Question One - Prime Bank of Massachusetts
Part 1
The operations function is important in implementing the strategy of an organisation because the business strategy only defines the long term plans for the company, whereas the operations function focuses on specific competitive priorities in order to meet the organisations long term plan. Prime Bank of Massachusetts had decided on a long term plan for the bank focusing on customer services and they needed the operations function to implement this long term plan through planning & control systems, workers and quality. Problems such as not having enough phone lines for the 24 hours customer service could cause customers to become irritated if they cannot get through on the phone and
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Part 3
If the banks strategy was cost cutting instead of supporting customer service the banks whole strategy would be very different. The bank would try to cut cost everywhere such as the tellers in the drive through lanes may be replaced with automatic machines. Customers would be encouraged to use banking on line as again the bank could reduce the number of workers which would cut the staffing costs. When competing on cost organisations my invest in automation to reduce unit costs, use lower skill labour and limit product range and offer little customisation. (Class Notes – Chapter 2, Operations Management)
Question Two
Part 1
Total Costs
D=15600
Q=1300
S=40
H=13.75
= = =
Total annual costs of the present ordering policy for part no 650810/ss/R9/0 is €9417.50
Part 2 Economic Order Quantity (EOQ)
EOQ = D=15600
S=40
H=13.75
=
=
=
= 301.27 EOQ = 300
Part 3
Total Costs using EOQ
D=15600
Operations function is vital to overall business performance as it is where a number of process come together to make the products and service to satisfy customer needs. However, operation function needs the finance function to manage the flow of
Operational strategies are the core functions of an organization because these operations intensify to produce something innovative and worthy. Organizational operations are associated with the performance and work quality of an organization because these operations are practical demonstration of a project. Companies mostly use these operations to run their functions effectively in order to have a positive result.
In reference to this assignment, I selected the first topic which is; Use the 5 objectives of operations management (quality, speed, dependability, flexibility, & cost) to describe the operations strategies, how they are implemented & how they support the organization’s competitive or effectiveness priorities. Indicate the
• explain operations as an organizational functional area; i.e. to present a list of the areas covered by the operations management function, the problems and decisions faced in these areas and the methods and models for approaching these problems;
Consider a firm with a daily demand of 100 units, a production rate per day of 500 units, a setup cost of $200, and an annual holding cost per unit of $10. Suppose that the firm operates 300 days per year. How many units of inventory must their storage area be able to hold?
Gioe Melaney is the general director of Southern Toro – a subsidiary company included in the distribution system of Toron Coporation in Galveston, Taxas.
Operations processes refers to the acquisition of inputs which are transformed in a business through the addition of value into outputs of goods and services. Businesses use operational processes involving inputs and transformation processes to increase efficiency and output. The operations management focuses on carefully and managing processes to produce and distribute products and services based on the nature of the business. To achieve objectives in a business, the quality of products are monitored regularly using customer services and warranties. Both Qantas and McDonalds, utilise operation process in order to gain maximum efficiency and productivity.
Operations management is essential for the survival and success of any organization. According to Heizer & Render (2011), operations management (OM) is the set of activities that creates value in the form of goods and services by transforming inputs into outputs. Operations managers today contend with competition, globalization, inflation, consumer demand, and consistent change in technology. Managers must focus on the efficiency and effectiveness of processes such as cost, dependability, distribution, flexibility, and speed. The intent of this paper is to discuss the processes and operations management of the Kroger Company.
Operations management is defined as the design, execution, and control of operations that convert resources into desired goods and services, while implementing an organizations business strategy (Business Dictionary, 2015). Office Depot Inc. is one such organization that truly understands that solid operations is the foundation to the success they have had in recent years. In this paper, I will give the history and background of Office Depot Inc. and explain why they have been able to keep such a competitive advantage in the consumer and small business supply industry. Additionally, I will
We begin by talking about JIT and give an introduction about the concept so that all may come to terms with the basics of the same. Next we move on to the elements involved in JIT and briefly describe them one by one. Next we begin talking about the goals, benefits, and limitations of the same, giving way to the philosophy and techniques of JIT. We continue our report with the implementation steps and examples of JIT in real world scenario.
Operations and process management can be defined as the business functions that work together to manage the creation of organisational goods and services, and involves planning, coordination, organisation and control of all resources including material, technology and people to produce an organisation’s goods and services (Slacks et al 2012, pp. 4-5).
As I entered the remaining classes in my concentration, Operations Management, I realized how each particular class subject had all come together, and how each was interrelated. Each class, each subject became more important to me as I realized their importance in the role of an operations manager.
Stage 1, internally neutral which is the very poorest level of contribution by the operations function, In a Stage 1 organization the operation is considered as a ‘necessary evil’. The other functions, if they have anything to say at all about operations, regard it as holding them back from competing effectively. The operations function, they would say, is inward looking and at best reactive. It certainly has very little positive to contribute towards competitive success. It is unlikely even to have developed its resources so as to be appropriate for the company’s competitive position. The best that the function can hope for is to be ignored. At least when operations are being ignored it is not holding the company back in any way. Certainly the rest of the organization would not look to operations as the source of any originality, flair or competitive drive. In effect the operations function is aspiring only to reach the minimum acceptable standards implied by the rest of the organization. It is trying to be ‘internally neutral’, a position it attempts to achieve not by anything positive but by avoiding the bigger mistakes. Certainly even when good organizations are let down by their operations function the resulting publicity can be damaging.
Operations play a major role when determining the best approach to developing and implementing a customer-friendly strategy. The top companies focus on providing high-quality service, whether delivery or pick up.
3.1 For each hotel, what is the role of technology and the role of operations