MBA503 Operations Management: Decision-Making Models - Kaplan Report

This report provides a detailed overview of operations management and decision-making models within a business context. It covers key aspects such as the decision-making process, potential errors, ethical and environmental considerations, and the distinctions between value chain, supply chain, and demand chain. The report also delves into the impact of technology, including Enterprise Resource Planning (ERP) systems like SAP, and discusses the evolving landscape of consumer behavior, forecasting techniques, and facility management. Furthermore, it highlights the importance of ethical considerations, corporate social responsibility, and the integration of environmental concerns into operational practices, emphasizing the shift towards eco-friendly products and socially conscious initiatives. The discussion extends to the Deming philosophy for total quality management and the application of Six Sigma methodologies for error elimination and quality enhancement, ultimately offering a comprehensive perspective on the challenges and opportunities in modern operations management.

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Operations Management and Decision Making Model

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Transcript
The speaker enters on stage, sets up his slides to give a presentation on decision making and
consumer behavior of business organization.
00:05 Decision making process involves a series of steps that are followed within a business
organization.
00:08 The process helps the manager undertake strategies that helps the organization to meet its
goals.
00.10 let us look deep into the topic.
00:11 for every business organization there is certain uncertainty and risks involved.
00:15 I can spot many entrepreneurs sitting in front of me, so things will be easier to explain.
00:20 the managers of the organization evaluate the business environment and compares with
national or global level
00:25 based upon the information collected, authorities of the organization develops action plan
that has positive impact upon the organization
00:30 for instance, modification of the existing marketing strategies or change in HR policies
00:35 Decision making is not an individual process rather it involves association of members of
the organization in order to promote collective approval to a decision.
00:40 Decision making concepts states that people are generally over conscious while taking
major decision
00: 48 if we consider the decision making from perspective of a customer, they decide to buy a
product that will serve an immediate purpose
00: 52 for instance, a customer will prefer to buy cold drink in summer season to relieve himself
from heat.

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00:55 on the other perspective the soft drink company will find the season to be appropriate for
launching new drinks.
00:60 as here as we can see, decision for marketing promotion comes into action
01: 05 Decision making process of an organization stand within limits of the authorities of the
managers
01: 10 sound decisions tend to give promiscuous outcome whereas impulsive decision shows
errors in decision making
01:18 pause to check next slides
01: 20 what are the major errors in decision making?
01:22 Indecisiveness: timidity to take challenging decisions and taking long time to take decision
01:30 results in decision errors
01: 37 whimsicalness: randomness or whimsicalness for the manager or consumer brings
decision error
01:42 not analyzing root cause of issue also makes errors in decision.
01:45 for instance, making financial planning without going through previous years issues
01: 52 Ethical issues in decision making include sustaining trust and demonstrating respect for
other colleagues and customers.
01: 59 commitment, competency and conscious are major three factors that are associated with
ethical decision making
02: 02 ethical issues in decision making
02:05 somebody calls outside
02:08 speaker gets back to his presentation
02:15 so what was I saying?

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02:20 ethical decision makings involve fair judgment that does not violate organizational norms
02:26 Organizational norms represent the codes of conduct of the organization.
02: 32 operation management ensures decision is implemented by promoting safety and cultural
diversity within organization.
02: 40 Environmental issues in decision making involves the macro and micro environmental
factors
03: 00 takes break
03: 10 Macro environmental factors refers general environment that produce Impact on the
business organization
03: 40 It is analyzed through PESTLE analysis. For instance, evaluating how introduction of a
technical tool such as SAP can benefit management. Does there is any remarkable changes in the
organization after application of the digital tool?
03: 55 Micro environment involves the operational environment of the firm. For instance,
stakeholders, market intermediaries etc
04: 12 it directly influence the organization
04: 25 Influence of discussion and activities on operation management and decision making is
also affected by
CSR
04: 32 companies integrate environmental and social concern in their operation management
04: 42 pause to check slides
04: 50 for example many business organization prefers manufacturing eco friendly products
04: 59 they also organize campaigns for social cause. Such as planting trees on any occasion
05: 05 the major Distinguish between value chain supply chain and demand chain are that

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05: 15 demand chain meets customer demand
05: 20 supply chain mostly focus on logistic channels
05: 22 speaker shows a comparative chart
05: 23 value chain delivers added value to its customer
05: 25 the supply chain deals in logistic management, manufacturing and payment issues
05: 12 demand focus on activities such as new product, investing customer requirement and
refining existing products
05: 25 main activities of value chain include value added service or adding innovation to existing
one
05: 32 core objectives differ between the three in terms of demand
05: 35 supply chain fulfills demand, demand chain creates demand and value chain aims in
demand performance
05: 42 as a manager operational management practice involves certain skills
05: 45 organizational abilities, coordination of process, managerial skills etc
05: 48 indicators affect operation are two types
05: 50 Sales cycle affected by leading indicators that change prior economy adjustment such as
stock market, inventory levels, retail sales etc
05: 52 lagging indicators are reflected in GDP, income, consumer price index and currency
strength. It reflects history of economy, can’t be used for future trend
05: 54 a Business process model notation helps an organization to analyze the internal business
process through graphical representation. It also facilitates understanding its collaborators along
with the nature of transactions.

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05: 57 Facility management contribute organizational bottom line by its operation management
responsibility. It maintains organizational assets such as building, infrastructure and property that
enhance productivity.
05: 59 Process of organizational activities includes division of labor, making teams, task
allocation and establish relation among employees
06: 05 speaker takes break to answer query
06: 12 I prefer to study Consumer behavior through market research and collecting customer
survey reports. It represents the purchasing behavior of consumer along with their needs.
06: 15 I can analyze a stark difference between Consumer behavior now and those of 2030. Now
customer visit stores to select product but with the advent of digitalization there would be tools
to customize product.
06: 18 the economy is also likely to shift as per commodity costs
06: 20 Customer satisfaction after 10 yrs will be advanced. All products will be best available
with so many alternatives to choose from. The market researches will also develop strategies that
could be more customers centric.
06: 23 operational management follows Deming philosophy for total quality management
06: 30 among which the major points are focusing on improvement purpose, adopting leadership,
breaking down silos and driving out fear
06: 36 six sigma is also used as a tool in operation management. It is a statistical tool to eliminate
errors and helps to follow effective quality management system.
06: 42 the scopes of introducing technologies have widened in operational management
06: 50 speaker looks around
06: 55 Technology has shifted itself from development to product designs that lead to improve
managerial function and business process
06: 59 speaker thanks audience for listening

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