Analysis of Operations Management Techniques and Policies

This essay provides a comprehensive analysis of operations management, encompassing various key aspects essential for efficient business operations. It begins by detailing operations scheduling techniques, including methods like First Come First Serve, Shortest Processing Time, Earliest Due Date, Slack Time Remaining, and Critical Ratio, explaining how they can be applied to organize and optimize work processes. The essay then explores layout planning, defining different types of layouts such as process, product, combination, and fixed position layouts, and assessing their suitability for diverse business environments. Furthermore, it delves into work system processes, examining job design, job measurement, and job compensation strategies to maximize productivity. Finally, the essay investigates the importance of inventory management policies for controlling production costs, focusing on how these policies better prepare businesses for demand and supply fluctuations, aid continuous production, minimize administrative workloads and material losses, and prevent over/under ordering. The overall aim is to provide a detailed understanding of how these elements work together to enhance operational efficiency and effectiveness within a business context.

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ANALYSIS OF OPERATIONS MANAGEMENT
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Operations Management
1. Introduction
This essay describes operations scheduling techniques, layout planning, work system
processes and inventory management policies. Each of these concepts are explained in details
for providing a comprehensive idea regarding this and their applications in organizational and
business context.
Operations scheduling techniques refers to methods which provides context to establish
timing and allocate resource according to the organizational business process (Abad 2018).
Scheduling when described in terms of operations function which include manufacturing and
services, refers to application of equipment and facilities along with scheduling of human
activities and receipt of materials.
Layout planning refers to the method of identifying what is the best possible arrangement of
resources which require consumption of space within a facility (Ali Naqvi et al. 2016).
Work system processes refers to the process of value creation and designing a work system
that enhances productivity of the organization (Conley et al. 2019).
Inventory management policies refers to the strategies that provides guidelines and policies
regarding accounting for ensuing that inventory is properly controlled along with cost for
inventory management (Fahad et al. 2017). It also ensures that any issues regarding shortages
of materials is properly resolved.
2. operations scheduling techniques
In this context, it is described how operations scheduling techniques are applied for
formulating a plan to organise work. It provides a comprehensive idea regarding how to

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formulate a plan when organising work. It has considered five operations scheduling
techniques and these scheduling techniques are the followings:
a. First come first serve
b. Shortest processing time
c. Earliest due date
d. Slack time remaining
e. Critical ratio
When organizing a work, it is important that the organization follows proper scheduling
technique to maximize its productivity and optimize its resources (Abad 2018). This is
important for ensuing that organization is ensuing its production according to proper schedule
so that it is easier for them to deliver products or services to the consumers in time. Along
with this, proper scheduling of business operations is also necessary to ensure that waste in
production is reduced. When production is delayed, it not only waste time, but it also increase
cost of production which means money is wasted. When products or services are not
delivered to a client in time, it affects consumer satisfaction and therefore, it affects business
process. In order to maximize production, it is required to identify what is the priority of
organization, speed in production or timing as this is essential to select a proper scheduling
technique according to organizational requirements. There are various operations scheduling
techniques and it is classified into five categories. These categories are the followings:
First come first serve
This technique is effective while organization is producing a single item or items for which
similar processing time is required. When production of a company has these features, then
the organization might prefer this technique for scheduling its business operations.

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According to this technique, production is prioritized according to details regarding when
consumer has ordered product and production is started accordingly (Ali Naqvi et al. 2016).
However, it is important to identify that if company is producing products which require
different production times and needs to deliver in different time to consumers, then this
technique is not that effective and therefore, it should not be considered as it might affect
production.
Shortest processing time
Sometime an organization is required to produce products quickly and for that organization
needs to select shortest processing time and in this process, jobs are prioritized according to
timing required to complete those jobs which are considered for production. One important
aspect of this technique is that this method makes production faster and reason is that it
reduces time that is wasted when machines are required to switches between various jobs in
production (Conley et al. 2019). If there are similar products that contain pieces which need
to be produced quickly and pieces which need to be produced slowly, then this method is
applicable. First, machines applied for production will complete those pieces that require less
time and possible to manufacture quickly and then it will manufacture those pieces that
requires more time to manufacture. However, if those machines are require to manufacture
easy and complex pieces alternatively, then it will require more time than this approach
already analysed in this context. Therefore, when organization needs to manufacture products
where time of manufacturing is priority of organization, then this method needs to be
considered which ensures that manufacturing is effective and efficient.
Earliest due date
In Earliest due date scheduling method, production jobs are ordered according to required
time allocated for each of these jobs. It is first identified what are the due dates within which

