The Advantages Of Operations Management By Jason LeDay
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Operations management focuses on ensuring a smooth production process for manufacturing firms or identifying factors to increase customer loyalty and sales for service firms. It allows companies to increase profitability through questioning processes and increasing sales. Operations management gives firms a competitive advantage by helping them understand internal factors like policies and intellectual capital, as well as external factors. For manufacturers, it allows improving production processes and inventory management to prevent losses. Following operations management principles helps companies comply with regulations. Analyzing and improving processes increases a firm's efficiency and competitiveness in today's business environment.
The Advantages Of Operations Management By Jason LeDay
- 2. Introduction • Operations management focuses on the tools and techniques a manufacturing firm uses to ensure a smooth, effective production process. If the company provides services, operations administration indicates to top leadership the factors that can prop up customer loyalty and sales.
- 3. Benefits of Operation Management • Profitability Management • Competitive Advantage • Manufacturing Edge • Regulatory Compliance
- 4. Profitability Management • Sound operations management causes corporate leadership to challenge conventional wisdom or employees’ sense of what's operationally correct. Simply put, senior executives rely on this activity to question existing processes and ask personnel to come up with new ideas to do business and increase sales. In fact, companies with experienced, competent operations managers are generally adept at monitoring their revenues and expenses.
- 5. Competitive Advantage • Businesses adequately manage their operations to get a handle on key internal and external factors. Internal factors include operating policies, intellectual capital and the average attrition rate. This reflects the number of employees leaving as a result of resignations, retirements and deaths. Forced workforce reductions, such as terminations, do not count as attrition-rate components. Intellectual capital represents various abilities, expertise and knowledge that a firm has gathered over time.
- 6. Manufacturing Edge • Operations management allows a manufacturing firm to change or improve the way it produces goods, as well as how it stores items such as raw materials, work- in process merchandise and completely finished products. This important benefit helps the manufacturer prevent a deterioration in debt affordability, which may happen if the firm incurs losses and cannot repay its existing liabilities.
- 7. • By studiously analyzing operating activities, corporate management waves goodbye to the days of hefty government fines and adverse regulatory decisions. Department heads and segment chiefs set adequate internal controls to make sure rank-and-file personnel perform tasks in accordance with the law.
- 8. Importance of Operations management • An important part of operations management is to analyze and eliminate those activities that do not add value, and re engineering the processes and jobs to achieve greater efficiency. In today's competitive business environment the role of operations management has become the central point of efforts to increase competitiveness by improving value added and efficiency.
- 11. • Jason LeDay is a successful businessman who provides the essential benefits of operation management through which you can increase the efficiency and productivity.