The Nature and Importance of Operation Management

Word Count- 3019 words Table of Contents Chapter 1 - The Nature and Importance of Operation Management and its Key Elements WH Smith is a British retailer, well-known and publically-quoted book retailer, and newsagent and entertainment product in the UK. Recently it was reported how Kate Swann, the former CEO for the last 10 years, has turned the company around from  £135m losses to  £106m profit in a decade (Holland). The reason behind this profit is the right decision of Kate Swann. Now let’s see what she did to make WH Smith profitable (Creevy). 1.1 Operation Management and its Importance In recent years, the scope of operation management has†¦show more content†¦Inputs, transformation activities and outputs are drawn together by process. It identifies the when and what amount of resource is needed for activities. 1.2.3 Capacity Capacity means the capability of the firm in terms of production. How much out put a firm can produce with a given amount of time. Capacity is the combination of equipment, workflows and skill level of employees. It determines what firm can do effectively and efficiently and what cannot. 1.3 Need to Produce Safely; on Time; to Cost; to Quality and within the Law In production, there are some issue is related in which safety is the key one. In current global business, buyers are giving highest most importance on safety. Buyers investigate the protection of the production plant of the factory from where they will produce their product. If there is not enough precaution is taken, than accident may take place. This may lead to some life cost and may have effect on the end user of the product (customer). Therefore, safety in production is very vital and required from every single perspective of the business. Timing in the production is another vital issue to concern about. If product cannot deliver on time, than buyer or customer may reject to buy the product or they may impose penalty. Demand for the product may decrease due to delay in the production process, even company may lose existing market share. The third significant factor for production is cost. Enough knowledge about cost management is aShow MoreRelatedOperation Managenent1504 Words   |  7 Pagesto Operations Management After completing this chapter, you should be able to: 1. Define the term operations management. 2. Identify the three major functional areas of organizations and describe how they interrelate. 3. Identify similarities and differences between production and service operations. 4. Describe the operations function and the nature of the operations managers job. 5. Summarize the two major aspects of process management. 6. Explain the key aspects of operations management decisionRead MoreOperations Management : An Organization Essay1107 Words   |  5 PagesOperations Management Operations management is a field that can, at times, be misunderstood because of its multidisciplinary nature. 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