Page 24 - DMGT206_PRODUCTION_AND_OPERATIONS_MANAGEMENT

Unit 1: Operations Management Basics

3. Operations Management-Design Interface: Shrinking product lifecycles have been adding Notes
to the demands on the product development process. This is especially true for industries
that have a high clock-speed. Launching more new products faster requires tight integration
between the design and Operations Management functions. Initiatives such as simultaneous
engineering and early supplier involvement in the product design process not only add to
the role of operations but also improve the perception of value provided in the product
and service concept design process.
In addition, process development and engineering is responsible for production methods
necessary to make the products. This function has a great impact on operations. Therefore,
co-operation between these three functions, i.e., process engineering, design and operations,
leads to improved organizational performance.
4. Operations Management-Human Resource Interface: No plant manager anywhere would
ignore the role of good people management in running an efficient operation. The human
resource function includes operation’s approaches such as continuous improvement and
total quality that rely mainly on human inputs. Decisions about people and the organization
of the operations function interact significantly with both structural and infrastructural
decisions. Such issues are not unique to the operations function, however; they impact
other functions and are dealt with more effectively through the human resource
management function.
As organizations increasingly opt for ‘flextime’, the operations function has to develop
unique process configurations to accommodate employees with minimum disruption in
the flow of work. Operations Management and Human Resource departments have to
co-operate for recruiting and training employees, enhancing employee well-being and
development, and fostering motivation that are vital to the success of management policies
in practice.

5. Operations Management-Information Systems: Information systems provide, analyze,
and co-ordinate the information needs of operations. The distributed processing
environment and the growth and evolution of Enterprise Resource Planning (ERP) systems
for the organization have a direct impact on operations. It allows organizations to generate
relevant information and make appropriate information available when needed. The
operational plans become the driver of all business planning including recruiting, cash
flows, and marketing promotions. With Computer Integrated Manufacturing (CIM) systems
IT plays a very important role.

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Caution In services, the human resource focus is vital, as customer’s perceptions of an
organization are generally formed by their interaction with customer contact personnel,
such as customer service representatives.

In many organizations, similar activities are performed at different locations or at the same
location by different people. Examples would be a manufacturer with plants spread out all over
the world. However, knowledge is rarely, if ever, shared among employees performing similar
jobs. Information technology provides an option for managing and sharing knowledge. It
dramatically improves the task of managing knowledge. Advances in process automation allow
firms to redefine their core processes and design better systems to accommodate the needs of
product and service variety. E-commerce creates new demands for managing processes while
also providing new opportunities for reconfiguring them. Much progress in information
technologies is wasted if the operations function does not respond to the challenges created by
the increased availability of information and knowledge.

This approach emphasizes cross-functional thinking and relates it to the context of overall
activities of the organization. Operations Management measures the effectiveness of people,

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