Executive Summary:
The purpose of this assignment is to discuss two topics relating to Operations Management and tie it in to examples from companies. I have chosen to discuss both Inventory management and capacity management. The company examples have both come from the airline industry. I have discussed inventory management with regards British Airways Maintenance Area in Cardiff. They have recently implemented a fully online inventory system. By doing this they have increased their efficiency and have significantly reduced costs. They can now maintain over one hundred planes every year compared to seventy six previously. I have also discussed the limitations of inventory management while also discussing their limitations. I have discussed yield management with regards the low cost airline Easyjet. Their unique yield management system means that they are able to get the most cost out of every flight because they have segmented their customers into two distinct groups: Business and leisure. I have also discussed the theory and components of Yield Management and have tried to tie it in with Easyjet.
Inventory Management:
The topic which I will be discussing in this section is inventory management. Inventory defined as ‘’the standard accumulation of resources in a transformation system’’. (Slack 2011 p. 198) Inventory is an important part of any business because the cost of holding inventory can be very expensive. The case study I am looking at with regards inventory management is the British Airways Maintenance Facility in Cardiff (BMAC) and their management of inventory for their maintenance, repair and operations (MRO) stock at their base.
Theory:
It is a necessary part of any business because there is a differenc...
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Kimes, S.E. (1989). Yield Management: A Tool for Capacity Constrained Service Firms. Journal of Operations Management, Volume 8 Issue (4): pp.348-363
Slack, Nigel, and Stuart Chambers. Operations management. 6th ed. Harlow: Financial Times Prentice Hall, 2010. Print.
Slack, Nigel Essentials of operations management / Harlow, England; New York: Financial Times Prentice Hall, 2011
Case Studies:
Case study of Inventory Management. Available at: http://www.cribmaster.com/case_studies/bamc_b&h_cribmaster.pdf (First Accessed on 10th April 2014)
Case study of Inventory Management. Available at: http://cms.buckandhickman.com/Documents/VMI/B&H_-_British_Airways_Case_Study.pdf(First Accessed on 10th April 2014)
Case study of Yield Management. Available at: http://cws.cengage.co.uk/page2/students/cases/8-2.pdf(First Accessed on 10th April 2014)
Ebert Ronald J and Griffin Ricky W. (2011).Business Management.(8th edition). Business essentials, (pp.94-97), Boston [Mass]; London: Pearson.
Vonderembse, M.A. & White, G. P. (2013). Operations Management. San Diego, Ca: Bridgepoint Education, Inc.
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.
Once they develop and implement this inventory control system, inventory records are going to be upheld truthfully and that they will get the accurate standing of the inventory up-to-date. In order to maintain the steady continuous supply for production need... ... middle of paper ... ... ory holding costs, ordering costs, and shortage costs, and have a classification system for inventory items. In conclusion, while reading the case study, I saw much disorganization throughout the company’s entire system.
Burrow, J. L., & Kleindl, B. (2008). Business management. (13th ed., p. 562). Mason, Ohio: South-Western.
Operations management is that part of a business organization responsible for planning and coordinating the use of the organization’s resources to convert inputs into outputs. The operations function is one of three primary functions of business organizations; the other two are marketing and finance. The operations function is present in both service-oriented and product-oriented organizations. Operations decisions involve design decisions and operating decisions. Design decisions relate to capacity planning, product design, process design, layout of facilities, and selecting locations for facilities. Operating decisions relate to quality ass...
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.
Operations Management Process is the central arteries within the organization because it produces the planning process for goods and services, which are its reason for existent. Operations management is linked to all organizations as every organization is producing either a product or a service. However, it cannot be said to be the most important function since there are other functional areas and boundaries within an organization. In today's fast changing world, organizations have to have a tendency towards being efficient, effective and innovative to the changing environment to succeed. Operations Management has to use metrics in order for them to accomplish their task and be successful with minimal interruptions within the organization.
Schonberger, R.J. and E.M. Knod Jr. Operations Management: Continuous Improvement. Richard D. Irwin, 1994, p. 44. 16. Selto, F.H. and D.W. Jasinski. "
Inventory management is a method through, which a business handles tangible resources and materials to ensure availability of resources for use. It is a collection of interdisciplinary processes including a full circle from the demand forecasting, supply chain management, inventory control and reverse logistics. Inventory management is the optimization of inventories of manufactured goods, work in progress, and raw materials. According to Doucette (2001) inventory management can be challenging at times; however, the need for effective inventory management is largely seeing more as a necessity than a mere trend when customer satisfaction and service have become a prime reason for a business to stand apart from its competition. For example, Wal-Mart’s inventory management is one of the biggest contributors to the success of the company;
Operations management is a dynamic field and presents exciting new issues and challenges for operations managers. For example, Maura Sprenger, human resources director at Techno Inc., a fast growing information technology company, is faced with a very difficult issue between winning a multimillion dollar business contract with Apex Company or run the risk of causing a very knowledgeable and valuable employee to quit.
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.
Slack, N., Johnston, R. and Brandon-Jones, A. (2011).Essentials of operations management. 1st ed. Harlow, England: Financial Times Prentice Hall.
University of Phoenix(Ed.).(2003) Operations management for competitive advantage[University of Phoenix custom edition e-text]. New York: McGraw-Hill. Retrieved February 01, 2005, from university of phoenix, Resource, MGT554- operations management website: https://mycampus.phoenix.edu/secure/resource/resource.asp
My experience and erudition is my strength which I wish to embolden and use to my advantage. in the concentartions “Transportation and Logistics” and “Inventory Management”, are a combination of inventory ,logistics and management concepts, wherein I seek expertise. For that, I look forward to learning from the acclaimed faculty at your university, prof ______________ and _______. I am excited that their research interests perfectly match my own.