Today’s operations managers, those responsible for producing and delivering the goods and services that we use every day, face a wide variety of challenges as we enter the twenty-first century. The highly competitive business environment that currently exists, caused” in large part by .. the globalization of the world’s economies in conjunction with the growth in e-commerce, has shifted the balance of power from the producers to the consumers. In so doing, consumers are now demanding increased value for their money. To put it simply, they want more for less. From an operations management perspective this means providing continuously higher-quality products with shorter delivery times and better customer service while simultaneously reducing labor and material costs, and increasing the utilization of existing facilities-all of which translates into higher productivity.
To accomplish all of this, operations managers are turning to a wide variety of technologies. These include the use of robotics on assembly lines and automation, which can take the form of ATM and vending machine
purchases with cell phones. In the forefront is the increasing use of information technology, driven by an prov telecommunications infrastructure, which also is provide faster service at lower costs. Examples here include Internet and customer support centers, which now can located in any corner of the world. Those firms that ignore the important role of op sons management within an organization pay a price: future, as evidenced by the many dot-com bankruptcies have occurred in recent years. Many of these firms virtual in every sense, in that all they had were website with no operational infrastructure to support them. can be compared to putting up wallpaper Without having wall behind it!) Stories abound of Christmas shoppers could not get deliveries 9n time (and couldn’t even to someone about the ‘problem) and virtual banks were incapable of providing customers with something simple as deposit slips. In every case, these custom took their business elsewhere as a result of their bad experiences, never to rectum. What-Is Operations Management? An Organizational Perspective Operations management, as is the case with every functional area within an organization can be defined from several perspectives: one being with respect to its overall role contribution within an organization; the other focusing more on the day-to-day activist that fall within its area of responsibility. From an organizational perspective, management may be defined as the management of the direct resources that are require to produce and deliver an organization’s goods and services. The marketplace-the firm’s customers for its goods and services–determines corporate strategy of the firm. This strategy is based on the corporate mission, an essence reflects how the firm plans to use all of its resources and functions (market finance, and operations) to gain an advantage over its competition. The operations strain specifies how the firm will employ its production capabilities to support its corporate . (Similarly, the marketing strategy addresses how the firm will ell and distribute goods and services, and the finance strategy identifies how best to utilize the resources of the firm, as shown in Exhibit Within the operations function, management decisions can be divided into three areas Strategic (long-range) decisions. Tactical (medium-range) decisions. Operational planning and control (short-range) decisions.