay Writing,
we provide best writing services to students.
Capacity planning: This is a very crucial decision for the business unit. This function of
operation deals with the decisions regarding the maximum output production while
developing the quality aspects (Pinkerton, 2011). The furniture businesses focuses on
mass production in order to achieve the maximum sales thus capacity planning helps the
company in deciding about the current and future planning for the growth and
development of the organization.
Quality assurance and cost control: The current competition in the environment focuses
on maintaining the product quality (Haimes, 2005). This helps in managing the
production process and development in order to achieve the desired objectives. Every
business organization focuses on producing the quality products while minimizing the
cost of production in the environment. This helps the company in managing the profit
margin within the business (Zhixiao and Longzhi, 2011).
Inventory management: The production of products and services are not the only motive
of the company. The effective management of inventory and stock is significant for the
profit maximization (Geng, 2004). The furniture production leads to high storage
capacity as it requires large storage space. Thus, the most effective means of managing
the inventory is through economic order quantity. This strategy helps the companies in
managing the ordering cost and holding cost (Johnston, 2005).
Supply chain management: Supply chain delivers the effective means of production and
control within the organization (Jones and Robinson, 2012). The lower level of supply
chain management helps the company in managing the product distribution and
maximizing the product delivery to the ultimate consumers. While upper supply chain
helped the company in delivering raw materials while facilitating the production process
(Kloppenborg, 2011). The delay in the either one coult result in low demand.
The process of the manufacturing for every business unit follows the symmetrical process of
acquisition of raw material, process management, transforming raw material into finished goods
and finally sales and distribution of the goods.
The optimum condition provides the effective growth prospects in the market. The
transformation process in the second step focuses on minimizing the defects while assuring the
quality of products and services. The quick and advances process develops the high demand in
Toll Free No: +1 213-929-5632
E-mail: help@instantessaywriting.com
Get best Engineering Essay Writing Service by the expert writers of Instant Essay Writing,
we provide best writing services to students.
the market (Vaidya and et.al., 2013). The final step deals with sales and distribution which
focuses on minimizing the transportation cost while minimizing the risk of product damage or
loss. Thus, every organization develops the effective system of distribution to reach the ultimate
consumers.
The analysis of the furniture industry helps in developing the understanding that Three
E's reflects the internal health of an organization (Young, 2009). The company tends to grow and
develop while maintaining the elements of economy, efficiency and effectiveness. These factors
provide the effective demand for products and services within the economy while developing the
performance measurements sources. The mentioned elements can be described as:
Economy: This element focuses on managing the economic cost of production for the
company thus providing the products at the considerable price to the consumers (Slack,
Jones and Johnston, 2013). In order to develop this the organization focuses on product
acquisition at the minimum cost from the supplier. This helps in reducing the purchase
cost. Moreover, the economic process of production helps in maintaining the cost of
production for the origination (Wagen and Goonetilleke, 2007). All this help in managing
the cost and quality of products.
Efficiency: This element focuses on developing the smart way of operation thus
minimizing the cost, time and wastage of production. The organizations adopting this
measure acquires the effective achievement n the market. This helps the company in
developing the differential method to create an edge in the market (Sadler and Hines,
2002). The operations of the furniture companies are managed and maintained through
effectivity on product quality and minimization of wastage.
Effectiveness: this element focuses on creating the effective means of production system
where the products are produced such that it helps the company in satisfying the
The tension between cost and quality has been observed from ages in the market. These
are the two most crucial factors of business development. The high level of competition has
developed the large rage of close substitutes for the buyers (Jones and Robinson, 2012). The
production firms thus focuses on producing the quality products while minimizing the cot of
product to fight back the competition. Every organization has developed its own unique
equation of cost and quantity. The cost cutting measures may be low cost raw material,
ineffective protection process or low quality machinery. These factors help the company in
minimizing the cost but the quality deteriorates simultaneously (Slack, Chambers and Johnston,
2007). However high quality products demands high purchase cost to acquire the best quality
raw material, advances machinery and talented workforce. All these factors leads in increasing
the cost of protection but managing high quality products.
