Technology and Operations Management Puspita Ramadhania

Home Assignment 1 20/471001/PEK/26728

A set of activities that creates value in the form of goods and services by transforming inputs
into outputs is called operation management. As one of the three major functions of any
organisation, operation management is integrally related to all the other business functions. It
is very important to know how operation activity functions.

Operation management gives the manager the opportunity to organize themselves for
productive enterprise, know how goods and services are produced, understand what operations
managers do, and find the opportunity for an organization to improve its profitability and
enhance its service to society.
Technology and Operations Management Puspita Ramadhania
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The Supply Chain

There are ten strategic operations management decide to be able to increase efficiency,
effectiveness and competitive advantage. Those are:
1. Design of goods and services.
2. Managing quality.
3. Process and capacity strategy.
4. Location and layout strategy.
5. Human resources and job design.
6. Supply chain management and inventory management.
7. Determines and implements intermediate- and short-term schedules that effectively and
efficiently utilize both personnel and facilities
8. while meeting customer demands.
9. Maintenance.
Technology and Operations Management Puspita Ramadhania
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Manufacturers produce a tangible product, while service products are often intangible. But
many products are a combination of a good and a service, which complicates the definition of
a service. The operation activities for both goods and services are often very similar. For
instance, both have quality standards, are designed and produced on a schedule that meets
customer demand, and are made in a facility where people are employed. the distinction
between goods and services is not clear-cut. In reality, almost all services and almost all goods
are a mixture of a service and a tangible product. Even services such as consulting may require
a tangible report. Similarly, the sale of most goods includes a service. For instance, many
products have the service components of financing and delivery (e.g., automobile sales). Many
also require after-sale training and maintenance. “Service” activities may also be an integral
part of production. Human resource activities, logistics, accounting, training, field service, and
repair are all service activities, but they take place within a manufacturing organization. Very
few services are “pure,” meaning they have no tangible component. Counselling may be one
of the exceptions.

The creation of goods and services requires changing resources into goods and services. The
more efficiently we make this change, the more productive we are and the more value is added
to the good or service provided. Productivity is the ratio of outputs such as goods and services,
divided by the inputs such as resources, such as labor and capital. This improvement can be
achieved in two ways: reducing inputs while keeping output constant or increasing output while
keeping inputs constant. Both represent an improvement in productivity. only through
increases in productivity can labor, capital, and management receive additional payments. If
returns to labor, capital, or management are increased without increased productivity, prices
rise. On the other hand, downward pressure is placed on prices when productivity increases
because more is being produced with the same resources.
Productivity has three variables that critical to improve productivity; those are labor,
management and capital. Improvement in the contribution of labor to productivity is the result
of a healthier, better educated,
and better-nourished labor force. Some increase may also be attributed to a shorter
workweek. Three key variables for improved labor productivity are:
1. Basic education appropriate for an effective labor force.
2. Diet of the labor force.
3. Social overhead that makes labor available, such as transportation and sanitation
Technology and Operations Management Puspita Ramadhania
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The trade-off between capital and labor is continually in flux. Management is a factor of
production and an economic resource. Management is responsible for ensuring that labor and
capital are effectively used to increase productivity. More effective use of capital also
contributes to productivity.

Much of the progress of operations management has been made in the twentieth century, but
since the beginning of time, humankind has been attempting to improve its material well-being.
Now days with the advance technology, especially in the pandemic era, business is facing with
a double-kill challenge. Adaptation to fast changing business environment while at the same
time juggling to push digital transformation forward. Operations managers are key players in
the battle to improve productivity. Productivity improvements and a sustainable environment
are difficult to achieve, but operations managers are the primary vehicle for making
improvements. Value the process rather than focus too much on the outcomes will help
operation managers to balance efficiency and effectiveness in the fast changing and high
competition business environment.

Source:

Heizer, J., Render, B., & Munson, C. (2017). Operations Management: Sustainability and
Supply Chain Management (12th ed.). Pearson.