Operations management refers to the process of designing and controlling the production and business operations of the company to produce goods and services effectively and efficiently. To maintain business operations, it must be ensured that all the resources of an organization are effectively used. The process of operations management involves planning, organizing and supervising all the activities and operations performed for production of the company and its services provisions.
Operational strategy refers to the planning of allocation of resources of an organization in such a way that it supports the infrastructure and production process of the company. the operational strategy of the company must be in accordance with and support the overall strategy of the whole organization. the major purpose of developing the operational strategy is to derive maximum returns and higher levels of production while minimizing the cost. Five core strategies for operational management are as follows:
• Corporate strategy and cross-functional interactions
• Customer-driven strategies
• Developing core competencies
• Development of competitive priorities
• Product and service development
Project management implementation: Implementation refers to the actual performance of activities or operations according to the plans formulated. It requires the coordination of various activities, teams, budget and communication of the company to get desired results.
The advantages of the implementation of the project are as follows:
• Implementation of the project shows the conversion of plans in actual outputs.
• The implementation of plans will provide goods and services to end customers of the products to consume it.
• The success of the production phase of the company will encourage other producers and companies to plan better products and services in the market. it will develop new markets,
The disadvantages of project implementation are as follows:
• Implement the production phase of the project, an organization has to acquire various resources for which a company uses corruption and waste precious resources of the management.
• The poor planning of the project management will hinder the actual performance and put constraints for the management.
Forecasting of demand and resources: Demand forecasting is the process quantitatively analyze the future requirements of goods and services in the market. so, that a company can manufacture the products accordingly without wasting the resources of the company. the demand forecasting will provide the following benefits to the company:
• To plan and schedule the production and acquisition of resources or inputs required.
• To create the provisions for finances for all the operations.
• To formulate and decide the pricing strategy to be followed
• To plan the marketing and advertising strategies and practices of the company.
Location strategy: Location of the project site of the company affects the performance of the company. The suitable location will ensure the availability of all the resources required by the company such as customers, workers, transportation facilities, material, etc. Thus, the location of the site contributes to success and profit generation of the company. while deciding the location strategy, a firm has to involve the following factors:
• Trade zone
• Political risk
• Governmental regulation
• Environmental regulation
Inventory management refers to the process of planning and controlling the flow of goods from the warehouse of the manufacturer to the point of sale. The proper record is maintained with timely updates of new and returned products accepted or entered the warehouse and the products sold that is leaving the warehouse. Inventory management techniques are as follows:
• Stock Review
• Just- in- time methodology
• ABC analysis
• Set par levels
• Stock valuation techniques - First- In and First Out, Last- In and First- out and Average costing method
• Fast, slow and non- moving method
• VED (Vital, Essential and Desirable) analysis
• Economic Order Quantity