The goal of most companies is to meet the wants and needs of their customers while providing a stable work environment and remaining profitable. These core objectives, which are generally included in the company’s strategic plan, can only be achieved with a high-quality operations management system. “Operations management is the management of processes that create goods and/or services,” (Stevenson, 2009, p. 4) and is the engine that keeps a company running. The scope of operations management is broad and includes many interconnected functions (Stevenson, 2009). However, “the primary goal of operations management is to match supply to demand” (Stevenson, 2009, p. 72). While it is difficult to rank the importance of the tasks which are
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Well developed and maintained systems lead to quality products and services, satisfied employees and customers, and the overall success and sustainability of the company. System design encompasses many phases of a production process and includes product development, facility specifications, work flow models, transportation routes, and the location of the corporation. The specifications and objectives of these areas are driven by the mission and vision of the company and are key elements in the organization’s operations strategy. There are numerous analysis, theories, and programs available to study and evaluate the effectiveness and efficiency of system designs. The approach utilized is dependent upon the nature and culture of the business. However, to be successful, a company must implement quality and utilization audits to monitor processes, efficiencies, and quality. Many companies have put total quality management (TQM) procedures in place. TQM examines process improvements in order to increase customer satisfaction and reduce the time and cost related to production. Another popular practice is the implementation of lean management systems. Lean systems strive to reduce all types of waste and to decrease …show more content…
Forecasting is the practice of predicting both the future needs and future productions of a company. Interfaces, an online business journal, states “accurate short-term forecasts provide guidance for decisions ranging from human-resource planning to inventory control and from call-center planning to cash-flow management” (Fildes & Goodwin, 2007). Forecasting may be accomplished by utilizing both quantitative and qualitative methods. Quantitative methods use historical data and past trends and tendencies to envision the future needs and performance of the company. On the other hand, qualitative methods depend on the expertise and judgment of the leadership of the organization. No forecast, regardless of the method used, is completely accurate (Stevenson, 2009). In fact, most experts recommend using more than one technique, or a combination of techniques, to obtain the most reliable results. A 2007 study revealed that seventy-five percent of the companies researched, used a statistical approach that was adjusted based on the judgment of management. The same article recommended starting with quantitative data and to only make adjustments based on important factors which could be documented and tracked. This process eliminates the bias and subjective opinions of management, which leads to more accurate predictions (Fildes &
Well developed and maintained systems lead to quality products and services, satisfied employees and customers, and the overall success and sustainability of the company. System design encompasses many phases of a production process and includes product development, facility specifications, work flow models, transportation routes, and the location of the corporation. The specifications and objectives of these areas are driven by the mission and vision of the company and are key elements in the organization’s operations strategy. There are numerous analysis, theories, and programs available to study and evaluate the effectiveness and efficiency of system designs. The approach utilized is dependent upon the nature and culture of the business. However, to be successful, a company must implement quality and utilization audits to monitor processes, efficiencies, and quality. Many companies have put total quality management (TQM) procedures in place. TQM examines process improvements in order to increase customer satisfaction and reduce the time and cost related to production. Another popular practice is the implementation of lean management systems. Lean systems strive to reduce all types of waste and to decrease …show more content…
Forecasting is the practice of predicting both the future needs and future productions of a company. Interfaces, an online business journal, states “accurate short-term forecasts provide guidance for decisions ranging from human-resource planning to inventory control and from call-center planning to cash-flow management” (Fildes & Goodwin, 2007). Forecasting may be accomplished by utilizing both quantitative and qualitative methods. Quantitative methods use historical data and past trends and tendencies to envision the future needs and performance of the company. On the other hand, qualitative methods depend on the expertise and judgment of the leadership of the organization. No forecast, regardless of the method used, is completely accurate (Stevenson, 2009). In fact, most experts recommend using more than one technique, or a combination of techniques, to obtain the most reliable results. A 2007 study revealed that seventy-five percent of the companies researched, used a statistical approach that was adjusted based on the judgment of management. The same article recommended starting with quantitative data and to only make adjustments based on important factors which could be documented and tracked. This process eliminates the bias and subjective opinions of management, which leads to more accurate predictions (Fildes &