OPERATIONS MANAGEMENT ANALYSIS
Operationmanagement is a technique that AMC can utilize to increase thequality of the products and services. Modern consumers are informedabout the value of products or services. Therefore, any conditionthat may alter the quality of the outputs affects the performance ofany organization. This paper discusses three techniques AMC canemploy to address the threats to its productivity and sustainability.They include data-driven decision-making, linear programming andsupply chain management. Data-driven decision making involves the useof evidence for developing appropriate interventions to improve theefficiency of operations. Linear programming is the use of simulationalgorithms that enables the development of interventions undercertainty. Supply chain management is the approach that alignsvarious operations with the demands of consumers. It’s acomprehensive and continuous process of improving operations. Eachtechnique will cost AMC to implement and maintain. When appliedappropriately, the company will benefit from the implementation ofeach of the programs. However, their effects on the efficiency,productivity, and sustainability of AMC vary.
Mostof the activities of an organization are aimed at transforming inputsinto outputs and achieving its strategic goals. The approach toachieving this process is operations management. Brown, Bessant, &Lamming (2013) describe operations management as the company-wide andinter-firm activities involved in the development, execution, andmaintenance of efficient production processes. Analysis of operationsmanagement is a technique that an organization employs to assess itsproduction processes to identify and solve specific problems. It canalso be used to develop improvements in various productionactivities. There are a number of methods used to analyze the processof value creation in an organization and propose appropriateimprovements. This paper focuses on how ACME Mexico City (AMC) canemploy data-driven decision-making, linear programming, and supplychain management to improve its operations.
Theprocess of decision making gives a company the opportunity to exploreits operations and make appropriate choices for improving itsefficiency. This process can be successful if only it has thenecessary information. Preuss P. (2013) considers data-drivendecision-making approach as an invaluable technique that AMC can useto come up with appropriate strategies for operating in the foreigncountry, Mexico. This technique utilizes the data about the internaland external environment of the company. Since AMC is operating in adifferent country, it will encounter different or even harshenvironmental factors that may reduce its productivity. Therefore,the company needs to develop insights on these factors.
Indata-driven decision-making strategy, AMC will collect data about itsexternal and internal environments. It will then analyze the data toidentify potential threats. AMC will determine and quantify theimpacts they may have on its operations. It is at this point that thecompany proposes and evaluates various ways of reducing the threats.The appropriate choice is made based on factors such as feasibility,effectiveness, and efficacy. Costs are incurred in the purchase andinstallation of computer software and hardware, hiring oftechnicians, and maintenance fee. This technique may be adisadvantage to AMC when it does not have enough information aboutits new environment (Preuss P. 2013). Another limitation is that theultimate choice is limited to the knowledge of decision makers. Anexample of successful application of data-driven decision making isGoogle Inc.
Linearprogramming is the approach that AMC can use to make decisions undercertainty. It requires the knowledge and quantification of all theavailable options, objectives, and constraints. Linear programming isa technique for analyzing the planning and operations of the companyusing a constructed model of a problem having variables and a linearexpression for the variables. The variables are organization’schoices and their constraints. In order to benefit from thistechnique, AMC must identify specific problems (existing andpotential) and their interventions. The company will then brainstormon the constraints for these choices. The constraints that AMC haveinclude resources and other factors that affect the productionprocess. A mathematical function is developed to show therelationship between the alternatives and their respectiveconstraints. The appropriate option is the one which results insustainability and maximum outcomes when the constraints aremanipulated (Anderson et al. 2015).
Thistechnique aims at profit maximization using the scarce resources ofAMC. The company can use it to address the issue of work schedule forthe customer service employees. The company will have to train theteam which will conduct the analysis. ACM will incur cost in thepurchase of computer software and hardware that facilitates the useof the algorithm. The limitations of linear programming are theassumptions: there is a linear relationship between the constraintsand the relationship is continuous and non-negative (Knode C.S.,2011).
Supply chain management
Supplychain management is another technique that AMC can utilize to improvethe efficiency of the whole process of converting its resources intovalue products and services. It integrates the activities such aspurchasing, logistics, customer management, employee management,inventory management, leadership and management into a unifiedsystem. In order for the company to benefit from this technique, itmust understand the specific needs of its customers. Since thismethod focuses on all processes involved in value creation, it offersAMC the opportunity to assess the bottlenecks that can interfere withall activities in the supply chain (Sherman, R. J. 2013). Afteridentifying the potential threats, the company will then develop anappropriate approach to achieving customer satisfaction.
Supplychain management offers the company the chance to align all itsoperations to meet the dynamic customer demands. Supply chainmanagement is a continuous process which enables AMC to adjust tothat changing market conditions (Toyota Motor Corporation, 2015). Itis a way that AMC can use to achieve sustainable growth andproductivity. A company seeking to adopt supply chain management mustprepare itself with enough money, human resources and necessaryequipment to facilitate its implementation. There is the need forregular training of the employees to equip them with new skills andknowledge. This technique is used in conjunction with otherapproaches to operations management. Wal-Mart successfullyimplemented supply chain management approach to operation management.
Future of operation management
Due to globalization, the exposure of organizations to the globalenvironment increases. The exposure indicates an increase in theirconsumer base. Companies will have clients from various cultures.Therefore, they must design business operations to meet the varyingdemands. As a result, supply chain management, execution and controlof operations, customer management, and resource planning will begiven more attention. In the future, organizations will becustomer-oriented. Therefore, there will be demand for techniquesthat aligns operations with demands of consumers (Gunasekaran &Ngai, 2012).
AMCmust improve on its operations management in order to meet thecustomer demands and its strategic objectives. The analysis of itsinternal and external environments is necessary to identify theproblems or areas that need improvement. The three techniques havedifferent approaches to addressing the concerns of the company. Eachof the approaches has its advantages and disadvantages. Though supplychain management is more expensive that the other two techniques, itis the most appropriate since it ensures improved efficiency in alloperations of the company. While using supply chain management, AMCcan employ data-driven decision making and linear programming toaddress various issues. Since organizations desire to attainsustainability in the production activities, they will invest inresearch and development to innovate a holistic approach toincreasing their production efficiency and quality of products andservices. The future of operations management will involve theintegration of various techniques to develop a comprehensiveapproach.
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Brown S., Bessant J. R. & Lamming R. (2013), StrategicOperations Management, Routledge
Gunasekaran, A., & Ngai, E. W. (2012). The future of operationsmanagement: an outlook and analysis. International Journal ofProduction Economics, 135(2), 687-701.
Knode, C.S. (2011), Decision tree video 1 (setting up theproblem), Retrieved fromhttp://vimeo.com/duffer44/decision-trees-part-1on 4 November 2016
Preuss P. (2013), Data-Driven Decision Making and DynamicPlanning, Routledge
Sherman, R. J. (2013). Supply chain transformation: Practicalroadmap to best practice results. Hoboken, N.J: John Wiley &Sons.
Toyota Motor Corporation. (2015). The Toyota production system -terms. Retrieved from http://www.toyotageorgetown.com/terms.aspon 4 November 2016