Operation Management Assignment

A) The basic tent of the module (Production and Operation Management) is that the
capacity to provide product or services should be matched with the anticipated customer
demand for the product or services. Why is this basic to the operation management?

Answer
First of, the saying “The capacity to provide product or services should be marched
with the anticipated customer demand for the product or service” in my own
understanding means that the quantity of goods and services to be produced should be
in line with customer’s demand. That is to say if the demand of these goods and
services are high there should be higher availability of the goods vice versa.
In other words getting your capacity right means meeting the needs of your customers
without wasting resources. Capacity also refers to the amount of business you can do
over a set period of time. For example, the number of products you can make in a month,
or the number of customers you can serve in an hour. This helps reduce or avoid
constrained capacity such as lost sales opportunities or excess capacity which leads to
waste of money or resources. Sometimes you may need to adjust your capacity to meet
changing customers demand, and sometimes you may need flexible capacity when
demand is unpredictable.
In the light of this i would like to say it is basic to operation management because,
one of the functions of operations management is to control wastage of resources or
materials in the organization. Resources are utilized and matching the capacity of goods
produced with customers demand is one way a business can achieve utilizing their
resources and avoid waste.

B). List down and discuss the 7 main functions of operational management and the 5 main
functions of production operations management.

Answer

7 main functions of operational management

1. Operational Planning : Includes choosing a location for the business and scheduling
production. Where a business is located is directly related to how successful the
business will be . The fact is as true for a company that is opening its first factory or
store as it is for an older business that is expanding into a new area. Among the factors
to consider are nearness to markets, raw materials, labor supply, and transportation
facilities.

2. Scheduling : Operations involves setting beginning and ending times for each step in the
production process. It includes planning and checking the use of labor, machinery, and
materials so that production moves smoothly. Scheduling ensures that work will be finished
on time whether it is manufacturing automobiles or books or dry cleaning a blouse or shirt.

3. Organization : Is the activities that establish a structure of tasks and authority.

Operation managers establish a structure of roles and the flow of information within the
operations system. They determine the activities required to achieve the goals and assign
authority and responsibility for carrying them out.

4. Purchasing : In order to do business, a company needs the raw materials to produce

its goods or offer it’s services. It also must have machinery, office supplies, and any
other supplies it uses obtaining raw materials, machines and supplies.

5. Finance : being focused on finances in operations management is essential, not only for
the profit of the business but also in ensuring that the product supplied to customers is of
high standard. The delicate balancing act between creating a good or services that is
satisfactory to customers, but also allows for a fair profit for the business, is an essential
part of operations management.

6 . Quality Management : quality management also comes under the Umbrella of

operations management. Here the operation s management may have a dedicated team that
ensures consistency. They must rectify and defects, ensure that the quality is consistent,
and ensure that each product is ready for sale. The role of an operation manager is ro build
quality control team to ensure quality production.

7. Products design : product designers maybe the creatives of the team, but the
operations team is the eyes and ears that gathers information from the market. Once you
identify customers needs and marketing trends, you’ll relay what you’ve learned back to the
designers so they can make a strong product.
5 functions of production operations management

1. Selection of products and it design : production management helps the firm in

selection of proper products and design. Selection of the right products and it proper
design is important for the survival of every business in the market. It performs
several research programs to understand the wants of customers. Proper knowledge
of customer requirements helps the firm in deciding the right product. After choosing a
product, its proper design is selected to ensure that customer needs are fully
satisfied at a lower cost.
2. Products planning and control : planning and monitor production activities are quite
important for every business. Production manager keeps am eye on each and every
activities and elements associated with production operations. It decides in advance
what to produce and in how much quantity, then decides process for production, sets
 the starting and completion dates for production activities. It designs and exact plan
route in advance and implement that in operations to ensure timely delivery of orders.
Production managers monitors all production activities and take all necessary
activities as and when required.
. Location of Facilities : selection of proper location for setting production facilities is a
must for ensuring smooth functioning. It is along term capital decision which affects
the business organization in the long run. Production management properly analyze
the area before setting up production plans and other facilities of business. It takes
into account various geographical and other factors to ensure the availability of raw
materials, enough employees and various infrastructural facilities.
. Enhances Goodwill and reputation of business: Goodwill and image of a business is
a key element in attracting and retaining customers. Production management ensures
that the right quality products at the right cost are delivered to customers at the right
cost. This increases the overall confidence and satisfaction level of customers.
5.Machins maintenance and Replacement
Production management plays a significant role in the maintenance of machinery and plant.
Proper functioning of machinery is important for uninterrupted production. Production
management process focuses on continuous routine inspection of machines, performs
regular cleaning and oiling, removal and replacement of any obsolete and damaged
equipment’s. All these steps taken by production management prevent any machinery

C. What factors hinders (prevent) African policy makers from adopting production
separation management principles when meeting and anticipating customers
requirements.

Answer

The Economy: bad economy tends to affect policy makers from adopting operation and
production principles to meet consumers need. In Africa due high level of unemployment
which result in reducing the purchasing power of people tends to make business to lost
income and which causes many business to close because they can only survive from
costumer income

Lack of finance: business needs finance which can be use for it day to day operations.
Finance can be use to buy raw materials, may worker wages and salaries and also to pay for
maintenance. But businesses having low finance budge can cause they not to pay for it
operations and as such are unable to pay for raw materials to meet their customer needs

Government policy: In Africa as a result law and regulations set by the government tends to
affect business activités. Also law protecting domestic firms from foreign firms are not
enforced which allow these foreign firms to use their huge finance and resources to outshine
domestic firms which cause them to close or stop existing because they can’t compete. Also
law set by the government relating to firms producing unhealthy products like cigarettes and
alcohol for them to pay high taxes also affect business operations and the population
costumers that are not consuming them are small.