Explain the Fundamentals of OM and the seamless Integration between logistics, Operations, and the Customer.
Explain the fundamentals of OM and the seamless integration between logistics, operations, and the customer – K. W.Green, R. A. Inman, L. M. Birou & D. Whitten, D (2014), “Total JIT (T-JIT) and its impact on supply chain competency and organizational performance. In International Journal of Production Economics, volume 147, pages 125 to 135 (Green, 2014).
Main Purpose of the Article
Operations Management includes various administrative processes within businesses aimed at creating highest levels of efficiency within an organisation (Petrovic, 2014). The scope of the domain concerns with converting raw materials and labour into services and goods, for maximizing profits of the organisation. In an attempt to balance costs with revenue for achieving highest net operating profit, various functionalities of Operations Management integrates seamlessly with logistics, operations and customers (Alfalla-Luque R. M.-L., 2013). OM utilizes resources, employees, equipment, technology for catering to their customers. For examining integration of various concepts and key functionalities of OM, the article by K. W.Green, R. A. Inman, L. M. Birou & D. Whitten, D (2014), “Total JIT (T-JIT) and its impact on supply chain competency and organizational performance. In International Journal of Production Economics, volume 147, pages 125 to 135 (Green, 2014). Operations, logistics and customers are the key drivers of OM. Thus, the scope of the current article examines such integration in accordance to the fundamental concepts of OM.
Key Questions of the article
The article aims to understand several diversified areas related to OM. Some key research questions that are identified in the article are;
Most Important Information (secondary and Primary Data) of the Article
The article makes use of various primary and secondary data for the purpose of analysis. The key source of data or information is secondary data that has been collected from newspaper, journals, books, websites, company magazines and other relevant sources (Wu, 2013). Limited primary data has been collected for the purpose of analysis and for arriving at results for the article. The journal has collected data from several organisations by means of interviews, surveys and questionnaire methods in order that impact of Operations Management can be understood. Post collection of such data, seamless integration of Operations Management with operation, logistics and customers has been established (Huo, 2014).
Main Interferences of the Article
The article has been successful in establishing the various aspects that are related to Operations Management. It is a field of integrated functions, where each function is dependent on the other for achieving overall organisational functional effectiveness. This article explains the fundamental concepts behind OM, which includes breaking down of several responsibilities for delivering in accordance with organisational goals (Abidi, 2015). Specific areas of OM incorporates handling of strategic issues that can help assess size of manufacturing capabilities, project management structures, information technology networks and so on. Other aspects of OM includes assessing work-in-process levels, acquiring of raw materials, inventory control techniques, quality control mechanisms, material handling and so on. All processes in OM is focused on increasing efficiency and effectiveness by reducing considerable amounts of wastes. Hence, operations, logistics and customers drive the entire focus of OM techniques (Danese, 2013). Logistics is a key functionality that relates to Operations Management through inventory systems. Handling logistics in a suitable manner can provide immense competitiveness to the business as they can arrange their warehouse accordingly. As the scope of Operations Management involves understanding trends and processes in global customer demands, they arrange their logistics in a manner such that requisition of raw materials with supply of finished goods. Such logistics arrangements in turn enable to meet customer demands and expectation levels (Zhang, 2015). While logistics are arranged in manner to meet targeted inventory levels and to keep warehouse at appropriate stock levels, operations needs to be conducted in manner that allows meeting of organisational profitability.
OM involves key functionalities and operations which are organized to cater to customer demands and needs. OM involves delivery of goods as well to customers, such that goods reach customers within agreed time frame. OM involves operations that ensure feedback from customers such that appropriate desired quality levels are met (Leuschner, 2014). Operations form an integral part of OM which takes in feedback from varied customers and encompasses the same for quality control mechanisms. Feedback acquired from varied customers is provided to relevant departments, who then incorporate the same for process improvements. Operations integrate seamlessly across various functions present across multiple departments such that logistics and customers can be catered to effectively. Such integration of functions results in effectiveness and efficiency of processes leading to success in overall OM (Xue, 2013).
