Essay on "Describing Operations Management Principles"

Essay 4 pages (1371 words) Sources: 4

[EXCERPT] . . . .

operations management, that are expressed in Chapters 1, 2, & 3 of the Stevenson text and the materials about Johnson and Johnson Company. We will then correlate operations management tools to the specific types of applications. Some of these tools are related to competitiveness, such as forecasting and design.

Summary of Chapters 1, 2 and 3

In chapter 1 of the Stevenson text, the chapter begins by speaking about operations management in which a company produces goods and services on the end. The operations segment of a company needs the support and input of other divisions such as finance and sales and marketing. The production of goods and services means that resources are being transformed into those finished goods and services at the end of the operations management process. Separate goods and services are frequently being produced concurrently. This production of goods and services is distinct from the simple delivery of goods and services. Process management consists of one or more actions that transforms inputs into outputs. This process has to be managed to meet demand. This means that output has to be managed by accurately forecasting demand. Along the way, inventory, quality and cost are managed to bring this about on every level from the layout of factories, to employing training and more. Much of chapter 1 deals with describing the operations management not just as a discipline, but as a career option as well (Stephenson, 2011, 1-20). Certainly, Johnson and Johnson is a typical example of this type of organization. Such films are international in scope, with it operating and selling worldwide and in almost every country on the globe. Consumer products businesses such as contact lenses, medical devices, bandages, etc. are marketed to the mass consumer market, as well as pharmaceuticals products ("Johnson & johnson," 2012). Organizational management allows companies like Johnson and Johnson to rationally plan the company and avoid short-term thinking only of the bottomline that ends in debacles like the recent medical fraud lawsuit against the company (Vertuno, 2012).

In chapter 2, the Stevenson text deals with the issues of competitiveness, strategy and productivity in an age of globalism. Competitiveness comprises taking into account issues such as consumer wants and needs, price and quality and advertising and promotion. In the area of products and services, this deals with cost, design, location of production, quality, quick response, flexibility, management issues such as inventory and supply chain management, service issues and labor issues including management and rank and file employees. Stevenson further on in the chapter delves into the reasons for organizational failure such as neglecting operations strategy, failing to take advantage of organization strengths and weaknesses, shortsightedness, putting too much emphasis on the production/service design and not enough on process, not investing sufficiently in capital and human resources, failing to establish communication and cooperation in an organization and also not considering consumer wants and need. The chapter then delves into a case study in good operations management by analyzing the success of the Amazon company. Then the chapter goes into a number of strategies and tactics for reaching the company's goals such as outsourcing offshore and strategies that increase the volume of output while lowering per unit costs. Also mentioned in the chapter contributing to this process are specialization of product and service lines or limiting service to achieve higher quality, creating newness in products and services, creating flexibility in response and customization of products, increasing product quality, improving customer service and environmental resource sustainability (Stephenson, 2011, 42-47).

Chapter 2 points out how strategy has to be modified when expanding operations overseas because what worked in America may not work in overseas countries. For instance, Walmart discovered that when it opened stores in Japan that he discount reputation backfired on them because Japanese consumers linked low cost with low quality. In such a case, a SWOT analysis is useful because then a company can feel out the strengths, weaknesses, opportunities and threats in a new market. This brings in the concepts of order qualifiers (the minimum consumers will accept in terms of quality) and order winners buy brand… READ MORE

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