Operational Management Physical Goods

Question: Discuss about theOperational Managementfor Physical Goods. Answer: Introduction Operation management is concerned with the manufacturing and change in state of physical goods. It is related with an effective and efficient management of any operation which include any goods or service. Operation is a part of the process which is concerned with transformation of various resources in order to retain results. Management is the procedures through which various process in an organization are combined in order to produce value system. These are the set of inter-related management activities concerned with manufacturing of certain products. The application of the same procedure when extended to service management is called as operation management. In modern days it is seen as a completely different method to organize, lead and control the organizational operations. It is considered to be one of the most important processes to handle the situation effectively. In case if the company fails to manage the issue carefully it might lead to disaster in company (Birdi, et al. 2 008). Previously people use to believe that operation management is important for a manufacturing company but the fact that the manufacturing industry has to take proper care of various processes taking place from obtaining raw material till the goods are sold and in many cases after sale services are included in the operational management process. In service industry there are various processes involved from customer needs to getting a feedback from them. Both the process need to be coordinated simultaneously in order to procure benefits from synchronizing processes taking place in the organization (Stevenson and Sum, 2002). It is the responsibility of the operational management process to meet the contingencies occurring in the organization. Customers demand need to be met at all the time in order to procure effective results. Marketing team in each and every organization is concerned with dealing in operations management. Marketing thereby collects information from the customers and pro vide the similar information which forms an essential part of strategic management. Operation management involves same type of management task irrespective of the industry. The process includes Planning, Staffing, Controlling, Directing, Motivating and Organizing. These operations are essential components in a management process that play a major role in managing the organization. IKEA is a company using operational management at every level. IKEA is a Swedish company which sells ready to made furniture and home appliances. It is one of the best companies who are following an efficient operational management process. The production and manufacturing section of the organization aims for reducing the wastage and to increase the overall productivity. Their aim is to reduce the production cost and to increase the overall productivity by utilizing warehouses efficiently. The store has a responsibility to take care of sales and marketing involved in the process. It indicates that IKEA is efficiently utilizing set of operations irrespective of its field of business. Effect ive business is the one which focus on operation management irrespective of their field of business (Lambin, Chumpitaz and Schuiling, 2007). The primary objective of operational management is customer services and resource utilization. The main objective of a business is to keep their customers happy irrespective of the strategy, marketing and operational management. Operation management makes sure that all the customers are highly satisfied and their demands are easily met. Secondly it is necessary to utilize the resources efficiently because it directly impacts the cost of production. This will reduce the overall profit margin and company will lose a significant market share. It is necessary to meet both the objectives in order to attain high level of sustainability. IKEA makes sure that the quality is managed at all the times without damaging its image. This has helped in managing operations effectively and efficiently (Jones and Robinson, 2012). Strategic planning is a process undertaken by the managers to accomplish the mission of the organization while considering the environmental conditions. So it can be considered well in advance that the operational management process need to be undertaken by the manager who understand the process, linkages, who can work on the trade-offs and can teach other about the process. The operational manager makes use of the value chain analysis while going through the overall process. All the operations inside the value chain analysis are the process of the organization. All these process are managed by the manager and by attaining efficiency through effectual process (Slack, 2015). The biggest challenge IKEA faced is due to management of resources. They are the biggest asset for an organization to achieve high reputation in society. The company not only requires resources but a proper technology to implement the resources at right place. The biggest problem with IKEA is to manage the resources (Wheelen and Hunger, 2011). The process at manufacturing unit is designed in a way it give equal priority to the process taking place in the organization and at store it focus on the needs of the individual customers. The operational process is similar to each other and might affect the productivity on a long run. As the business environment is growing it has become important understanding the importance of operation managers and to turn the process in a proper manner in order to gain efficiency. Resource management is one of the important tasks which require managing all the requisite activities within the industry in order to attain sustainability (Heizer, 2004). These activities are important for an organization to attain growth within stipulated time-period. The operation management can be managed at three levels which are the level of the supply network, the level of the operations and the level of process. The whole process is managed at an individual level by the operational management team (Jones and Robinson, 2012). The importance of operational management has increased in recent times and has become an integral part in every organization in order to manage the supply chain. This process is necessary in almost every time of organization in order to attain sustainable results. References Birdi, K., Clegg, C., Patterson, M., Robinson, A., Stride, C.B., Wall, T.D. and Wood, S.J., 2008. The impact of human resource and operational management practices on company productivity: A longitudinal study. Personnel Psychology, 61(3), pp.467-501. Collier,D. and Evans,J.2009. Operations Management. Cengage Learning Heizer, J., 2004. Operations Management. Pearson Education India. Jones,P. and Robinson,P., 2012. Operations Management. OUP Oxford. Lambin, J.J., Chumpitaz, R. and Schuiling, I., 2007. Market-driven management: strategic and operational marketing. Palgrave Macmillan. Slack, N., 2015. Operations strategy. John Wiley Sons, Ltd. Stevenson, W.J. and Sum, C.C., 2002. Operations management (Vol. 8). New York, NY: McGraw-Hill/Irwin. Wheelen, T.L. and Hunger, J.D., 2011. Concepts in strategic management and business policy. Pearson Education India.