Changes in Operations Management

Résumé du document

There have been many significant changes in Operations Management during the past few years, involving such aspects as quality, reduction in inventory and costs, improving delivery and lead times.

We will discuss these changes and the implications for Operations Management today.

Extraits

[...] Today there is a kind of movement” which is the just in time. The process is very simple and very economic for firms you only have to store products that you are sure you will buy. For example a company makes an order of 100 bikes, the productor will only store this products in order to make room and to win money, because if you have too many stock, you won't buy all the products and it will be a lost for the firm. [...]

[...] All these changes permits a big reduction of costs. Example of reduction of costs. the first year the bank has saved $ 5.6 million in equipment and has realised a substantial saving in labour cost."(4) - Bill Adams, FleetBoston “ProModel advanced simulation technology can be applied to any transaction- related financial services process to reduce cost, increase productivity, accelerate cycle time and improve customer service. Innovative market leaders including American Express, Chase Manhattan Bank, FleetBoston, Union Bank of California and Prudential Insurance, have already implemented ProModel financial service solutions.” This example of Promodel show the importance of costs reduction because if it exists firms who implement program to reduce costs, it implies that it is very important if this firm has success it is because it works and that firm want to reduce their costs. [...]

[...] And you have to buy it because your competitors have it and produce more efficiently that you and if you don't buy it, you will go to disaster because competitors will propose products at low cost and you wouldn't respond to the demand. So today the principal objective is to change with the environment and not to wait because if you wait you will lose your competitivity and it is the most important point in the firm because without it you can't propose to customers products at low costs but your competitors propose them so you will file for bankruptcy. The major changes in operations management in the last few years 1. [...]

[...] It concern the concepts, methodologies, techniques and technologies used by managers in the transformational process of using resources to provide the output of goods and services. So the question is what are the changes in the concepts, methodologies, techniques and technologies? 2. The changes and operations management today Changes is a complex process which is very important for firms today, it isn't as in the past where changes were punctual and local. Today changes are permanent, international in firm's life because they are more frequent. [...]

[...] Finally, reduction of costs is the consequence of all theses changes, and the reduction is the symbol of this new way of operations management. Today, reduction of costs is the most important thing in all firms, you have to reduce cost in order to succeed and to compete efficiently on the market. This involves a better productivity which is the key of the success because with it you can produce more for a low price with a good quality. When all this conditions are respected you can go and compete on the market. www.mapnp.org/library/ops_mgnt/ops_mgnt.htm Operations management changed a lot in the last decade. [...]