There is a substantial amount of research on the importance of managing supply chain risks. Action plans should be implemented to prevent the disruption of supply chains. Disruptions can interfere with the flow of products, services, information, and finances. This could potentially lead to loss in customer base and revenues. The problem with supply chain management is that it often becomes too complex to thoroughly manage that one disruption can lead to multiple problems within a supply chain. These complexities reduce the control that functions have over their operations, which becomes problematic when managing supply chains. Recent studies have been working towards trying to find underlying solutions that can prevent disruptions. The concept of risk management becomes complicated when trying to map out solutions for organizations because no organization is alike, so there cannot be one possible solution.
Similar ideas presented by Kleindorfer and Saad (2005), Chopra and Sodhi (2004), and Craighead, Blackhurst, Elkins, and Handfield (2005) illustrate the importance of risk management in supply chains. Kleindorfer and Saad (2005) utilize a conceptual framework to assess on how to mitigate disruptions when risks, like natural disasters, occur. The disaster in Bhopal is a pure example showing how risk can create public havoc and dangers to multiple parties involved due to the complex risk situation. To prevent disruptions such as the Bhopal example, supply chains should have identified potential risks, however; one can concur that risks are completely unpredictable sometimes. This allows for operations managers to evaluate the impacts of potential risks as well as move forward and design supply risk mitigation plans. Furthermore, a...
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Operations management is essential for the survival and success of any organization. According to Heizer & Render (2011), operations management (OM) is the set of activities that creates value in the form of goods and services by transforming inputs into outputs. Operations managers today contend with competition, globalization, inflation, consumer demand, and consistent change in technology. Managers must focus on the efficiency and effectiveness of processes such as cost, dependability, distribution, flexibility, and speed. The intent of this paper is to discuss the processes and operations management of the Kroger Company.
Burrow, J. L., & Kleindl, B. (2008). Business management. (13th ed., p. 562). Mason, Ohio: South-Western.
Operations refers to the transformation of raw materials(inputs) into finished products(outputs). The operations process is one of the key business functions and is a crucial component to business success. Like every business, Qantas is affected by many internal and external influences requiring it to have effective strategies to respond to these influences. Businesses that are able to adopt and utilise effective operational strategies are able to quickly adapt and either reduce or take advantage of these influences that impact the business. The effectiveness of these strategies can measured by Qantas’ performance and whether or not it is able to hold it’s competitive advantage. How well these strategies respond to the influences on operations will determine the level of success that Qantas achieves.
The tool essentially shows the chain of activities required to develop and deliver the products. The effectiveness of the organization vastly improves when all the key activities such as customer, vendor, suppliers and partner within the value chain working smoothly. The value chain used to reduce operational and production cost using low-cost producer strategy. If two service or products are delivery by two separate divisions for two different markets, there are functionality and process that can be integrated to save cost.
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Another effective way to reduce risk is for companies to purchase business-interruption insurance. This type of insurance used to be generally easy to obtain. Today, insurance companies require a lot more information before providing the service to companies. Not only do they require more information on a company's suppliers, the insurers also require that you have a list of multiple suppliers that, if an isolated disaster or accident occurs, wouldn’t all be affected. Companies need to maintain their JIT processes, eliminate redundancies, and at the same time keep a minimum number of suppliers to minimize risks.
... management ande-procurement: creating value added in the supply chain”,Industrial Marketing Management, Vol. 33 No. 2, pp. 219-26.
Matrix structure is first introduced in the aerospace industry in the 1960s and become one of the popular organizational design options in today’s business and industry (Derven & Alexandria, 2010). Burns and Wholey (1993) poinited out that matrix structure were used in advertising agencies, aerospace firms, research and development laboratories, hospitals, government agencies, and universities. Matrix structure is the combination of two or more different structures and take the advantages of the pure functional structure and the product organizational structure (Robbins & Judge, 2011, p. 497). The employees in the matrix may have two bosses: their functional department managers and their product managers. For example, all engineers may be in one engineering department and report to an engineering manager, but these same engineers may be assigned to different projects and report to a project manager while working on that project. In many organizations, a matrix structure is implemented to address the requirement to do more with less and become more agile. The matrix structure, which focuses on horizontal as well as vertical management, has become more widespread as a result of globalization and the...
Operations management focuses on managing the processes of producing and distributing products and services. Operations activities often include product creation, development, production and distribution. It deals with all operations within the organization. Related activities include managing purchases, inventory control, quality control, storage, logistics and evaluations. The nature of how operations management is carried out in an organization depends very much on the nature of products or services in the organization, for example, retail, manufacturing, wholesale, etc.
Over the past decade, risk and uncertainty have increasingly become major issues which impact business activities. Many organizations are raising awareness to minimize the adverse consequences by implementing the process of Risk Management Framework which plays a significant role in mitigating almost all categories of risks. According to Ward (2005), the objective of risk management is to enhance a company’s performance. In particular, the importance of the framework is to assist top management in developing a sensible risk management strategy and program.
Studying pre-existing models of operations management may be a smart approach to truly understand this field. But since technology is advancing by the minute, new concepts, and tools should be adapted for operations management. The book titled Operations Management strategically explains the different concepts, divisions, and approaches to operations management. References Encarta (2005) Definitions of Operations Management. Retrieved September 15, 2005.
At present, every organization believes that operations management plays a pivotal role in establishing and maintaining global leadership, and is a part of the overall organizational strategy. The strategic part that operations management plays in hierarchical execution can be seen as more companies are moving towards dealing with their operations from a value chain viewpoint. There are many reasons that support, operations management an important element for the success of the business. It encompasses manufacturing and services, and its essential in adequately and effectively dealing with the productivity as every company ought to have high productivity which can prompt economic growth and development and help the company’s work force in getting high wages, as well as lead to a rise in organization's profit. Operations management is likewise imperative as it plays a major role in any company’s
Supply Chain Management: An International Journal. (1996). Retrieved April 29, 2014, from emeraldinsight.com website: http://www.emeraldinsight.com/journals.htm?articleid=1464659