Operations Management and Decision Making: A Comprehensive Report

This report delves into the core principles of operations management and decision-making within an organizational context. It emphasizes the role of operations managers in optimizing resource utilization, including materials, labor, and technology, to enhance efficiency and profitability. The report highlights the importance of strategic decisions, such as plant size and project management methods, along with operational aspects like inventory management, raw material acquisition, and quality control. It explores the use of specific tools like the economic order quantity formula to streamline processes. Furthermore, the report discusses the multifaceted responsibilities of operations managers, including vendor selection, timely product delivery, and the integration of innovative technologies to improve productivity, flexibility, and customer service. It also highlights the critical role of operations managers in managing risks, staying updated with industry trends, and aligning organizational goals with overall strategy. The report concludes by underscoring the importance of operations management in creating value for customers and driving organizational success.

Running head: OPERATIONS MANAGEMENT AND DECISION MAKING
OPERATIONS MANAGEMENT AND DECISION MAKING
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1OPERATIONS MANAGEMENT AND DECISION MAKING
Week 10
Operations management refers to administration of various business practices that
help in creating highest level of efficiency that is possible within an organizational premise.
This is concerned with converting materials and labor into equivalent good and services so
that the company can maximize its profit. The team of operations management in an
organization tries to balances costs with revenue so that organizations can achieve highest net
operating profit. It involves utilizing various resources from staffs, materials, technology and
equipment (Heizer, Render and Munson 2017). The operation managers in a company are
there to acquire, develop and deliver the goods to clients that are dependent on the various
needs of the client as well as the abilities of the organization. Operations management
handles various strategic issues that include determination of size of manufacturing plant and
project management methods. Other operational issues include managing inventory levels,
status of work-in-progress, and acquisition of raw materials, quality control and maintenance
policies. This helps in studying the usage of raw materials so that it is ensured that the
organization is wasting fewer resources and making good use of its available resources thus
cutting on costs. The operations managers make use of various formulas for instance the
formula of economic order quantity that helps in determining when and how to process large
inventory orders and how much of the same needs to be kept as stock. In order to become an
effective operations manager, it is necessary that an individual understands various processes
which are essential in the working of an organization. This also includes having a clear
understanding of logistics and the operations manager is the one who finds different vendors
that can help supply appropriate goods at reasonable price (Reid and Sanders 2019). It is the
work of operations manager that the products are getting delivered to the customers in time.
Two essential drivers of being an operations manager are organization and productivity. This
work requires both being versatile and innovative at the same time. Operations management

2OPERATIONS MANAGEMENT AND DECISION MAKING
helps in transforming the inputs into outputs that in turn provide some sort of added value to
the customers. Operations manager make use of ideas and different technologies so that
productivity of the organization can be increased at the same time costs can be reduced.
These managers also help in improving flexibility ensuring that customers’ needs are met.
Overall the operations managers can be said to be effective in bringing improvements in
customer services, enhance the quality of product and checking delivery time. The main
objective of operations management is utilizing various resources of the organization thus
creating products and services as per the demands of the customers. An effective operations
manager is capable enough to manage risks, bring in new technology to the organization,
keeping the organization updated with the new trends in the industry and making
organizational goals as part of strategy (Mahadevan 2015). They manage the daily activities
within an organization in a seamless manner and help the organization in achieving the set
goals. The organization can make use of the available resources in a better way under the
guidance of an operations manager.

3OPERATIONS MANAGEMENT AND DECISION MAKING
References
Heizer, J., Render, B. and Munson, C., 2017. Operations management. Pearson Education
Limited.
Mahadevan, B., 2015. Operations management: Theory and practice. Pearson Education
India.
Reid, R.D. and Sanders, N.R., 2019. Operations management: an integrated approach. John
Wiley & Sons.