Key Elements of Operations Management

Operations management is a business area that concerns with the production of goods and services. It involves overseeing, designing and managing the process of business operations. This method covers the responsibility of ensuring that the company is offering an effective strategy.

It also focuses on the techniques and tools that a manufacturing firm uses to guarantee a smooth production procedure. With operations management, corporate leadership will enables you to allocate the right amount of time to numerous business ideas.

The typical examples of these are strategic management, long-term profitability and employee productivity. This application allows the segment chiefs and department heads to cope with external factors. As a result, they may find ways to beat the market competition. Continue reading

Advantages and Strategies of Lean Manufacturing Method

All businesses aim for success, and one way of achieving it is through cutting of expenses. This can be done through lean manufacturing system. This method is also known as lean enterprise or lean production.

It is a concept on how to manage or run a business that focuses on “zero or no waste” policy. These wastes can be on different types, and these are over-production, inventory, conveyance, motion, correction, processing, transportation, waiting and underutilized people.

For customers, this is known as a production practice that is focused on the different strategies on how to consume the value of a specific product or service offered. This is centered on preserving the value with less effort or work. Quality is very essential in lean manufacturing. Continue reading

How to Apply and Implement JIT – Just in Time Inventory ?

JIT, also known as just in time inventory, controls work flow through carrying in materials and sending out goods on demand. These materials are enough to give what consumer need.

JIT also requires a company to produce or buy only the materials needed for production. With this system, the company’s main goal is to have zero inventory. Business establishments that are employing JIT method reduce the number of materials on hand to the shortest possible levels.

Companies often hold inventory in three different locations. These are the raw materials, work-in-process inventory and shipping of finished products. The just in time inventory is opposed to warehousing large amount of inventory at all times. However, this system has both an advantage and disadvantage. Whether you are new to business industry or not, you should know the different facts about just in time inventory. Continue reading

Business Process Improvement – Its Tools, Steps and Other Facts

BPI or business process improvement is a systematic approach of helping organizations to attain effective and efficient results within the business model. This method works by deciding on the purpose and goal of a company. In using BPI method, it is essential to know the existing structure of a firm, its current procedures and other concerns.

Managerial, production and support activities are all under the category of business processes. They involve a series of steps to generate a perfect output. Knowing the conditions and activities of every step allows business experts to enhance organizational performance.

They do this through eliminating unnecessary and merging steps. To help businessmen to be more capable in their processes, tools for business process improvement must be used. Continue reading