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it is required to complete those jobs. Production jobs for product which has earliest due date
are completed first and then manufacturing of other products are considered (Fahad et al.
2017). This is an effective method when machines considered for manufacturing have single
jobs to do and due dates are spaced out. Sometime an organization has specialization in
manufacturing a single product and shipping deadlines are different for those products, then
this method is effective for that. It ensures that schedule considered for production is
effective and efficient.
Slack time remaining
In order to define slack time, mathematical equation is applied. In this equation, time required
to manufacture a product is subtracted from time that is due for that production for
determining slack time. In this method, slack time is defined for each manufacturing item and
then it is identified which item is to be produced first (Fan et al. 2017). An item which has
smallest slack time is produced first. An example is provided in this context to provide a
comprehensive idea regarding this method. If an item for example requires 5 days to be
produced and due date for this 6 days, then it will be processed first compared to item which
takes 1 day for manufacturing but it is due in 4 days. It is important to note that this method
might not be fastest method for production, it is applicable for production in which it is
required to ensure that production of items are provided according to schedule agreed with
consumers. Therefore, purpose of application of this method is not to make production faster,
but to ensure production is capable of meeting deadlines for manufacturing and providing
items to consumers.
Critical ratio
In critical ratio method, products are scheduled in similar way as done in slack time
remaining method. However, there is one difference and that is in this method time required

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for processing is not subtracted from time available to company for completing production,
instead it is divided to determine critical ratio. It provides time that is remaining for
completing production of an item in percentage and not an integer which is provided in slack
time remaining method (Haksever and Render 2017). However, it is important to identify that
whether subtraction or division will be considered for defining schedule, it is preference of
the organization, but schedule for prioritizing production should be similar for these two
scheduling methods.
3. Explanation of layout planning and work system processing
It is important to obtain knowledge regarding how layout planning and work system
processes within a business organisation.
a. Layout planning
It defines and explains different types of layouts along with their suitability to different
business environments.
There are four categories in which layouts are classified and these categories are the
following:
 Process layout
 Product layout
 Combination layout
 Fixed position layout
Layout panning is important for business as it provides a context to organise business
process. however, requirements of each business environment is different and therefore, it

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needs to identify which layout planning is effective for which business environment and
according to this, layout planning needs to be chosen as well.
These layouts are described in details in this context which provides overview of each of
these layout planning along with its applicability in various business environment.
Process layout
In process layout, machines and equipment which are similar are considered and arranged in
one department. There is similarity in functional type of these machines and equipment. It is
important to identify that processes are isolated and machines which are applied in each of
these processes woks together. Therefore, each process is kept separated although machines
are grouped together (Jang 2018). Process layout is suitable for batch production. In batch
production all machines which have similar functionalities are grouped together and kept at
one location. It is also suitable for productions of job order. It means that production is
followed according to consumer order and in this goods are produced in different variety and
in small quantity. Along with this, it is also applicable for catalytic crackers which refines
crude oil into petrol and other products that are extracted from this.
Product layout
In product layout sequence of processing is considered for layout and machines along with
auxiliary services are arranged in sequence in which processing of product is done.
This is applicable when volume of production is huge and in that case it is required to
consider separate production line for manufacturing of products so that volume of production
does not affect quality of manufacturing process (Korunka 2017). Product layout is also
suitable for manufacturing organizations which needs to ensure continuous production. In this
production process, raw materials are provided as input and products are taken as output. It is
required in production line which designs similar products and requires significant

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automation. This is applicable for industries which manufacture products like cements, steel,
sugar and automobiles.
Combination layout
In combination layout, process layout is considered along with product layout. Although
machines are arranged according to process layout, but process grouping is done according to
product layout that is to processes are grouped according to sequence in which product is
manufactured by the organization (Reid and Sanders 2019).
This is suitable for business, in which various products are manufactured in repeated numbers
and it is not required to consider continuous production.
Fixed position layout
In fixed layout, a major product that is to be manufactured is kept at a fixed location and then
equipment, labour and required machines are provided at that location.
This is suitable for manufacturing of large scale products that are bulky and heavy. Examples
of these products are locomotives, ships, and aircrafts. It is also suitable for large scale and
complex construction projects for example construction of buildings which not only requires
large scale manufacturing but also complex.
b. Work system processing
It explains how work systems for example job design, Job measurement, job compensation
are designed for obtaining best productivity while considering different business
environments.
Job design:

