Factors Affecting Efficiency of Organizations

The provided document discusses the key factors influencing the efficiency of an organization. It emphasizes the importance of skilled employees with both technical and conceptual skills, as they act as assets to the company. The use of automation and AI, production lines, quality control systems, consumer satisfaction, and mass customization are also highlighted for their role in enhancing operational management and profit. The document provides a comprehensive analysis of these factors and their impact on organizational efficiency.

Running head: EFFECT OF IT ON OPERATION MANAGEMENT
Effect of IT on Operation Management
Name of the Student:
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EFFECT OF IT ON OPERATION MANAGEMENT
Introduction
With the fast growth of technology, Artificial Intelligence and Automation has
attained great achievements. They are covering the task of humans and also provide greater
efficiency of work (Russell, Dewey & Tegmark, 2015). The paper describes the importance
of AI and automation. Artificial Intelligence is meant to make the machines perform work
like humans.. Automation is the software or hardware that posses the capacity to perform
actions by itself. The paper further clarifies the importance of mass customization in
operation management. The report provides a brief detail on how the production lines and
quality system have their effects on the operation management. Finally, the paper brings to
light the effect of human skills on the operation management.
Robotics advancement and AI used in manufacturing
Initially the industries would obtain labours and workers at a minimal cost. Moreover
the labourers were easily available but today obtaining the labours at a low is cost has
become a great challenge for the organization and hence, the AI’s have a role to play here
(Graetz & Michaels, 2015). They increase the productivity level more orders manufactured in
a more real time scenario as compared to the manual labour. With the robot advancement
there will be greater chances of innovation the AI’s are intelligent enough to take decisions
based on the particular condition and also by analyzing the set of data. The AI’s are also
capable of making certain recommendations for different situations. Moreover, the AI’s
provide better customer support and increase the productivity of the organization hereby,
increasing the economic growth of the company.
Numerous organizations are adopting AI for mitigating the labour cost for example,
Foxcann, an electronic industry is deploying over 1000 robot factories to mitigate the labour

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cost and also to lower down the labour pressure. The implementation of the robots also
provides better quality work and also can serve for a longer period of time. Furthermore, the
Artificial Intelligence can also take decisions by analysing the data sets and such experiments
can also lead to great innovations and thus, enhance the overall growth of the company.
Mass Customization
Mass Customization is the procedure of providing such products that are meant to
satisfy the needs and requirements of the specific consumer (Pollard, Chuo & Lee, 2016). It
involves the process of altering the product such as to maintain the cost of the unit product
low. The main aim of Mass Customization is to provide customer satisfaction with the
product and also keeping the value of the product much closer to the mass produced product
(Kasiri et al., 2017). It minimizes the backtracking of work in case the customer is not
satisfied since, the features are chosen by the customer himself. Moreover, it also maintains
the flexibility of the product therefore, improves the operation management.
The methodology of the mass customization starts with the production of a base
where the customers can customize various features of the product that would be required so
to provide customer satisfaction. For example, the company eBay is undergoing a mass
customization approach in its business strategy so as to produce the products that meets the
customer requirement (Buffington, 2016). It is done so that the company would keep pace
with the ever changing demand of the customers. The process adopted by the company was
meant to produce goods of low cost and satisfy the unique desires of the consumers. It is
actually creating the process redesign so as to incorporate the enhancement in the
performance, invest low capital and gain high profitability.

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Production lines and Quality System
Production line is a term which is used to describe the sequence of processes through
which a product goes through during its manufacturing process. It is a sequence of operation
in which the materials undergo various lines of operations and a refinement procedure prior
to its introduction in the market (Wrede et al., 2016). The production line follows a sequential
pattern which makes the management of the operations easy. Following a sequential pattern
makes it easier for the operation manager to predict the errors and thus control the quality of
the product produced. Moreover, better planning of production lines and maintaining the
quality control enhances the performance as well as lead to the increase in the profits earned
by the organization. The quality management system is meant to look after the quality of the
product developed to perform the required auditing and hence, checking the customer
satisfaction provided by the product (Nanda, 2016). The production system and Quality
management system is meant to enhance the operation management in various ways. Certain
quality control techniques such as cost benefit analysis, benchmarking can add to the proper
work flow in an organization.
Moreover, with the improved production lines and quality management, the number
of defective product falls down to a great extent. In addition to lower defective products the
cost of the product also gets reduced and the delays can also be reduced to a greater extent,
thereby, enhancing the operation management of the organization (Goetsch & Davis, 2014).
For example, the company Sony has implemented the production lines and quality
management system so as to enhance its business operation management. It has implemented
quality management right from production planning to its design and manufacturing process
such that the product developed would meet the requirement of the customers and also the
company would enhance its efficiency.

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Human Skills
Human skill plays an important role in the enhancement of the organization. None of
the organization has the capability of running alone. It requires a team of skilled people to
work and gain immense profit. The communication skill of the employees in an organization
serves an important role as through proper communication the information could be
transferred from the higher authorities to the employees (DuBrin, 2014). However, the lack of
communication skill can hamper the productivity of the employee and henceforth of the
company.
Moreover, the confidence, control, calmness and self motivation of the employees
help in the proper functioning of the operation management of the organization (Navimipour
et al., 2015). The skilled employees act as an asset to the organization. They need to posses
technical as well as conceptual skills. Technical skills help them to enhance the productivity
of the organization and conceptual skill enables them to set the strategic goals so as to
increase the efficiency of the organization. These skills help to create an open environment in
the workplace as the employees would not hesitate to converse with other employees hence,
enhances the operation management. For example Toyota National Skills competition to
determine the skilled workers and develop human resource and thereby, enhancing the
efficiency of the organization.
Conclusion
Thus, with the above discussion it can be concluded that there are various factors
leading to growth and enhancement of efficiency of the organization. The AI’s and
automation contribute as a substitute to the high cost labours. They even produce much more
operations as compared to the human labour. The production lines and quality control
systems are also meant to enhance the efficiency of the organization and provide consumer

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satisfaction. Consumer satisfaction directly leads to the enhancement of the performance of
the organization. Moreover, the production line adds to the profit as the process makes sure
that the product is manufactured in a planned and structured way such that it meets the
requirements of the customers. Mass customization also provides consumer satisfaction as it
provides freedom to the consumers to design the product in their own way with a minimal
cost of implementation.

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References
Buffington, J. (2016). The future of manufacturing: An end to mass production.
In Frictionless markets (pp. 49-65). Springer, Cham.
DuBrin, A. J. (2014). Human relations: Interpersonal job-oriented skills. Pearson Higher Ed.
Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence.
Upper Saddle River, NJ: pearson.
Graetz, G., & Michaels, G. (2015). Estimating the impact of robots on productivity and
employment. Center for Economic Performance. http://cep. lse. ac.
uk/pubs/download/dp1335. pdf.
Kasiri, L. A., Cheng, K. T. G., Sambasivan, M., & Sidin, S. M. (2017). Integration of
standardization and customization: Impact on service quality, customer satisfaction,
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Nanda, V. (2016). Quality management system handbook for product development
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Pollard, D., Chuo, S., & Lee, B. (2016). Strategies for mass customization. Journal of
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Russell, S., Dewey, D., & Tegmark, M. (2015). Research priorities for robust and beneficial
artificial intelligence. Ai Magazine, 36(4), 105-114.

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Wrede, S., Beyer, O., Dreyer, C., Wojtynek, M., & Steil, J. (2016). Vertical Integration and
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