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Aspects of Operations Management | Article

   

Added on  2020-04-01

13 Pages2854 Words60 Views
Running head: OPERATIONS MANAGEMENT: : INDIVIDUAL ASSIGNMENT 2 1Operations Management: Individual Assignment 2Student’s nameInstitutional affiliation

OPERATIONS MANAGEMENT: INDIVIDUAL ASSIGNMENT 2 2Executive SummaryOperations management has become necessary in planning, scheduling, and utilizingorganizational resources. In this article, various aspects of operations management arediscussed and calculated. In the first section, the computation of the capacity is evident thatdefine the total system capacity and production situation. The findings show that capacitymanagement is important in managing the organization’s operations. For instance, capacitymanagement enhances the prioritizing business objectives and manage market demand.Statistical and judgmental forecasting ensures the manager balances these techniques todeliver the HR needs. In other sections, the computation of the economic order quality hasbeen done to determine the reorder point and avoid unnecessary costs. The managers mustalso consider scheduling procedures to minimize overstaffing. However, this can be achievedthrough quality management principles that are critical in developing quality output.

OPERATIONS MANAGEMENT: INDIVIDUAL ASSIGNMENT 2 3Operations Management: Individual Assignment 2IntroductionOperations management is an important factor to consider when delivering goods and services to customers successfully. Efficiency, quality, and cost define the success of an organization. Given the significance of these operations management principles, the paper focuses on addressing them based on various circumstances[ CITATION Col10 \l 1033 ]. Forecasting provides an opportunity for operations managers to predict the values of variables based on demand planning. Capacity management provides the manager an opportunity to maximize the rate of output depending on time. The capacity management is important in delivering results.1.a.Compute the capacity requiredCapacity measurement involves the use of work order that specifies the work required to beperformed for the clients[ CITATION Tea11 \l 1033 ]. Indeed, any production situation requiressetup time that forms the basis of the total system capacity.Capacity required (Ci) = Setup time (Si) + [Processing time (Pi) x Order size (Qi)]Where;Ci representing the capacity required in units for work order i;Si represents the changeover or setup time for each work order i Pi represents the processing time for the work order unitsQi represents the size of order Therefore; ΣCi = Σ[Si + (Pi x Qi)]=45+1.2(50) + 30 + 2.0(100)=335 minutesb.What percentage of total capacity required is setup time?

OPERATIONS MANAGEMENT: INDIVIDUAL ASSIGNMENT 2 4The setup time is a percentage of capacitySetuptime=¿¿Setuptime=(45+30)335¿0.2239¿22.39%The importance of capacity management in managing the operationsCapacity management has proved critical in helping an organization to manage itsmarket demand based on the business priority. To this effect, the business can achieve itscapacity by focusing on certain critical processes[ CITATION Tea11 \l 1033 ]. Studies havedemonstrated that companies which adopt capacity management techniques have achievedthe best return on investment[ CITATION Giu15 \l 1033 ]. For instance, the resource-hungryapplications should be identified thus avoid spending resources on irrelevant activities but usethem efficiently. Good capacity management ensures the management make informeddecisions relating to investments. Without a doubt, capacity management has helpedcompanies to deliver results. In most cases, it proves significant to understand the pastperformance and trends, future business needs, current service delivery, and supporting the ITinfrastructure[CITATION Col10 \l 1033 ]. Therefore, capacity management ensures the future andcurrent capacity are addressed cost-effectively. Capacity management focuses on appropriate information technology capacity. Ithelps the company to reduce risks because it can help the management to identify thesufficient resources for any application. The goal of capacity management is to increaseefficiency. This focuses on the efficient usage of the future and existing resources[ CITATION

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