THINGS YOU SHOULD KNOW BEFORE APPLYING FOR MBA IN OPERATIONS
Operations Management enables businesses to adopt new business models while refining existing ones to reduce total costs, increase revenues, and meet the growing demands of their customer base. Long-term financial performance can be improved by gaining a competitive advantage in operations. Degree in Operations Management (OM) teaches students about the complex range of business activities involved in resource coordination and the effective delivery of value-added products and services to global customers.
Production management is a collection of interconnected management activities involved in the production of specific products. When applied to service management, this concept is referred to as operations management.
A PRODUCTION SYSTEM’S CHARACTERISTICS
- Because production is a systematized activity, every production system has an objective.
- The system converts various inputs into useful outputs.
- It compliments the other organizational systems.
- There is feedback about the activities, which is necessary for controlling and improving system performance.
WHAT IS THE SIGNIFICANCE OF OPERATIONS MANAGEMENT?
- Every organization’s productivity has increased.
- Contributes to economic growth and development
- Assists employees in receiving high wages
- Profitable for a company
- Plays a strategic role in a company’s competitive success.
SOME INTERESTING TERMS IN OPERATIONS MANAGEMENT
CAPACITY PLANNING—The process of determining an organization’s required production capacity to meet changing product demand. There are various types of capacity. Design capacity, for example, is the maximum amount of work that an organization is capable of completing in a given period; effective capacity, on the other hand, is the maximum amount of work that an organization is capable of completing in a given period due to constraints such as quality issues, delays, and material management. This MBA Specialization will provide you insight into worlds top financial companies.Â
EFFICIENCY means carrying out tasks at the lowest possible cost.
ENTERPRISE RESOURCE PLANNING (ERP)—Large, sophisticated software systems are used to identify and plan the enterprise-wide resources required to coordinate all activities involved in product production and delivery.
LEAN SYSTEMS—Also known as just-in-time manufacturing, it is a philosophy that takes a total system approach to create efficient operations by eliminating waste.
.MASS CUSTOMIZATION—A company’s ability to highly customize its goods and services in large quantities through its operations management function.
PRODUCT DESIGN is the process of deciding on a product’s unique and specific features.
PROCESS SELECTION refers to the process of identifying the distinctive features of the manufacturing process that will give the product its distinct characteristics. Process selection is typically associated with product design, as we must create a process that results in the desired product design. An excellent product design is worthless if a manufacturing process cannot be developed.
PRODUCTIVITY is a measure of how effectively a company converts inputs into outputs. It is typically expressed as a ratio of output divided by input. Productivity is essentially a measure of competitiveness and a scorecard of how efficiently resources are used. Productivity is measured at many organizational levels, ranging from labor and machine productivity to the productivity of an entire organization or even a country.Â
REENGINEERING—The process of redesigning a company’s processes to improve efficiency, and quality, and reduce costs. Many businesses follow a set of procedures that have been handed down through the generations. Operations management is a critical component of a company’s reengineering efforts.
SCHEDULING—The process of deciding on the timing and use of resources within an operation; it addresses issues such as who will work on what work schedule and how jobs will be processed in what order.
TOTAL QUALITY MANAGEMENT (TQM) is a philosophy that seeks to improve quality by eliminating the causes of product defects and making quality everyone’s responsibility in the organization. TQM holds everyone in the organization accountable for quality. TQM, which was practiced by some companies in the 1980s, became widespread in the 1990s and is now an area of operations management that no competitive company can afford to ignore.
FINAL THOUGHTS
 OM is concerned with the strategic and operational decision-making processes of the entire network of business entities that convert inputs (for example, raw materials and information) into value-added finished products and services for end customers. Extending operations management globally is becoming a core competency for competing in the twenty-first century. An organization’s operation is concerned with transforming a variety of inputs into the required output (services) with the required quality level. Management is the controlled process of combining and transforming various resources used in the operations subsystem of an organization into value-added services by the organization’s policies.
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