Name of Student Essay Example

  • Category:
    Marketing
  • Document type:
    Coursework
  • Level:
    Undergraduate
  • Page:
    3
  • Words:
    1646

OPERATIONS MANAGEMENT: FINANCIAL DIMENSIONS.

OPERATIONS MANAGEMENT: OPERATIONAL DIMENSIONS.

The article is about new software solution ‘Pacifica™’, produced by Quest Integrity Group to perform . This software is supposed to help operators manage cyclic fatigue caused by pipeline failures. Pacifica software is capable of performing pressure cycle fatigue analysis in every pipeline crack flaws. It also has a database to store pressure data that may be used for future analysis. The fatigue growth analysis is done using actual pressure data at the same time hydraulic modeling records true pressure locations at every crack in pipeline. The software is capable of lowering operator’s risk, provides detailed analysis, fewer excavations, and evaluates operational changes. Pacifica is capable of conducting efficient pipeline integrity analysis, detect remaining life assessment, and pressure cycling at flaw locations (Bettley, Mayle, & Tantoush, 2005). pressure cycle fatigue analysis

The article relates to operation management theory. The theory analyses business processes and develops mechanism to ensure that business processes are efficient; bring in greater returns at least cost inputs and quality products are delivered to users. The new software is capable of revealing all operators risks, this will act as early warning signs so that wastages can be reduced or minimized which can affect the organization profits motives. According to Bartol et al (1998:p.53) operation management field that ensures inputs are efficiently converted to outputs as well as customer requirements are fully met through efficient and effective means. It ensures that efficient and effective policies are adhered to in delivery of the services, and checking at every operation with regard to it cost and impact on sales, or revenue generation

The article gives a picture of how a company using innovative technology is capable of improving its operations by the use of technology, the discovery of Pacifica software for cracks analysis and detection in pipelines. This is reduce operators risk by giving early warning signs for prevention of risks associated with petroleum movement, that of pilferage and high losses normally associated with wastages (Bicheno, & Elliott, 2002).

Some of the main activities by firms practicing operation management principles are product creation, production development, and quality control measures. The software developed by Quest Integrity Group, the Pacifica has all those capabilities. The overall impact is operation efficiency and effectiveness of processes. Knowledge on how each processes works is an essential component of an operation management work. The main work of operation management is to conduct analysis and be able to evaluate and measure internal processes accurately. This software will conduct fatigue analysis, be able to alerts on operators risk aspects in a timely manner. Cracks on pipelines may perhaps cause leakage and a big loss to the company. The software has also database which records the analysis and it can be used for future analysis and testing purposes. For a company to make more profits, it is provident that every manager will make clear profit planning. Such plan will involve all revenues forecast as well as main expenditures heads of the enterprise (Robert, 2002).

One of operation checks the managers at case study in the article have resolved with the new software is to improve on ways of working at the company. Corrections of work related problems is an integral part of achieving total quality management issues in firms such as an alert systems that may boast delivery and assist in boasting re-scheduling wherever necessary. Aspects of quality management in organization are an operation work, which will ensure that poor quality products do not reach the customer by any way through the system. Strict standards has to be established of quality control and material managements which managers has to be costly review and monitor for quality targets to be achieved within the companies means. The improvements that the software can bring forth in the organization are among the key aspects of strategic objectives of the firm. Consumers’ preferences have and will remain to be products of consistent quality offered in the market at least price possible. The underlying rationale of consumers’ argument is optimizing their satisfaction at minimal cost factors. In order for that objectives to be achieved, corporation has be in constant watch on their operations, and check on ways of bringing or creating operation efficiency by either automating their processes or initiating system based early alerts of dangers that may inhibit the profit goals of the firm. Some of checks in organization operation would include developing an operation blueprint containing lists of all operations and their characteristic to be performed in an organization (Gomez-Mejia, & Balkin,. 2002)..

