Assignment of production and

operations management

Submitted To:

Dr.Anu sahi

Submitted By:

Vishali 201140
MBA1(a)

Topic : Role of operations management in corporate

profitability and competitiveness.
Introduction :
Operations management is an area of management concerned with
designing and controlling the process of production and redesigning
business operations in the production of goods or services.[1] It involves
the responsibility of ensuring that business operations are efficient in terms
of using as few resources as needed and effective in terms of meeting
customer requirements. Operations management is primarily concerned
with planning, organizing and supervising in the contexts of production,
manufacturing or the provision of services.It is concerned with managing an
entire production or service system which is the process that converts
inputs (in the forms of raw materials, labor, consumers, and energy) into
outputs (in the form of goods and services for consumers).

Competitiveness:
We have all competed in various types of activities, perhaps in sports, or school. There may
have been prizes or rewards for ranking high in these competitions. Business is no different. We
define competitiveness as the ability and performance of a firm to sell and supply goods and
services in a given market, in relation to the ability and performance of other firms.In other
words, how will one firm win over customers in order to become the product or service of
choice.

In simple words, competitiveness or competitive advantage denotes a firm ability to achieve

market superiority over it's competitors.

Competitive advantage and Key Purchasing Criteria

Competitive advantage is the leverage a business has over its competitors. This can be gained
by offering clients better and greater value. Advertising products or services with lower prices or
higher quality piques the interest of consumers. This is the reason behind brand loyalty, or why
customers prefer one particular product or service over another.

Each organization needs to have a deep understanding of their customers and what drives their
customers to make purchases. We refer to these as key purchasing criteria. They are the
factors which customers evaluate and consider when making a product choice.
Key Purchasing Criteria include:

Price – Firms need to understand how much the customer will pay for
an item. If products are seen to be very similar to one another, the
customer will choose based on price.

Quality – Many customers are willing to spend more in order to obtain

a product with specific characteristics or brand reputation. Not only are
we considering a product with a great design, but also, one that is long
lasting and defect free.

Variety – There is a part of the market that value the opportunity to

choose from a wide variety of products. They look for options to
change the style, colour, dimensions or technical characteristics.

Timeliness – Some customers care greatly about how long it will take
to obtain the product or service.

Operations management helps to earn

profitability of the firm:
Operations management in profitability:
The process that effectively plans, organizes, coordinates, and controls the operations
responsible for the production of goods and services. Countless decisions must be made at all
levels of an organization. Without proper operations management, there is a higher chance of
having various departments in conflict with each other. Operations management ensures that
you are able to effectively manage various attributes in the manufacturing organization such as
people, equipment, information, and technology.

● Product Quality - The quality of a product refers to its capability of meeting or exceeding
a customer’s expectations. Operations management ensures that products meet the
quality standards and offers opportunities to identify areas where quality can be
improved.
 ● Customer satisfaction - Customer satisfaction is essential for any manufacturing
operation as it ensures future business from your current customers. While operations
management takes care of creating products and services of high quality, it also ensures
that customer needs are met. When your operations are running smoothly, it will allow
you to deliver your products on time to your customers and increase their satisfaction.
● Revenue maximisation - Increased product quality and consumer satisfaction will give
your company to have a good reputation within the industry. This reputation will further
aid your company to attract more customers and expand its market share. In addition,
operations management involves identifying and optimizing the processes involved in
the production of goods or services.

● Waste Reduction - Waste reduction is one of the most important components of

operations management. Various techniques can be used to identify and eliminate waste
within manufacturing operations, such as lean manufacturing strategies and JIT
scheduling to manage inventory costs.

● Collaboration - Adequately implementing operations management strategies require

collaboration between many individuals at all levels of the organization. Many business
strategies involved in operations management include supply chain configuration, sales,
capacity to hold money, and optimal utilization of human resources.

● Flexibility: It facilitate to any changes. Management should arranging the activities in

such a manner that it would be easily changed with the dynamic environment.

● Cost Reduction: It include cost of hiring employees as well as cost of equipments,this

is very attractive attribute which also helps to achieve the profitability of the firm.

● Research and Development Activities: continuous research leads to innovation and

helps to sustain in market as well.operation management plays greater role in this field
and help to achieve maximum profits.

Conclusion:
At end ,we can say that operation management plays greater role to beat competition in the
market and increase overall Goodwill of the firm.Operations management can be challenging to
implement.it also ensures to comply with government regulations. It also focus on effectively
implementation of resources to ensure that their potential is being maximized .Operations
management impacts the overall productivity and profitability of any business enterprise. It
measures the efficiency of managers and other workers, hence accelerating individual and
company's progress. Operations management is the company's engine room where prudent
decisions and plans emerge.