Chris Co is a company engaged in the production of software under the Vie and Via brands.
Question:
Every product you buy has been created and distributed using a series of processes that were designed to transform resources, such as raw materials, machinery, and labor, into goods or services.Operations management is a specialized area of management that focuses on designing, supervising, and continually improving these processes. It includes purchasing parts, overseeing suppliers, scheduling production, inventory management, and quality control, among other duties. It is the operation manager's job to make sure everything runs smoothly so that when a customer orders a product, there are no delays or quality issues. At the same time, the operation manager needs to keep the costs of production down and increase productivity. Operations management applies to service businesses, too. The goal of any service is to ensure that the customer has a great experience. And by running their operations smoothly, a company can provide it. In the service sector, too, companies are looking for ways to increase efficiency while keeping costs low. Originally, goods were mass produced without any input from the customer, and some still are, like gasoline. But now the market demands more customized goods, and companies are responding. For example, Ford Motor Company encourages buyers to pick out their colors and options online instead of settling for whatever their local dealer has in the lot. Customization costs manufacturers more money because they have to change over machines to make different versions of products. The expansion to a global economy has increased competition for American manufacturers who have had to figure out new ways to customize their outputs and increase their productivity while reducing costs. Computer-aided design, or CAD, uses software to create very accurate drawings of a product in both 2D and 3D. When you add computer-aided manufacturing software to CAD, it becomes much easier to customize small orders because a manufacturer can program their computer to make small changes, and the computer quickly incorporates the changes into production process. Some companies have taken that step further and simply designed machines that can do multiple tasks so they can produce a variety of products at any time. This is called flexible manufacturing. Other companies use mass customization, which means that most of the product is the same but part of it is customizable. M&Ms lets customers create candy with special messages. The actual candy is the same taste, size, and shape for everyone. But the colors and print on the candies can be specified by customers. It's robotics that really made manufacturing more efficient, and it continues to do so. Robots play a part in almost every process in production, from welding to sorting to filling boxes. Unlike people, robots can work 24 hours a day, 7 days a week, and they don't make mistakes.Operations management planning is another key factor in keeping production efficient and cost effective. One of the most important decisions a company has to make is where to locate their facility. Companies look at several factors when choosing a location, including access to inexpensive resources, such as water and electricity, proximity to such transportation hubs as airports, train lines, or ports, availability of either low cost or specially skilled labor, and quality of life for workers and managers. They need to build a facility where their employees will want to live, like this Subaru plant, situated on a nature reserve. Once the location of the facility is determined, operations managers must decide how it will be laid out. They want to design the most efficient layout possible so workers don't waste time walking across the plant to get a part, for example. Most products can be finished on an assembly line, but sometimes companies must use a fixed-position layout that brings workers to the product they are building, such as an airplane. In the service industry, efficient layout means serving the customer. Companies want the customers to be able to find and buy things. Layout should be intuitive, such as putting the front desk of a hotel near the door or building a website that is easy to navigate. Another major decision the operations manager has to make is how to control inventory of raw materials. Buying materials and letting them sit is expensive because space is needed to store inventory. Also, the raw materials need to be paid for, so it's best if they are purchased right before they are needed for the production. Many companies use "just in time" inventory control to make sure the right materials are at the right place and time without storing a huge inventory of parts on site. To do this, a company needs accurate enterprise resource planning, or ERP, software. ERP is an integrated software system that is triggered when a sale is made either to a sales rep or through the Internet. When the sale hits the system, it automatically routes the order to scheduling, then production, then shipping, and, finally, billing. Usually suppliers are hooked into their client's ERP systems so they can ship parts just in time to produce that order. Facility planning, inventory control, and ERP are all designed to reduce costs and increase efficiency, but quality control is the process that counts the most. Companies must put out quality goods or they will fail, so every producer has quality control testing. Traditionally, QC happened after production, and if the errors were found, the product was scrapped for parts or thrown away. Now companies are placing QC tests throughout the production process so errors can be fixed early without costly waste. Quality is such an important measure in operations management that there are prestigious national awards and international certifications that companies strive to achieve.Operations management is complicated, but it's a key to stay competitive in the marketplace. Companies who keep costs low, prioritize quality control, and maintain as much flexibility as possible will thrive. To do that, they need to take advantage of innovation and technology and plan smartly so they can respond quickly to customers' changing demands.
What is the focus of operations management?
Multiple Choice
designing, supervising, and improving the transformation process while keeping costs down
producing goods efficiently
producing services efficiently
quality control
customization
What are some of the benefits of technological advances such as CAD-CAM? Select all that apply.
Check All That Apply
It allows products to be designed and then input into an automated manufacturing system that makes products.
The product can be drawn in three dimensions and then rotated on the computer screen, so that the designer can see all sides.
It helps architects design buildings and workspaces and helps engineers design cars, planes, electronic devices, roadways, bridges, and subdivisions.
It reduces the need to rely on outsourcing.
It encourages creativity in the production process.
Expert Answer:
1 The focus of operations management is designing supervising and improving the transformation process while keeping costs down Explanation The focus ... View the full answer
