Factors Affecting Operations Management

Christian Bernard O. Untalasco

Management 9

1.) Major Internal environmental influences on the production system.

1. Financial decisions - it affects the choice of manufacturing equipments, ( whether to buy or repair/improve)
2. Accounting - it provides information on the costs and prices of materials used in production, it guides managers in evaluating the performance of the production.
3. Marketing - it is responsible for the understanding customers needs, it gives the management the idea of what the customers wants and improvements, feedbacks and suggestions in the products.
4. Product design and engineering - it determines the product specifications to meet the customers needs and the production methods necessary to make the products.
5. Human resources - it provides manpower to the organization, it recruits and trains employees, it is responsible for manpower development and motivation
6. Research and development - it responsible for investigating new ideas and their potential uses as consumers products. Every organization must have this so that their products will have improvements  and it will not become obsolete in the market.
7. Purchasing - it is responsible for acquiring materials and supplies necessary for production. A mistake in purchase materials might cause delay in production, so purchasing department must be strict in implementing the company procedures for procurement and improve it as necessary.
8. Traffic - it is responsible for distributing the finished goods to customers. Every company must have good traffic control so their customers will be satisfied. A delay in the delivery might cause loss of customers.
9. Legal services - it ensures that the company is complying with the laws and regulations for product labeling, performance, safety, packaging, transportation, and other contractual requirements.
10. Information systems - it provides the means for capturing, analyzing and coordinating the information needs of each of the preceding areas. It is responsible for the smooth flow of information within the company.

1. Major external environmental influences on the production system

1. Economic conditions - it provides information on how does the company could provide or manufacture  products, it determines if the company will produce more or produce less based on the consumers needs or purchasing power.
2. Government regulations - the government is responsible for ensuring that all companies must comply with the regulations ( laws on labor, laws in advertising, laws on safety, laws in labeling and packaging, laws on environmental protection, etc.)
3. Competition - you must be capable of handling competition or else you will not survive in the market. You must be able to produce products of different varieties, different taste, different designs,  so customers may be able to see new things that could be attractive and they will patronize these products.
4. Technology - every production must have the best technology so that the quality of their products will be high quality. Technology reduces the time of the production, it reduces the cost of labor, then the production system through the use of necessary  technology will become effective and efficient.

1. The role of operations manager in delivering customer value through the continues improvement of overall company performance and capabilities.

1. The role of operations manager is the implementation of current company operation policies, policies that includes the standard operating procedures in the production system, satisfying the  marketing department needs or request, to formulate strategic planning for distributing finished goods to customers efficiently and effectively, to formulate or supervise the group responsible for product design and engineering so that the customers needs and wants will be addressed and facilitate the production methods to be used, to formulate strategic planning for research and development so that current list of products will be improve and modified, or new products will be developed for consumers, to ensure that all manpower involved in operations will be compensated accordingly, will have trainings and seminars, will have the opportunity to improve their lives, will have the benefits and rewards.

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