Operational Management for Finance and Marketing - MyAssignmenthelp

Question: Discuss about theOperational Management for Finance and Marketing. Answer: Introduction Operational Management is one of the fundamental parts of an organization. It plays an important role in gaining success. This area of management is concerned with creation of goods and services for the company. Operational management is important for all type of business organizations ranging from manufacturing to retailing. Operations include all those activities that are requiring creating and delivering a product or a service from procurement till its distribution. Operational management is one of the parts of three basic functions in an organization (Finance, marketing and operations) (Heizer Barry, 2013). The operational activities go in an organization regardless of the end of a good or service. Operation activities include product creation, development, production and distribution, managing purchases, inventory control, quality control, storage, logistics and evaluations of processes. Both manufacturing and service organization requires an efficient operational management (Slack, 2015). Importance of Operational Management Operational management has gained importance in the recent times due to public awareness of Japanese manufacturing units. Many business organizations have now realized the importance of operational management in an organization. In order to compete effectively on the global platform it is necessary to develop an effective operational strategy to support the mission of the organization (Russell Taylor-Iii, 2008). Managing the operations is related to choosing a right process. Running a business process requires a great degree of integration of resources at the right place. Time and cost related to the production is important in managing the resources. The secret of success lies in creating a robust competitive advantage that has its roots in the overall process. The overall process and the use of resources are important for a business organization in creating value. This can only be attained through an efficient operation management. Toyota Motors is known for continuous improvement in the process by delivering right quality automobiles. The company has been giving emphasis on the operation management (Sousa Voss, 2008). Operation management acts as a supplement all other activities in an organization. The research and development in an organization is necessary for developing a product. It is the basic need of the customer that has enough potential to be served. The finance department in an organization is concerned with management of cost and makes forecast about the different cost attached (Fixed, variable and overhead). The human resource department has to recruit the most efficient person with an appropriate set of skills. Similarly, the operational department has to integrate all the function in the organization. They have to make the product according to the given specifications. Operational department has to work according to the given budget by utilizing the best capacity (Krajewski, Ritzman Malhotra, 2013). Objective of Operation Management The two primary objectives of operation management are customer services and resource utilization. The main objective of any company at the end of the day is to have a satisfied customer. The operation management has to make sure that the customers are satisfied. The needs and the demands of the customers need to be satisfied by using the resources efficiently (Hill Hill, 2012). In case if the resources are not been utilized carefully the purpose of the organization will not be met. The resources on the other hand need to be used more efficiently. The overall purpose is to minimize the excess cost that is related to a product. Both the objectives of the organization need to be met more efficiently. These two factors are complementary in nature and benefit the organization in many ways. The primary objective of IKEA is to ensure that the quality norms are used in all the operations (Cachon Terwiesch, 2009). Key Issues As and when an organization develops, it has to plan and make strategies in order to deal with different opportunities and challenges. There is a necessity to develop an efficient system that is capable of producing quality services. This helps in meeting demands within the given time frame. Globalization Operation manager across world are facing competition from the companies. The companies operating overseas have to improve quality. This creates a problem for the operation manager to work on both the factors simultaneously. They have a duty to serve good products with better quality at a competitive price. The operation management process can only attain significant result if they understand the international trend of conducting business (Reid Sanders, 2010). Sustainability It is a process that helps in evaluating the longevity of a business. The three pillar of sustainability includes social, environmental and economic factors. The operating manager needs to make proper concern regarding these three pillars including the work safety of the workers, community welfare, economic and environment sustainability (Mahadevan, 2015). This is important for the manager to implement best practices into operations so that the goals can be achieved. There is a necessity to make an initiative through corrective measure by considering all the three factors into practice. Ethical Conduct Ethics play an important role in managing the organization. It is meant to ensure that the production function and activities are not damaging the customer and the society. It is important for the business to be ethical in conducting all the business practice unethical business practice followed by the business organization can damage the organization. The recently noted fraud in Wells Fargo is an example of unethical behavior. This kind of operation has a potential to damage the organization for a long run (What are the 5 Current Challenges of Operations Management? 2016). Effective Communication It is important for an organization to develop effective communication strategies at each level. The operation manager faces challenges in managing the communication in an effective way. Effective and efficient communication is one of the integral parts in an organization that is important for developing morale in order to initiate further. Operation manager need to think about different process to strengthen the overall process of communication. There is a necessity to develop the skills so that the end results can be attained in a better way. Development of the effective communication strategies will allow business organization will allow in gaining effective market position. Designing the System One of the most critical parts in operational management is designing the system. Product development includes determining the characteristics and features. This begins with the assessment of customer needs and grows into a detailed product. The information system bused need to be controlled throughout the process. The manufacturing decision related to the process is the integral part of an organization. The structural decisions need to be taken by the operations manager that has a great impact on the operations success. Product designing is a critical part that determines the characteristics of a product. It helps in determining products cost and quality. They are the important factors that help customers in making purchase decision (Operations Manaagement, 2017). The scale economy or business components that are involved in the process makes the organization workforce more effective. There is a necessity to determine whether the demand for a product is large enough to justify the mass production or if there is sufficient demand in consumer group. If the demand for a product is so small or seasonal it cannot support production facility. Responsibilities of Operation Manager Operation mange is the one who has a duty to look after all the operations. He has to evaluate all the operations based on the input from the overall objective of the organization. No process can be done without an effective business plan. There are two set of responsibilities in the hands of the operational manager. Firstly he has to make sure that the process and operations are been used efficiently and are performed at a commendable level. Secondly he has to see that the end of this process should create a path for all the activities. In case if any of the internal operation fails it is has duty to find out an effective plan to attain effective plan. Every operation manager has to make decisions related to different business operations. Hence it is important for his part to follow the changing trends in the organization. Every operation manger has certain ser of budget that he has to follow in order to gain objectives (Walters Rainbird, 2007). Conclusion The belief of the people rests with the strategic planning. The role of the operation manager should not be neglected in the competitive business environment. As the business environment is getting more challenging it is important for an individual to take effective measures t gain efficiencies. The report provides an insight into the key challenging factors and importance of Operation management in an organization. . The overall process and the use of resources are important for a business organization in creating value. References Cachon, G., Terwiesch, C. (2009).Matching supply with demand(Vol. 2). Singapore: McGraw-Hill. Heizer, R., Barry, R. (2013).Operation Management, Sustainability and Supply Chain management(Vol. 11). Pearson, UK. Hill, A., Hill, T. (2012).Operations management. Palgrave Macmillan. Krajewski, L. J., Ritzman, L. P., Malhotra, M. K. (2013).Operations management: Processes and supply chains(Vol. 1). New York: Pearson. Mahadevan, B. (2015).Operations management: Theory and practice. Pearson Education India. Operations Manaagement,(2017).Online. Retrieved from: https://www.inc.com/encyclopedia/operations-management.html (Accessed on: 24 May 2017) Reid, R. D., Sanders, N. R. (2010).Operations management: an integrated approach. Hoboken, NJ: Wiley. Russell, R. S., Taylor-Iii, B. W. (2008).Operations management along the supply chain. John Wiley Sons. Slack, N. (2015).Operations strategy. John Wiley Sons, Ltd. Sousa, R., Voss, C. A. (2008). Contingency research in operations management practices.Journal of Operations Management,26(6), 697-713. Walters, D., Rainbird, M. (2007).Strategic operations management: A value chain approach. Basingstoke: Palgrave Macmillan. What are the 5 Current Challenges of Operations Management?.(2016). Online. Retrieved from: https://online.kettering.edu/news/2016/10/18/what-are-5-current-challenges-operations-management (Accessed on: 24 May 2017)