This paper is focused on operations management and its influence on the organizational performance and competitiveness. Those benefits that are usually associated with its implementation are outlined. After the introduction of the topic, the case of Going, Inc. is described. Various areas of operations strategy are considered, focusing on the possible improvements that should be made to overcome currently existing issues.
Nowadays, numerous organizations are created every year, but not all of them manage to become successful, ensuring effective production of their goods and services. Mainly, it happens because of leaders’ inability to understand that companies need to apply operations management efficiently, regardless of their type. In other words, business offices, healthcare systems, cafes, factories, and stores are to plan, coordinate, and control their resources (materials and labor) so that the profit of an organization can be maximized. Operations management is vital for every company due to the influences it makes on its successfulness (Codjia, 2017). In particular, it determines organization’s ability to compete, which also means that it affects nation’s competitiveness in the global market. For a company to become successful in the creation of goods and services, it should efficiently perform those functions that are vital for its survival. In particular, marketing, production, and finance are to be fulfilled.
Generally, companies can be divided into two types: those that produce goods and those that deliver services. However, in the majority of cases, organizations are not purely service- or goods-based, which presupposes that they focus on both tangible output and act. In this way, it is not surprising that the scope of operations management varies depending on the organization. Considering airline business, for instance, it focuses on:
- Flight operations
- Ground support
- Facility maintenance
A global view of operations management is significant currently because it ensures that organizations can expand and remain competitive due to the use of innovative strategies. Operations are to be considered to reduce costs, enhance the supply chain and the quality of goods and services, understand different markets, learn how to improve performance, and attract skilled personnel (Aycan, Kanungo, & Mendonca, 2014). All these aims can be reached if a company has well-developed missions and strategies. In this way, professionals determine what an organization is willing to achieve and how it will do it (Cooke, 2012). Depending on the company’s type and its purpose, a range of different mission statements is to be created to meet the main operations management mission. Moreover, it is significant to develop them for all departments.
Going, Inc. is an organization that provides airline services and airplanes production. Unfortunately, it has low performance and poor competitiveness currently. Its service department fails to provide on-time delivery and has issues with baggage handling and overall customer service while its manufacturing department slowly reacts to the increasing demand. As competitive advantage can be achieved through operations, efficient operations management can provide a company with an opportunity to improve its performance, overcoming weaknesses and threats (CSCMP & Sanders, 2014). That is why, Going, Inc. is likely to benefit from operations management. In particular, its divisions should focus on those strategic decisions that deal with “goods and service design, quality, process design, location selection, layout design, human resources and job design, supply-chain management, inventory, scheduling, and maintenance” (Heizer, 2011, p. 41). Thus, implementing strategies for goods and services, Going, Inc. can reach its main mission and become a leader in the airline industry.
The analysis of Going, Inc. provides an opportunity to claim that the company is both service- and goods-based. Considering its strategy statements, the following conclusions for improvement can be made. Its service department requires changes because traveling customers start looking for less expensive options. In order to attract clients’ attention back to Going, Inc., an operations manager should ensure that it focuses on 1) those routes that are not typical for company’s competitors; 2) benefits for clients; 3) technology. Customer satisfaction is likely to improve in this way, but additional changes will be highly valued as well. Flights to the major cities should be managed more than once a day.
Human resources should be enhanced because employee dissatisfaction affects the overall performance of the organization adversely. Its relations with suppliers also require enhancement. As repair and maintenance costs start increasing, Going, Inc. should consider the necessity to write old aircrafts off the inventory. The manufacturing department of Going, Inc. should think of the possibility to streamline its production because current quality inspection is very time-consuming. In this way, the number of plains built per month can increase. It is critical for the organization to improve relationships with its unions and provide up-to-date training for them (The Business School, 2015). It may be beneficial to get a vendor-owned inventory and to align lead time with plane design.
Thus, it can be concluded that operations management has enormous influence on company’s performance and competitiveness. It allows minimalizing costs, satisfying clients and employees, and enhancing the quality of goods and services. Using operations management, Going, Inc. has an opportunity to identify its weaknesses and ways to overcome them. Discussing service and manufacturing departments separately, it can reveal that human resources and chain supply require the most attention.
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