In this occasion MBA League will discuss about Operation Management. Predominantly in any business or company there are four management pillars which are: Operation Management, Financial Management, Marketing Management and HR management. Operation Management itself mainly focusing on how to operate as lean and efficient as possible. There are lots of tools to reach the operation goals. Many huge multinational companies are doing depth research and development in this area. Have your ever heard the “Toyota Way”? Toyota somehow develop such sophisticated system that allows them to become one of the leading automotive industries.
Operation Management itself is tightly connected with other management, easy example; have you ever seen an assembly line within a factory? What did you see? Labor, technology (machine). What did they do? The rule of thumb is “turning sets of output into designated output” in order to be competitive, company using their factories need to produce as many production output as possible, using as low input as possible BUT still managing the output quality. These are the critical role of operation management. How could operation management interconnected with other? We will break it down. Firstly, Operation Management with Financial Management: Operation should work closely with the finance department in order to control the cost and revenue a company could generate with the quality of the output. It’s not wise omitting the quality of the output to reach low production cost. Always bear in mind that quality is one of the competitive advantage of a product. This is a no easy task to do that’s why both department need to work side by side. Secondly, operation management with HR department. We should always see our labor as company’s asset, so they are valuable and we need to treat them nicely. Human resources manage the people, and these people are the ones who work and produce the output for the consumer. Efficient operation is highly dependent to the worker, one of many way to keep setting the bar high is to manage the asset with tools such as training, the purpose of the training is to enhance our worker skill so they would possess better skill and work more efficient. The third is Operation with marketing management. The main concern is how marketing could synchronize with operation, because as we know the main goal for marketing is how to generate revenue for the company, and those revenue came from the output or product which the operation manage. Again the rule of thumb in this area is producing the output in order to maximize profits based on the data which the marketing division generate. Because producing too many output will resulted in high inventory cost, and unable to fulfill the market needs will resulted in unserved demand and leads to profit loss.
There are tons of operation tools we could applied depend on the industry itself. Toyota Automotive industry applied “Just in Time” tools in order to minimize inventory cost, another tools could be applied is TQM; a methodology for actualizing and overseeing quality change on an authoritative premise, this incorporates: cooperation, work society, consumer focus, supplier quality change and joining of the quality framework with business objectives, there are ways to easily understand and applied these tools, one of them is using business canvas model. By suing this model we can see the connection between each of the management functions are tightly connected to each other.
So thanks everyone for reading this article, we will surely discuss these focus again in the future because there are so many things to talk about. Stay awesome Guys! Today’s quote is:
“There are no secrets to success. It is the result of preparation, hard work, and learning from failure.” -Colin Powell-
By: Ibnu Prabowo Putra Mahardika
No comments:
Post a Comment