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Operations Management
Nowadays business can only survive with high productivity, quality and processes. Operations management is a subject that deals with the issues on quality, process and productivity. Every management student needs to study this also need to have an idea about these salient features of a firm. The major role of operation system is to give an idea on profitability and competitiveness. The subject is totally assumes the importance of manufacturing and service sectors in country's economy. Production system refers to the transformation of resource input to useful goods as output. Operations are needed to be organized into appropriate sequences so as to optimize and produce large system of production. The resource inputs can be different in different industry in manufacturing. They are:
1. Raw materials
2. Labor
3. Energy
4. Facilities and
5. Information
There are four elements of competitiveness that enumerate operations functions: • Cost
Operations function is organized such that goods are produced at low cost. Various factors like effects of location, machine use, product design and inventory contribute to effective costing. Unit costs of product are reduced by effective production techniques. This is possible through improved production techniques, effective product design, and inventory management and lay out. Operations management considers quality as an important aspect. To ensure on time delivery of goods, supplier relations should be ensures flexibility in supply. The ability of flexible is highly dependable on the design of productive system.
Operations management defines operations strategy for a firm which provides it for compete in the market. Employees, suppliers, capacity and technology are the main components of operation strategy. Business management students need to understand operations planning and control and importance of operations management.
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Areas that are covered by a cost reduction programme - Product Design, Production Planning, Direct Materials Cost Reduction, Direct Labour Cost Reduction, Overheads Cost Reduction.
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