Thursday, February 27, 2020

The role of two selected topics in Operation Managment Research Paper

The role of two selected topics in Operation Managment - Research Paper Example In order to promote the competitiveness of organizations, promote cost efficient and accurate methods unrestricted flow of information is necessary. Hence, the key role of supply chain in operations is to ensure that all processes are in place in order to get accurate results. In order to ensure that the supply chain is cost effective and efficient, companies use a process known as supply chain management. A series of steps are followed by firm in order to ensure that the company transforms its raw materials into finished products. These series of steps may comprise of five stages namely, planning, developing, creating, delivering and returning defective products. With the changing markets globally, many companies and firms are forced to review their operations policy. Companies have changed from centralized operations to decentralized operations to be close to their markets and take advantage of available resources (Gunasekaran & Ngai, 2005). a) Procurement – One of the major roles of supply chain in operations management is that of procurement. All companies need to order goods and services in order to conduct business. A good supply chain manager is one who ensures that best quality goods are obtained at the least price. In manufacturing, the key responsibility and role of a procurement specialist is to search for vendors to procure materials which match the budget constraint and quality requirement. Hence a key requirement of purchasing professionals is to develop relationships with their suppliers and even look out for partnership options wherever feasible. A firm having an efficient supply chain management process seeks to provide purchasers multiple benefits which also include increased and improved coordination with suppliers. If the coordination between purchasers and suppliers is better, then this leads to increased commitment and a long term relationship between the suppliers and purchasers; thereby leading to a cost effective option to the pu rchasing organization (Giunipero & Brand, 1996). Smaller organizations need to order stationaries and hence they need to maintain a regular list of vendors who provide them the best quality products at the lowest price. Hence, an efficient procurement specialist should be a good negotiator in order to get the best deals from the suppliers. b) Transportation – One of the major roles of supply chain in operations is to efficiently handle transportation. Transportation in an essential part of the production process right from manufacturing of the product till the time of delivery to the final consumer and returns. The key prerequisite for this process to be successful is to ensure excellent coordination between each component in order to attain optimum benefits (Tseng & Yue, 2005). This requires in first determining the best suited and cost effective method of transportation applicable to the organization. Managers responsible for this first try to assess the tradeoffs in terms of price and speed. Most companies may have two or more modes of transportation depending on the urgency of the requirement. Shipping goods and equipment through a truck may be cost effective than by a flight. However, the time taken to send the consignment may be more in comparison to the time taken to send the goods by flight. Also some transport services may be highly

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