Operation Management
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EXECUTIVE SUMMARY
Management at high level assumes the responsibilities in these key areas including planning, organizing, leading and control. Bantex management structure was responsible for making strategic operations related decisions in order to successfully manufacture different kind of pumps and camshafts. Their target market was the mining industry. When organisations have strategies, policies, rules, plans and targets in place, management are in a better position to formulate all the inputs needs necessary to the transformation process moving forward.
The input resources are usually classified into two below categories:
Transformed Resources – those that are transformed in some way by the operation to produce the goods or services that becomes the outputs.
Transforming Resources – those that are used to perform the transformation process
The responsibilities of the management structures include understanding relevant operations performance objectives, setting an operating strategy, the design and the production of the product, planning and controlling the operation and the improvement of the operation over time.
The outputs of any organisation refer to their offered products and service, sales revenues and distribution strategies/channels. It is imperative for the business to put systems in place to maximise customers satisfaction. Bantex provided innovative products to the market and were one step ahead the competition. Although Bantex was enjoying its competitiveness in the market it was time for them to look at new business ventures/markets since the mining industry was going down.
Bantex was offering high performance pumps and there were no “comebacks” of their products. For any organization to be successful and or profitable whether they are service or product oriented, they must have the following five competitive objectives.
Quality
Being right
Speed
Being fast
Dependability-
Being on time
Flexibility-
Being able to change
Being Productive
When you look at Bantexs performance for the first two years they were able to meet the strategic goals and objectives that were set though later a huge profit loss emanated. The fact that mining sector experienced difficulties it affected Bantex, hence their sales and design departments were a bit complacent. Their distribution strategies were effective hence there were no customer complains. Bantex was supposed to ensure that all departments devise strategies that will reduce costs and not only the production department.
Once Bantex have developed clearer strategies it will yield proactive operations and they will likely forecast the changes in the markets, and this will put Bantex in an advantageous position to compete under any strains of the market and even look at expanding their markets. Bantex must consider implementation of the suggestions and recommendations made by the analyst because successful organisations always review the way they do things to ensure that all the stake holders in the business are not neglected or the business is still following the organisations goals and strategies.
TABLE OF CONTENTS
INTRODUCTION
OPERATIONS STRUCTURE
Management
Inputs Resources
Transformation Process
Outputs
Market (Customer care)
4-STAGE MODEL OF OPERATIONS
COMPETITIVE OBJECTIVES
CONCLUSION AND RECOMMENDATIONS
REFERENCES:
INTRODUCTION
This assignment deals with the vital components of operations management which could be found in any organisation that offered products and services. These include the operating structures which should be in place to ensure that operations are run successful in order to contribute to Bantex overall profitability. It will also highlight how “four-stage” model of operations contributions affected Bantex and its yielded results. The main competitive objectives that make any organisation to successful will also be explained in detail.
OPERATIONS STRUCTURE
Discuss the operating structures. Use the operating structure model to answer this question.
Operating Structures of Bantex Engineering Works
Management
Management at high level assumes the responsibilities that include planning, organizing, leading and control.These principles apply generically in different sectors of business which is equally applicable to Bantex. Bantex management structure was responsible for making strategic decisions for the company, developing policies, devising plans in relation to production, financial and marketing, and setting up of targets in relation to the manufacturing of different kind of pumps.
The management structure of Bantex was functional because they could notice their sales figures which were dropping. They also had a plan to deal with these declining revenues of their products as it is evident when a special meeting was called for the production manager had to give account for the slumps in profits. The planning analyst was also hired to come up with a new planning system. These management responsibilities were responded to by different levels of management and functional areas, the following is the order of the responsibilities and functional areas.
Managing Director
The Managing Director responsibilities would primarily be policy formulation and strategy as well overseeing the overall objective and performance of the organization. The managing director at Bantex was also responsible for ensuring that the organisation makes profits and that is why he wanted the production manager to come up with ways of cutting costs. In this case he displayed his leadership and organising capability.
Production Manager
Bantex production manager was responsible for production and delivery