Some of industry practice for operation management in industries is a central of key strategies and decision making processes of the firms. Among the critical application of the subject matter is on production methodologies firms employ like just in time and workers empowerment techniques. Production options of firms either based on market model existing competitive market structures or monopolistic competitive market model. The applicability of operation management in different industry practices is far and wide. Total quality practices is at the heart of modern management, each company trying to set it quality standards and in desire to improve it processes for quality acknowledgement. The acknowledgements by ISO give the organization credibility as having met the required standards in it operation efficiency and its products being to some recognized quality standards. This is to open up the organization for broader trading in the international levels. Operation efficiency of firms normally advocates for lean production systems. The aspects in to be considered in lean production are enhancement in operation efficiency just in time, total preventive maintenance, total quality management, and human resource management.

Just in time refers to a manufacturing system whereby the materials produced by industries are delivered immediately before they are require an effort to ensure that inventory costs are minimized. The principle in practice will ensure that customers’ needs are met while balancing with the goals of avoiding stock outs as well as minimizing costs that normally accompany stocks distribution. In order to achieve such operation efficiency companies have resorted to automate their inventory operations. This program is met to conduct automatic inventory replenishment. This may able stores managers or procurement officers to be able to respond quickly to reduce stock levels. Just in time is also to ensure inventory costs are low as possible. Such savings can be used to improve the bottom lime or the profit motives of the firms and firms will ensure that they have reduced wastes (Gomez-Mejia, & Balkin,. 2002).

Another industry practice in the line of operation management is in total preventive maintenance. This approach ensures that routine maintenance practices rest with the workers to operate the machineries. The concept is, employees should own up the responsibilities of various machineries and equipments they use in their day to day operations. This principle ensures that each operator is fully keen on various procedures, and there is rare case of machine misuse for each operator will take full responsibility for what he or she uses. Ensuring that tools, equipment and various organization machinery are in good working order will minimize the firms maintenance cost of it equipment and therefore improves it profitability. It can also assist in improving machine run time which is very essential for continuity in production. Every production manager will have to balance between preventive and breakdown maintenance (Needham, Dransfield, Harris, & Coles, 1995).

The other area of operation management application in industry practice is the use of total quality management. The principle refers to an organization wide approach to instill a culture whereby the organization continuously improves the capability to deliver the best products as well as efficient services to the customers. Total quality management is based on the philosophy of doing business which is to satisfy the customer, the supplier and pursue to improve business processes. Attaining quality is in the hands of customers’ requirements, ability to meet and exceed customers’ requirements. To improve on operational processes requires one to continuous improve of work processes that require continuous analysis on all organization processes with an aim to improve and deliver products to end users which meet their specifications (Shim, & Siegel, 1999).

The final issue under lean production of firms is in human resources management. To improve on efficiency in human resources a firm has to analyze it hiring practices, selection practices, designing of job specifications. Staff remunerations and retirement policies together with mechanisms put in place to reward exceptional performances.

Inventory control processes is very key for proper management of an organization. the practice advocate for merchandise proper management and suppliers coordination. This will require operation controls like checking sales floor versus what is in store, frequency of inventory movement from non sales department to selling zones of the enterprise, what is supplier delivery time and what are the available trade offs.

In conclusion, application of operation management theory are many, the central aim is in optimization decisions of the firms. The profit motives together with the need to deliver better services and products to customer are pushing organization to continuously check and benchmark their processes to be able to meet customers’ requirements. Currently, all forms of organization whether knowingly or in ignorant have activities that fall under operation management practices. The goal is produce competitive products at least cost factors to be able to share the returns with the customers in terms of charging lower prices.

REFERENCES

Bettley, A. et al (2005) Operations Management in Strategic Approach, Sage Publications

Robert H. (2002) Strategic Operations Management: The New Competitive Advantage.


Bicheno, J., & Elliott, R., (2002). An Active Learning Approach: Blackwell Publishers Ltd

Gomez-Mejia, L.R. & Balkin, D.B. (2002). Management (8th ed.). New York: The McGraw-Hill Companies.
Lowson, R.H., (2002). The New Competitive Advantage, Routledge


Slack, N., (1999) Encyclopedic Dictionary of Operations Management, Blackwell Publishers Ltd
Shim, J. & Siegel, J. (1999) Operations Management, Barron Educational Series