Operations manager. It is the area of business administration dedicated both to research and to the execution of all those actions tending to generate the greatest added value through planning, organization, direction and control in the production of both goods and services, all of which are intended to increase quality, productivity, improve customer satisfaction, and decrease costs. At a strategic level, the objective of the Operations Administration is to participate in the search for a sustainable competitive advantage for the company.
Summary
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- 1 The operations function
- 2 Basic functions
- 3 Main areas of activity in the operations function:
- 4 The resources it manages are
- 5 Definition of the operations strategy
- 6 Services
- 7 Characteristics of services
- 8 Elements that constitute a service
- 9 Sources
The operations function
- It is related to the production of goods and services.
- It is executed by operations managers.
- Goods and services result from processes of transformation of inputs into outputs.
- The manager works on the transformation process, making decisions about efficiency and effectiveness.
Basic functions
- Processes: itis the design of the material production system . Where a decision is made on the type of technology to be used, the distribution of the facilities, they analyze the process, balance of the lines, process control and transport analysis .
- Capacity: it is the determination of optimal levels of production of the organization neither too much nor few; Specific decisions include forecasting, facility planning, cumulative planning, scheduling, capacity [planning], and run analysis.
- Inventory: it is the administration of raw material levels, work in process and finished products. Specific activities include ordering, when to order, how much to order, and materials handling.
- Workforce: is the administration of specialized, semi-specialized, clerical and administrative employees. The activities to be carried out can be summed up as job design, job measurement, worker training, labor standards and motivational techniques.
- Quality: it is the party in charge of guaranteeing the quality of the products and services it offers. The activities to be carried out within these functions are quality control, samples, tests, quality certificates and cost control .
Main areas of activity in the operations function:
- Operations Strategy: Determine critical operations tasks to support the organization’s overall strategy and develop an appropriate functional strategy. Example: What should the operations function do well to support the strategy of a full service bank?
- Product planning: Select and design the services and products that the organization will offer to its clients, sponsors or recipients. Example: in which services do you have a better position to achieve excellence?
- Capacity planning: Determine when and how much of the facilities, equipment and labor should be available. Example. How many hours of customer service per year is it possible to offer?
- Inventory management: Decide the quantities of raw material, work in progress and finished items that should be stored. Example: What inventory of cash will be necessary? What inventory should be in each of the forms?
- Project Management: Learn how to plan and control project activities to meet performance, schedule, and cost requirements. Example: How will the trust department reorganization be handled?
- Programming: Determine when each activity or task should be carried out in the transformation process and where the supplies should be. Example: how many ATMs should be planned for each hour of the day? When should an extended schedule be offered?
- Quality control: Determine how quality standards should be developed and maintained. Example: what training should be given to cashiers to minimize errors?
The resources it manages are
- Person: itis the MO and the knowledge.
- Parts:are the materials and supplies.
- Plants:are the buildings, facilities, machines.
- Planning:production planning system and necessary resources, information for decision making and control of operations.
- Processes: the different phases of the productive system of the company or organization.
Definition of the operations strategy
It is a vision of the operations function that depends on the general direction in which decisions are made. It is integrated with the corporate strategy and is usually reflected in a formal plan. It must result in a consistent pattern of decision making in operations and a competitive advantage for the company. Operations must help the company to be more competitive. · Operations decisions must be consistent with those of other areas.
Services
It is a perishable time, an intangible experience carried out by a client acting as a co-producer. Service companies are organizations that facilitate the production and distribution of goods, help other firms to find their goals and add value to their personal lives. It is also a service provided by a company or person to a customer. Most of the services are intangible.
Characteristics of the services
- Intangible:cannot be touched, Example: room service.
- Perishable: there can be no inventory of services, they have a life time, Example, food.
- Heterogeneous:the service may have a base but it varies with the needs of each client. Example: the term of meat.
- Simultaneous:the quality of the service depends on the customer’s perception.
- The client has a participation in the service process:there may be a co-production, client-company. Example, a law firm.
- Inseparability:they cannot be separated from the company that offers them. Example, a hotel or a restaurant.
Elements that constitute a service
- Client
- Service provider
- Objects within the service:They can be purchased by a supplier or produced by the same company. Example: towels and food.
- Service location
- Equipment and furniture of the service.
- Information given to the client(brochures, menu, programs, etc.)
Operations management helps services to generate the greatest added value through planning, organization, management. As well as improving customer satisfaction and lowering costs.
