Operations Management in Practice
EXCERPTS FROM LETTERS FROM FORMER STUDENTS
part of an audit for a CPA firm includes learning about the systems of a client. A by-product of the audit is a management letter which suggests how the client might improve their systems. By systems I am referring to the accounting information systems, the inventory control systems, as well as the production process. In evaluating these systems, one must first understand
the generalities underlying .all systems. OM explains these generalities as they apply to production processes. The better one understands how processes work the easier it is to apply this understanding to different systems and provide your client with good suggestions for improving the efficiency of their operations The course you teach in Operations Management is
invaluable, and any student of accounting would be a fool to blow it off and try to just get by without learning
If I were to call you on the phone and tell you what I do for work, I think I would hear some of the following from
you I told you so.You should have paid more attention in class.' 'Maybe if you even went to class Well I have been busy working for the Gillette Company as a production analyst. Basically, it's OM allover again, making sure that the production is running smooth!) and keeping management pleased. It's unreal how nucleon your class takes place in my everyday work.
Scrap rates, net average hours of production, efficiency, sample sizes, shifts; the number of hours a machine can run with a certain product. Putting in 70 hours a week and learning OM all;over again just kills me, because if I had given some effort in your class who knows I am sure that you are giggling to yourself and say ha ha, that ought to teach him not to have missed any my classes. I thought that maybe some of your student that are like me could benefit from this e-mail.
these three areas can be viewed as a top-down approach to operations management the decisions made at the higher level(s) acting as constraints on the lower level.(s). The strategic issues are usually very broad in nature. addressing such question as
- How will we make the product?
- Where do we locate the facile(tor facilities
- How much capacity do we need?
- When should we add more capacity?
eloquently by necessity the time frame for strategic decisions is typically very long, several years or more, depending on the specific industry. rations management decisions at the strategic level impact the long-range effect the company in terms of how well it can address the needs of its customers. firm to succeed these decisions must be closely aligned with the corporate i ions made at the strategic level then define the fixed conditions or con cancer which the firm must operate in both the intermediate and short term. For ex made at the strategic level to increase capacity by building a new plant rapacity constraint with respect to tactical and operational decisions. ;; a the next level in the decision-making process, tactical planning primarily ewe of how to efficiently schedule material and labor over a specific time thin the constraints of the strategic decisions that were previously made the OM issues at this level are
- How many workers do we need?
- When do need them?
- Should we Work overtime or put on a second shift?
- When should we have material delivered?
- When should a finished goods inventory?
Decisions in turn define the operating constraints under which the opera control decisions are made em decisions with respect to operational planning and control are very by comparison For example issues at this level include
- What job do we work on today or this week?
- to when as sign what tasks?
- what job have priority?