Organisations and Operations Management
Operations management is the term applied to the activities at the core of
any organisation's business and is concerned with the way in which the
organisation actually puts into practice what it has set out to do.
An organisation will undertake operations to make a product , provide a
service or a perform a combination of the two. Hence Glaxo manufactures
pharmaceuticals;BT provides telecommunications services.
Accordingly,operations management is concerned with managing the
way products are made and/or service delivered , which has a direct
connection with how the organisation achieves its objectives.
The principles of operations management ...view middle of the document...
An organisation deciding on a location will have to consider a number of
alternatives. The best location for a manufacturing organisation may be
one where the overall costs are minimised. In a service organisation the
customer is directly involved in the supply process , therefore issues such
as ease of access and speed of delivery have to be considered along with
Naylor identifies three location strategies.
âž¢ Product-based location
External and internal factors combine to influence facility location.
Commonly used by large organisations. It reflects the product
organisation structure in which different operating divisions are each
responsible for limited product ranges.
The company choose to locate divisions with product similarities close to
âž¢ Market-based location
With this strategy , a business places facilities to serve market areas:the
company locates its facilities such that they are conveniently placed for
customers. It reflects an organisation structure , this time one based on
geographic divisions .Markets are the basic reasons for the location or
retail outlets and distribution centres. Market based location allows
quick response to customer.
âž¢ Vertically differentiated location
Different stages of the supply process are in different place. Some
industries have vertically integrated firms who combine several
stages of the manufacturing cycle. Rather than locate the...