Operations management is a very crucial subject for business operations to maintain properly. The importance and value of the operations management in achieving the business objectives are described as follows in the analysis of the organization Marks and Spencer Ltd.
Importance and Value of Operations Management
There is a total of eleven importance of operations management
Production Efficiency
Production is the prime area of cost minimization for any company. By the proper cost calculation marks and spencer can avoid the high costing and ensure the production efficiency of their product.
Profit Maximization
The main goal of any business is profit maximization and the goal can be fulfilled by maximum sales to the customers and efficient operation management. Marks and Spencer need to focus on their customer base and increase the base with attractive offers and promotions.
The Satisfaction of the Customers
Satisfied and happy customers make a businessman satisfied and successful. This statement proves that the key to success lies in customer satisfaction. So the company needs to provide its customers with their demand and satisfied them with their desired product varieties (Rollins and Thompson, 1978). This is also done by the appropriate implementation of operation management.
Effective Utilization of the Resources
Operations management ensures the proper utilization of the resources. Strong operation management planed each and every sector of the utilization of the invested resources in the production and operation process.
Management of Inventory
Operations management ensures the best use of inventories. Marks and Spencer use total quality management (TQM) inventory strategy which saves resources and ensures effective production of the clothing and their selling time (Ulrich, Dyllick and Probst, 1984).
Capacity Management
Capital investment is managed by the operation management properly. All the resources and capital utilization done properly in various working processes. Operation management prevents the wastage of unused capital and ensures safety for future use.
Improvement of Product Quality
Mark and Spencer are very careful about their product quality and maintenance. Continuous the company is trying to improve its product quality to make them better and more preferable to the customers, which is one of the prime concerns of operation management (Ulrich, Dyllick and Probst, 1984).
Create Strong Operation Skill
The skills base of the employees can be improved by the operation management planning. Operation management helps to build a strong employee base and ensure the skilled workforce supply to compete with the global market.
Improvement of Working Conditions
The Working condition is very important for employees to work motivation which is ensured by the operations management. Workplace safety and comfort depends on operations management. The more facilities become well, the better performance can be expected from employees.
Supply Chain Management
Operations management ensures a good relationship with the suppliers to ensure their raw material supply for a long time and maintain a long term relationship with them (Ulrich, Dyllick and Probst, 1984). The relationship with intermediaries and suppliers can get better with the help of operations management.
Scheduling Management
Operations management plan a schedule of work for business to perform on a daily basis to ensure long term success. All the business tasks are pre-scheduled and scheduling helps the managers to maintain co-ordination of the operation in the organization.
Written by
Email: [email protected]