Thus, as observed the tension between quality maximization and cost minimization is
high. The ignorance of this factor leads to fall in sales and demand (Vaidya and et.al., 2013).
Thus, every business unit creates its own standards of production and quality in order to manage
Cost: The cost of the product is the first feature that grabs the consumer attention. The
wide options in the market helps the consumers in selection of products on the basis of
cost and quality (The 4 E's of Excellence. 2013). Thus, cot minimization is the key focus
of every business unit. The ignorance of cost factor leads to fall in demand.
Dependability: The integration of business functions is the very important function of the
operation management. Every business function is dependent on another. This creates an
integrated way of working while managing the cost efficiency and work distribution. The
business unit complete each task in order to attain the quality and objective. This helps in
developing the effective environment in the organization.
Toll Free No: +1 213-929-5632
E-mail: help@instantessaywriting.com
Get best Engineering Essay Writing Service by the expert writers of Instant Essay Writing,
we provide best writing services to students.
Flexibility: The mass production system has been replaced by the flexible production
system, where business unit focuses on the quantity of the products while maintaining the
unique quality of each (Kloppenborg, 2011). This flexible system helps in developing the
process while analyzing the possibility of improvements.
Quality: This is the most crucial part of management which focuses on developing the
high quality products at minimum cost. The cited organization also focuses on the same
in order to develop the demand in the market.
Speed: The cost and quality factors are accustomed to the speed of production and
assembling. If the production system takes long time in delivering the products to the
consumers, it leads in developing the fall in demand thus the furniture companies has
developed the system of managing the time frame for production.
TASK 2
Assessment of linear programming and critical path.
Linear programming is the mathematical tool to develop the effective situation of cost
minimization and profit maximization. This technique helps the organization in creating the
effective understanding of the limited variables of production. The cited origination must apply
this method in order to develop the effective techniques of allocating the proper resources to
required activities (Linear Programming: Introduction. 2012). Three elements that determine the
result, are variables, objective function and the constraint. Constraints helps in developing the
functions that will aid in determining the results on which the production decisions will be made.
Objective functions are developed to know the basic purpose of the operations. These can be
either cost minimization or profit maximization. On the basis of this the company is able to boost
its competency along with attaining the competitive edge (Pinkerton, 2011).
B Layout Development A 2 1
C Design finalization A 1 1
E Transforming process C 8 4
H Warehousing G
Slack, N., Jones, B. A. and Johnston, R., 2013. Operations Management. Pearson Education.
Wagen, D. V. L. and Goonetilleke, A., 2007. Hospitality Management: Strategy and Operations.
2nd ed. Pearson Education Australia.
Sadler, I. and Hines, P., 2002. Strategic operations planning process for manufacturers with a
supply chain focus: concepts and a meat processing application. Supply Chain
Management: An International Journal. 7(4). pp.225 241.
Hugos, M., 2011. Essentials of Supply Chain Management. 3rd ed. John Wiley & Sons
Bagchi, P. and Skjoett, T., 2002. Integration of information technology and organizations in a
supply chain. The International Journal of Logistics Management. 14(1). pp.89-108.
Akyildiz, I. F. and et. al., 2008. A survey on spectrum management in cognitive radio networks.
Communications Magazine, IEEE. 46(4). pp.40-48.
Pinkerton, E., 2011. Co-operative management of local fisheries: new directions for improved
management and community development. UBC Press.
Haimes, Y. Y., 2005. Risk modeling, assessment, and management (Vol. 40). John Wiley &
Sons.
Zhixiao, L. and Longzhi, L., 2011. Challenge and strategy of the wastewater treatment process
selection from the point of operation management. Water and Wastewater Engineering.
37(11). pp.25-31.