Also, the manager should be able to resolve conflicts and mediate disputes between employees and members of the senior staff. Since workplaces are made up of people from diverse cultures, the operations manager needs to show tolerance and understanding to other people. Transcribed image text: Describe key aspects of operations management decision-making. Learn how your comment data is processed. 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Explain the examples OF 10 strategic decisions FRITO LAY operations management. What are the key aspects of operations management decision making? Question: Answer the following questions in brief. This blog post will discuss the most influential factors you need to consider when making operations management decisions. For a personal decision, the process can . Organizational Abilities. . This monitoring evaluates supplier capacity and productivity, as well as compliance with the Apple Supplier Code of Conduct. This means that most of the processes conducted manually, such as procurement, must transition to more efficient automated processes. BusinessEssay, 17 Dec. 2022, business-essay.com/operations-management-and-decision-making/. Dynamic- Operations management is dynamic in nature.It keeps on changing as per market trends and demands. BusinessEssay. The role of operations managers in the manufacturing sector includes production planning, production control, and quality control. Knowledge in social science is also necessary for understanding customer requirements, predicting demand, and other issues not related to accurate calculations. Here are the eight key points you need to know: Ascertaining Companys Objectives: The operations manager needs to be aware of the companys objectives in order to make decisions that are aligned with these goals. With decision matrix, SWOT analysis, and cost-benefit analysis, operations managers can make strategic decisions. For instance, if an operations manager is considering a new course of action, they will need to consider the risks involved and decide if the potential benefits are worth the risk. One of the very essential parts of management or achievement of goals and objectives, is decision making process. Topic: Operations Management and Decision Making 10. Managing operational decision making as a corporate asset means treating it as strategic, managing it explicitly, making it visible and reusable across the organization, and improving it constantly. Lin, S. P., Huang, J. L., Chang, J., & Kao, F. C. (2012, July). With these strategies, businesses can achieve objectives in a timely and cost-effective manner. One of the most important aspects of resource planning is forecasting. With a firm basis in these areas, Operations Management ensures that resources are utilized carefully by reducing waste and implementing cost-effective decision making strategies. Moreover, Apple Inc. strives for innovation in its facilities to optimize capacity and process efficiency. Design of Goods and Services. "Operations Management and Decision-Making." An operations manager needs to have good coordination by knowing how to integrate resources, activities, and time to ensure proper use of the resources toward the achievement of the organizations goals. Once you have a complete listing of ideas and solutions, you go through each one to decide which has the best chance of succeeding. Creativity is a critical factor among employees involved in product design and development processes at Apple Inc. 6. It may also need the operations manager to delegate authority to make decisions. Operations management involves planning, organizing, and supervising processes, and make necessary improvements for higher profitability. The system of interactions ensures that the outputs in this operational area are successful in making Apple excel in the design of its technological products. A properly managed supply chain process will result in an efficient production process, low overhead costs, and timely delivery of products to consumers. This aspect of decision making is simpler when you have a group of people involved the more people in the group, the more likely youll have a diverse and logical set of ideas to sort through. See our Privacy Policy page to find out more about cookies or to switch them off. In Apples case, the 10 decisions of operations management are carefully implemented through coordinated efforts in product design and development, sales and marketing, and the firms supply chain, along with the companys other business areas. Operations, Supply Chain, and Project Management course, Post-Graduate Program in Artificial Intelligence & Machine Learning, Post-Graduate Program in Big Data Engineering, Implement thread.yield() in Java: Examples, Implement Optical Character Recognition in Python. Besides that, latency means when you could foresee problem is coming but still couldnt change how you are going to make decision in time. An Analytical Network Model for Decision Support in Global Manufacturing Operations Management. As Operations Management has become key for manufacturing operations around the globe, it is important to understand the advantages and disadvantages associated with . This information is then used to decide how to allocate those resources efficiently. In fact, they may make dozens of decisions each day. 2) Collecting relevant facts, figures and statistics to facilitate and support decision making process. Operations management is an area of management concerned with overseeing, designing, and controlling the process of production and redesigning business operations in the production of goods or services. The concept of operations management includes a wide variety of components, as production has many departments and functions that need to be controlled. The operations manager is responsible for the efficient and effective use of resources to produce goods and services. In operational decision making, the decision makers have to consider about volume, latency, variability, managing risk, self service and personalized. Organizations are faced with thousands of decisions on a daily basis, and . Support your answers with relevant examples: 1. They reduce fraud and prevent fines. The first category includes fundamental principles that say that all operations consist of processes in which timing, quantity, and quality of tasks and data and their capacities can be combined (Holweg et al. One can identify dozens of operations management functions by considering them in more detail. These parts are social aspects, which are aimed at managing people, and engineering, which help the successful implementation of processes that require an accurate solution to the problem (Holweg et al. For example, managers need to know the number of raw materials necessary to produce the ordered goods and their prices from a different supplier to get a more significant profit. The operations managers responsibility is to ensure that the products sold to consumers meet their needs, as well as match current market trends. It was part of the companys turnaround and enabled the organization be more flexible and survive the financial crisis without taking government bailouts. To make a balanced decision, it is important to have a brainstorming session to identify all possible solutions. 2. Operations management decision making must begin with a thorough check of resources. Finance and marketing are also integral parts of any business as they make the existence and realization of the product possible. These decisions are usually short-term and have a direct impact on the operations of the organization. In this case, the input can be human resources, such as employees, capacities, and processes, for example, equipment, as well as materials, technologies, and information (Reid & Sanders 2019). Search for jobs related to Key aspects of operations management decision making or hire on the world's largest freelancing marketplace with 20m+ jobs. Q: Describe the decisions making an important element . We can distinguish seven main functions of operation management in the industrial enterprise: planning, scheduling, purchasing, controlling, quality control and inventory control. Operational management means managing the resources that are spent on the production and supply of goods and services. Inventory decisions involve. Operations management is the direction and control of the core business processes of an organization. Operations management is about managing every operation to make it as efficient as possible and support company goals. There are three ways that firms strategize to meet mission: differentiation, cost leadership, and response. Thank you for reading CFIs guide on Operations Management. This success highlights the importance of Apples strategic approaches to achieve high productivity goals and objectives in operations management areas. To ensure that operational decisions are effective, you need to manage operational decision making. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); This site uses Akismet to reduce spam. Cost-Benefit Analysis: There is no better way to make decisions than by doing a cost-benefit analysis. It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed and effective in meeting customer requirements. Conventionally, these functions can be divided into three types according to the kinds of key elements, such as design, measurement, and improvement (Holweg et al. Usage of technology in operation management has ensured that organizations are able to reduce the cost, improve the delivery process, standardize . Despite this limited approach to seller authorization, the company is now among the most profitable in the world, and Apple Stores have the highest revenue per square foot of retail space in the United States. 4. Gather information. If you make one wrong decision, it can ripple effect throughout your entire organization. Determine why this decision will benefit your customers or fellow employees. It is used across industries as a guide to operations management. Monitor progress with consistent reports. Another key aspect of decision making is the evaluation process. You will recieve an email from us shortly. A strategic plan starts with the vision and the mission statement of an organization. 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