Key Concepts of the Article
The article aims to cover various pertinent concepts of OM. As the field of OM concerns itself with various aspects of operations that are utilized to deliver final product or services to customers. It starts from raw materials and concerns itself with the entire process of transforming of products into finished products or services and then distribution to end customers. The article explains all pertinent functions that are connected across with the domain of OM that is used to deliver products to customers (Alfalla-Luque R. M.-G.-L., 2015). It integrates procurement, inventory, logistics, transformation processes, quality management, customers and so on. Thus, the focus of the article is to explain and integrate all facts that goes into making of a quality product or service that can satisfy customer demands.
Main Assumptions of the Article
Primary assumptions in the article include the following;
Implications
The journal provides a detailed insight and review of Operations Management processes and functionalities. All fundamental Operations Management processes and functionalities are directed at production of service of good that an organisation focuses on. In order to arrive at finished products there is a multitude of factors that underlie, as procuring raw materials, arranging necessary human resources, conducting processes, finishing products in factory, delivering products or services to customers. This entire range of processes requires tremendous commitments from various departments and resources. Hence, effectiveness and efficiency in Operations processes can only be entailed in case various departments are well integrated and coordinated with each other. Logistics has emerged to a key function that can drive processes concerned with operations. It can help redundancy by reduction in overall lag time, wastages by arranging for materials prior to time of production, delivering to customers as and when required (S. Tsanos, 2014). Such integrated functionalities can only take place in case there is presence of a platform where each department coordinates with the other to form integrated operations systems. All such processes in Operations Management are driven in turn by customers. Production processes and logistics can only be triggered in case customers’ demands so. Customer will demand products and services from the organisation only if they conform to certain quality standards. Thus, the key to all Operations processes is to attain effectiveness and efficiency in turn achieve Total Quality Management. TQM is the key process of Operations Management that is focused on quality as a means for attaining customer satisfaction levels. With rise of systematic performances it becomes integral to measure each specific standards of performance to produce high quality goods. Operations Management involves various decisions including those made for operations strategy, product design, process design, facility planning, quality management, inventory control and production planning. Each of these aspects of Operations Management are required to analyse current situations prevailing in the organisation and for improving effectiveness and efficiency of manufacturing or service related operations. There are multifarious benefits arising from integration of Operations Management processes especially those of logistics, operations and customers. These factors has been considered the key to drive revenue and innovation strategies across the organisation. A well-functioning logistics and operations processes is a key to drive sustainability within the industry (Baihaqi, 2013). Such integration allows to stay ahead of demands by positioning appropriately in the market. Globalisation has impended high demands to accommodate shorter product life cycles with fluctuating economies and emerging markets. This requires the logistics systems to be greatly responsive to allow for flexibility. This will benefit overall operations systems by responding to customer demands. Integrated processes allows for elimination of wastes to maintain sustainability within the industry. Waste is known to considerably increase costs associated with in production and also increasing inefficiency within systems. Eliminating wastes will also allow for higher profit margins.
Conclusion
From the above analysis of the journal and criticism, it can be established that OM is an integral domain of study. Organisations for attaining sustainability needs to aim at integrating key processes of Operations Management such as to drive its profitability. Any efforts at integrating such processes will allow the organisation establish core competency in the market and attain quality in its overall processes. The scope of this journal provides various relevant insights regarding similar processes of Operations Management. However, while integrating such functionalities organisations needs to take that there is no overemphasis in the same leading to further increasing in costs. Costs management endeavors should be primary focus within organisations aiming to attain sustainability and reducing redundancies. While an organisation strives to attain excellence in its overall processes, key to attaining success within its industry lies in having adequate control over its operations and processes. As field of Operations Management is extremely diverse it can be managed only through an integrated approach to overcome challenges in regards to the same.
Reference Lists
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