Topic: In what extent the operation managers use Capacity Planning and control strategies to enhance organization operations performance.
Capacity is value added activity over a period of time at maximum level that an operation/process achieved under normal conditions. It is fundamental responsibilities of Operations management to satisfy the current and future demand. Operations management should create balance between capacity and demand. An appropriate balance between capacity and demand can satisfied the customers and eventually lead to organization profits. Capacity planning is the process of determining the production capacity to meet changing demands for its products. Capacity planning and control is the task of setting up the capacity of operations so that it responds to demand placed upon it. This means that taking a decision how the operations should react to demand fluctuations.
Capacity planning and control is major responsibility of operation managers. In this some other functional managers also involved in it. There are three reason for this. First capacity decisions have a companywide impacts. Secondly, all the other functions provide vital inputs to the process. The third and more important is each business function will have the capacity plan and control for its own micro operations
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They will also have some idea of their ability to meet this demand. Before any further decisions are taken, they must have quantitative data on both capacity and demand. The sequence of capacity planning and control decisions which need to be taken by operations managers is first of all measure the aggregate demand and capacity levels for the planning period. Secondly identify the alternative capacity plans which are adopted in response to the demand fluctuations. The third and final step is to choose the most appropriate capacity plan for their
This category is not found in all businesses as it is not always essential. Large businesses tend to have an entire division for operations and it habitually has its own hierarchy to make sure that operations are processed appropriately and in a formal order. Smaller businesses tend to have a senior manager or a small management team who are in control of the business’ operations. Personnel - this category is the indispensable area involved in almost every business. Personnel are responsible for ‘carrying’ the business as they are required for tasks such as directly selling products to customers.
• The operations sector manages and supports the business. It includes admissions, rides and attractions and medical issues. However, it can often be seen as the “back office” because it takes care of the many background jobs as well and doesn’t come into contact with the customers, just works behind the scenes in order to help the business remain stable and run efficiently. The Operations sector also has to work with other sectors by using sales forecasts produced by the marketing sector to help plan their production
It is based on management characteristics which can include things such as structure, technology and objectives. This is all among others. Chapter three discusses command and their function with everything. There are two parts within the
Operations management is the practice of highest level efficiency within an organization. How was operations management practiced? It is broken down within five steps. The first step of operations management is. Finances, knowing what your financial cap for that training year or for a certain project is definitely the most important part.
The Capsim Production module is responsible for the coordination and manufacturing plans of the business, ensuring that all products are made efficiently and on time. The Production department is responsible for the planning and management of each product’s production line. Automation levels are set and adjusted within the department to ensure efficient utilization of the plant’s capacity. The production department considers the following year’s sales forecasts and inventory left unsold to determine the production needed for the upcoming year. Capacity is an extremely vital component of the production department.
Month 1 2 3 4 5 6 Forecasted Demand 600 750 1000 850 750 700 Month 1-6 if added equals to 4,650. Currently there is 50 units in inventory, ending inventory is 25 with a current worker of 20. The hiring and lay off cost is $100 each and an inventory cost of storage per unit is $5. So 4650+25-50= 4625 units. With that being said we use the formula in which total units/number of periods give us 4625/6= 770.8 units.
Capacity planning This is the process of knowing the production capacity an organization needs to meet the changing demands for the products. It helps to determine the quantity of the product needed by a firm to meet the demands of its customers. The capacity planning elements for Walmart are; facility, product and service, and human resource.
One resource planning technique is resource leveling. It aims at smoothing the stock of resources on hand, reducing both excess inventories and shortages. The required data are: The demands for various resources, forecast by time period into the future as far as is reasonable, as well as the resources ' configurations required in those demands, and the supply of the resources, again forecast by time period into the future as far as is reasonable.
Direct labor which is a human resource will be recalculated on the basis of sales of 3 million bikes. It may happen to produce 1 million products, they require 50000 employees but to produce 3 million products they require 200000 employees and to be on safer size, 10% extra labor will be recruited which will give a total of 220000 employees. Therefore it is clearly understood that the company can prepare their Labor Requirement budget directly from the sales budget. The same concept will apply to overhead and capital expenditures because overheads are directly proportional to the production and if the sales are high, product will automatically are high. Similarly quantity requirement will lead to the requirement of machines.
Marketing Management Project PROJECT OUTLINE: Choose one company which has a turnaround in the past and one company which failed in the past. Discuss each company’s marketing strategy and reasons for their success or failure. Marketing Strategy Failure: Gap Inc. How Gap turned into Crap! What went wrong?
Strategic Quality and Systems Management Report Operations Management Operations management is now the most essential part in maintaining organizational systems. Actually operations management means all the necessary activities of an organization like finance, human resource management, research, marketing etc (Elnathan, 1995). Whether it is planning, leading, organizing or controlling, they all are part of an organization’s operations management. Because of the speedy change of the business environment, internal and external factors like market position, market value, possibility etc. (Stanton, 2001).
The supervision model presented by Davys and Beddoes (2010) reflects on the development and management and uses triangle for each point to have a supervisor role, this includes: • Handling service delivery • Organisation procedures, protocols and policies • Quantity and quality of work priorities and
The purpose of Operations management within an organization is to control the production process and business operations as efficient as possible to achieving overall organizational goal (investopedia.com, 2017). Therefore operation management creates policies, processes and procedures and also use various methods and techniques to maximize profits thus achieving organizational goal. Approaches or Techniques of operation management To improve the operational performance, operation management use various techniques to improve the operational performance. Some of these approaches are: Six Sigma Lean production Queuing theory TQM In this section below some of these techniques or theory has been explained: Six Sigma: Six sigma an effective and significant process improvement theory
Performance Management Performance management according to --- is a function that that embraces activities such as articulated goal setting, uninterrupted progress reassessment, regular communication and feedback, as well as coaching for better performance. Likewise, it involves execution of employee development plans and rewarding accomplishments. In other words, performance management focuses on improving employee performance along with effort via a process that supports employees to get personal and professional fulfilment by a feel of purposeful contribution. In organisations, management is responsible for meeting organisational objectives through the involvement of others; through evaluating the performance of systems and human resources.
TASK 1.1 Importance of operation management Operations management (OM) is the business function responsible for managing the process of creation of goods and services. It involves planning, organizing, coordinating, and controlling all the resources needed to produce a company’s goods and services. Because operations management is a management function, it involves managing people, equipment, technology, information, and all the other resources needed in the production of goods and services. Operations management is the central core function of every company. This is true regardless of the size of the company, the industry it is in, whether it is manufacturing or service, or is for-profit or not-for-profit.