OPERATIONS
MANAGEMENT
, 1. During the earlier decades, the term ‘‘Operations Management’’ was mainly referred
to the manufacturing production. However, over the period of time the field has
expanded to include service systems as well. Nowadays operations management is
seen as set of activities which carefully plans, organises, leads and controls the
organisation’s operation. According to Krajewski, Ritzman and Malhotra (2013),
operations management is defined as the systematic design, direction, and control of
processes that convert inputs into services and products internally and for external
customers. It is the effective and efficient handling of operations or resources that
perform all or part of one or more processes in value creation (Krajewski et al., 2013).
A manager must ensure that resources are used to create a good or provide a service
as efficiently as possible and as effectively as possible. Heizer and Render (2011)
describes operations management as the set of activities that leads to value creation in
the form of goods and services by converting inputs into outputs. Operations
Management can be seen as a continuous improvement process to enhance quality,
productivity and customer satisfaction. Operations management is a vital part and
central core function of an organization to achieve success because it includes that
activity of managing the resources so as to produce and transfer products and services
(Slack, Chambers and Johnston, 2010).-To write as 'Slacks et al., 2010' Operations
represent a high percentage of the costs of an organization because most of the firm’s
revenue is spent on its operations management function (Heizer & Render, 2011).
This shows how important operations management is and the effective management
of the operations can prove very effective and profitable or else failing to manage it
properly could have an adverse effect on the company (Karlsson & Voss, 2009).
1.1. Forecasting
In such a world where technology leads the competition, there is a growing need for
forecasting. Moreover prediction of future demand becomes prerequisite since expensive
resources and reduced product life cycles makes ‘‘holding inventory’’ unfavorable.
Forecasting makes use of several projection techniques in order to offer the operations
managers with predictions concerning the future progress of CM metrics, demand and
1
MANAGEMENT
, 1. During the earlier decades, the term ‘‘Operations Management’’ was mainly referred
to the manufacturing production. However, over the period of time the field has
expanded to include service systems as well. Nowadays operations management is
seen as set of activities which carefully plans, organises, leads and controls the
organisation’s operation. According to Krajewski, Ritzman and Malhotra (2013),
operations management is defined as the systematic design, direction, and control of
processes that convert inputs into services and products internally and for external
customers. It is the effective and efficient handling of operations or resources that
perform all or part of one or more processes in value creation (Krajewski et al., 2013).
A manager must ensure that resources are used to create a good or provide a service
as efficiently as possible and as effectively as possible. Heizer and Render (2011)
describes operations management as the set of activities that leads to value creation in
the form of goods and services by converting inputs into outputs. Operations
Management can be seen as a continuous improvement process to enhance quality,
productivity and customer satisfaction. Operations management is a vital part and
central core function of an organization to achieve success because it includes that
activity of managing the resources so as to produce and transfer products and services
(Slack, Chambers and Johnston, 2010).-To write as 'Slacks et al., 2010' Operations
represent a high percentage of the costs of an organization because most of the firm’s
revenue is spent on its operations management function (Heizer & Render, 2011).
This shows how important operations management is and the effective management
of the operations can prove very effective and profitable or else failing to manage it
properly could have an adverse effect on the company (Karlsson & Voss, 2009).
1.1. Forecasting
In such a world where technology leads the competition, there is a growing need for
forecasting. Moreover prediction of future demand becomes prerequisite since expensive
resources and reduced product life cycles makes ‘‘holding inventory’’ unfavorable.
Forecasting makes use of several projection techniques in order to offer the operations
managers with predictions concerning the future progress of CM metrics, demand and
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