Operations management can be defined as “a systematic approach to address all the issues pertaining to the transformation process that converts some inputs into output that are useful, and could fetch revenue to the organisation” (Davis, 2009, p.5). To put it simply, operations management for the Company comprises management of activities and processes that transforms raw materials into products.
Operations management is inter-connected with many other business functions such as marketing, new product development, accounting and finance, human resources management (HRM), supply-chain management, as well as, technical functions of the business. For example, the quality of supply chain management for the Company directly effects operations management in a way that inbound logistics of raw materials of low quality is going to compromise the quality of the output.
Similarly, operations management do have direct impacts of performance of marketing departments, because low quality of Company’s power garden tools is may contradict with marketing communication message of the marketing department with negative implications on Company’s brand image. Therefore, operations management needs to be viewed from a systematic approach as a part of overall organism known as the organisation.
Activities involved in operations management for the Company include designing processes and products, controlling and purchasing the inventory, planning and control of operations and planning raw materials and production capacity.
Implementation of the proposed management initiative of producing upgraded product range for online sales is going to have significant implications on all activities involved in operations management in strategic and tactical levels. In other words, the proposal is associated with significant increase in the volume of output despite the fact that the Company is operating to near capacity with limited space for increasing inventory.
Davis, M. (2009) “The Fundamentals of Branding” AVA Publishing SA