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Job design is an important aspect of job analysis. While job analysis provides description
regarding required skills and competency for performing a job role, job design is considered
for organizing required tasks for job role, job duties and responsibilities associated with the
job role (Korunka 2017). Therefore, it is important for an organization as it not only helps
employees in achieving personal objectives, but also helps organization to achieve its
objectives.
When job candidates have proper idea regarding job tasks that they need to perform along
with job roles and responsibility then it is easier for them to ensure that their skills and
knowledge are in accordance with organizational requirements.
Job measurement:
Job measurement in organizational context refers to the process of measuring quality of
performance of employees. In order to enhance productivity of employees, it is required to
identify issues in employee performance. Once these issues are identified, it is easier for
organization to provide its employees required assistance and to enhance skills and
knowledge trainings are provided by the organization (Jang 2018). Therefore, it is possible to
ensure that job training is in accordance with employee requirements. When employees are
capable of enhancing their productivity through application of required knowledge and skills,
it enhances organizational business process.
Job compensations:
Job compensations refer to total payments including cash and non-cash that is offered to an
employee. Compensation is not similar to what is paid to an employee in terms of regular
wages according to their job roles.
Compensation is an important aspect of human resource management and it helps to
encourage employees and improve organizational effectiveness. When employees are

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provided compensation, then it motivates them as it shows that organization is providing
value to effort that employees are providing for organization (Korunka 2017). When
employees are motivated, then they are capable of providing their knowledge and skills for
organization. Therefore, it is important for organization and it ensures that employee
performance is effective and efficient.
4. explanation of controlling production costs
It analyses why inventory management policies are important for controlling production
costs. There are various benefits of application of inventory management policies in
controlling production costs. Some of the benefits of application of inventory management
policies in controlling production costs are the followings (Slack 2018):
a. Better prepare for demand fluctuations
In market, demand for products changes significantly. There might be increase in
demand of a product and demand might be decreased. It is referred to fluctuations in
demand. If there are not proper strategies for this, then it will affect organizational
process (Reid and Sanders 2019). Therefore, it is important to ensure that
organization stock products effectively and for this proper inventory management is
required. If there is enough stock of inventory, then it is capable of absorbing
fluctuations in demand and ensures that it does not affect organizational process.
b. Better prepare for supply fluctuations
In order to ensure that organization is capable of managing supply fluctuations, it is
important to establish policies regarding stocking of products. If there is limit for
maximum and minimum level of stocks, then it is easier to optimize supply
fluctuations.

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c. Aid continuous production
Policies regarding minimum and maximum amount of production allowed per period
ensure that it is easier to provide required resources for production through enhanced
inventory control. In continuous production, supply of resources is of prime
importance and for this organization should have access to these resources (Haksever
and Render 2017). In order to ensure this, it is required to stock materials and allocate
it according to production requirements. However, it is necessary to ensure control on
stock of materials for which inventory control is essential. Therefore, proper
inventory management needs to be considered.
d. Minimise the administrative workload
Proper inventory management helps in reducing administrative workload. When
inventory control is effective, it requires less administrative efforts for managing
products, supplies along with materials (Reid and Sanders 2019). It even requires less
effort for supervising inventory clerks along with warehouse staff, therefore
administrative workload is less in this context.
e. Minimise loss of material due to pilferage and expiry
When inventory is properly managed, it not only ensures that products are stored
according to demand, it also ensures that products are also supplied according to
demand. Therefore, it helps to minimize loss of materials for pilferage and expiry.
f. Avoid over/ under ordering of inventory
It is required to ensure that products are stored only when there is demand. It does not
require to stock products if there are not enough buyers in market for that product.
Therefore, ordering of inventory needs to be in accordance with demand and it will

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ensure that over ordering of inventory is avoided. Along with this, it is also important
to ensure that ordering of inventory is not less compared to what is required for
demand in market. Therefore, it is required to avoid over or under ordering of
inventory for ensuring that analysis of inventory is effective and efficient (Slack
2018).
5. Conclusion
Operations scheduling techniques help to formulate plan to organise work. It is considered for
providing a comprehensive idea regarding how to formulate a plan when organising work.
There are five operations scheduling techniques for example first come first serve, shortest
processing time, earliest due date, slack time remaining and critical ratio and all of these
scheduling techniques are important and applied to according to requirements of
organization. While designing strategies for production and manufacturing process, it is
required to identify proper layout planning. There are four important layout methods and
these methods are process layout, product layout, combination layout and fixed position
layout. It is important to design inventory management policies as these policies are
important to control production costs. There are various benefits when inventory management
policies are effectively applied in controlling production costs. Some of the benefits when
inventory management policies are properly applied in controlling production costs are
effective analysis for demand fluctuations, effective analysis of supply fluctuations, strategies
for continuous production, minimizing the administrative workload, minimizing loss of
material due to pilferage and expiry and avoiding over/ under ordering of inventory.