One should study Operations Management for the
It equips one with
the knowledge of how goods and services of an organization are produced.
is vital to any organization. This is because it is integrated with every other
business function within the organization.
It basically teaches
students on what Operation Managers do in an organization.
management is also a very dear part of any business. (Stevenson)
The four people who have contributed to the theory and
techniques of operations management are:
W. Edwards Denning.
Frank and Lillian
W. Edwards Denning
Was an engineer and physicist. He used methods of
statistics to analyze manufacturing processes. He was one of the pioneers Japan’s
high quality manufacturing and control in the years after world war. His methods
of work involved workers in decisions.
He founded and created the Ford Motor Company is the
U.S. He first used the method of moving assembly line in the production of Model
T, here, the unfinished Model T was moved from one station to another by use of
a conveyor from one assembly point to another.
Frank and Lillian
The two were a husband and wife engineering duo. The
two sectioned the workers hand motions into 17 separate parts, calling them ‘therbligs’.
They also advanced studies in work measurement.
He was an American Mechanical Engineer. Also known as
the ‘father/master of scientific management’. He used scientific techniques to
recruit, select and train workers and providing solutions to industrial
The three basic functions of a firm are:
goods and services. Involves creation of products in mass quantity depending on
the customer base of a firm.
involves creation of need for the consumers, letting them know that the
relevant products are available and selling the products to the consumers.
accounting. This function fundamentally oversees the funding for other
operations and monitoring the firm’s economic health (Jacobs).
The ten strategic operations management decisions are:
Design of goods
It outlines the necessities for operations. The
product design governs quality, tolerance and availability of needed human
It regulates the products’ standards as per customer’s
prospects. It lays down policies and measures to achieve the customer’s quality
Measures the quality of products, assets, technical
know-how and inputs made by the organization.
Is involved with the firm’s proximity to required
inputs and distribution channel. It figures out the firm’s logistics.
Fuses the firm’s size demands, human resource,
required technology and inventory. It also regulates material and information
Human resource and
Deals with employee selection and hiring so that the
needed skills are used as an extensive part of the whole organization
production of goods and services.
Sets guidelines on what is to be brought as input,
where from and why in integration with the organization’s plan.
Involves decisions on production stock of the firm. Deals
with meeting customer satisfaction requirements and production schedules.
Aids to set and bring to life the short and long term
schedules of the firm and use the available resources to fully reach customer
It takes into account the firm’s human resource, size
and production loads for consistency in the production process (Guy).
Areas significant to improving labor productivity are:
technology, skills and knowledge well.
skills of labor.
Using labor with
Better use of
Monitoring of productivity rate is a sure way to assess
whether a nation is able to deliver and increase her people’s living standards.
Improving productivity in capital, labor and management of resources is the
only way that a country can improve the living standards of her people.
The economy of United States changes inputs to outputs
with an increase of approximately 2.5% annually. The increase is due to a
fusion of labor available (10% of 2.5%), capital invested (38% of 2.5%), and
management of resources (52% of 2.5%) (BLS).
Measurement problems that occur when measuring productivity
quality of productivity.
Lack of accurate
units of measuring productivity.
Mass customization is the ability of a firm to be able
to produce a variety of goods and services in order to precisely meet the needs
of a consumer without weigh on production costs. Rapid product development acts
as a basis of aggressiveness in the economy. The two depend on an individual
firm being swift. The latter brings about clashing since managers cannot simply
alter designs or inputs in the production of goods and services. They however
use the tools of management such as technology and pacts to have more agility.
Reasons for difficulty in improving productivity in
the service sector include:
It is hard to
assess for quality of service.
It is equally hard
to industrialize or computerize service.
The service sector
fundamentally involves rigorous labor.
Most services are
performed by specialists especially for ones that involve intellect.
Most services in
the sector are aimed on special personal traits.
Taco bell used a
well-organized plan for precooked ground beef, cutting 8 seconds off the period
needed to prepare tacos.
It utilized energy
saving grills that conserved up to 300 million gallons of water and 200 million
kwH of electricity.
It changed the
management schedule of a supervisor from 1:5 to 1:30.
The productivity rate increased 1.5% as labor per hour
increased by 1.5%.
Productivity rate reduced by 4.4% as unit labor costs
increased by 4.8% in the third quarter.
Productivity rate increased by 3.0% in the third
quarter of 2017 with unit labor costs reducing 0.2% percent.
1. Bureau of Labor Statistics. “www.bls.com.”
April 2017. ww.bls.com. 29 January 2018.
2. Chand, Smriti. Your Article Library. n.d. Web
Article. 29 January 2018.
3. G.Y.F, young
finance guy blog. July 2015. 29
4. Jacobs, F. Roberts. Operations and Supply Chain
Management. Irwin, 2010.
5. Stevenson, William J. Operations Management. Irwin/McGraw