Operational Management Controlling the Production of Goods

Question: Discuss about the Operational Management for Controlling the Production of Goods. Answer: Introduction Operational management is a form of organizational management approach that is concerned with controlling the production of goods in relation to redesigning the business operations in the production of goods and services. The operational management allows the management to make a comprehensive decision regarding the process and the production system used in the company. The strategic management takes the essentiality of whole principles of management, this is mostly embraced by the operations of an organization that produces tangible products and other production services. Customer satisfaction, efficiency, and effectiveness in operation only represent the importance of operational management in an organization. Gupta and Boyd, 2008 argue manifestation of operation management approaches will allow the organization to have a firm foundation in terms of production and ensuring that it produces the best products that will satisfy the customers needs and demands(Gupta, 2008). The success of the organization is determined by the operations management advantage, which is determined by management on how they can produce their products and services from existing raw material On the other hand manufacturing organization may not functional well with the operational management approach, this according to the research conducted by Voss et al., 2002 regarding the challenges which affects the functions of operational management in an organization and management and tactical organizational operations. According to the case study, Hawkesbury Cabinets is an organization which will be used to elaborate on the factors and key problems affecting operational management. Hawkesbury Cabinets Company is a manufacturing company which was stabled in 2008 by Fung and Mei Chen, they operated the company by ensuring that every aspect of production process is taken into consideration, this was to allow them to gain customer loyalty as well as gaining trust from the same class of customers. Job-Shop Production system is used by the company to manufacture its products and provide services to their customers. Job shop production system is characterized manufacturing of few quantity of products and produced in accordance with the customer specifications this is within the specified time and cost. Justification of cost and budgets Justification of cost and budgets are the key problem facing the operational management in an organization, it refers to the approach used in presenting the cost and budget of each line in production, the obligation of justification of cost and budget is done by the financial department in the organization(Slack, 2010). Hawkesbury Cabinets company operational management is faced with the justification of cost and budget and cost. The process of analysing the cost and budgets for the production process requires professional individual who understands the financial, cost and budgetary factors which affect the coordination in the production of goods and services(Hill, 2012). According to the financial reporting provided by Mei Chen, the general manager of the company indicates a high cost of production, this relates to the purchase of raw materials. Standardization Standardization refers to the variety of products which are available to the customers, it is one of the key factors which affects operational management in an organization. Standardization in Hawkesbury Cabinets Company is highly discussed, according to case study analysis, it is one of the key factors which affected the operational management in the organization(Khanna, 2015). However, it is one of the components which creates the impact of operation planning which is a principle of operational management. Standardization reflects the improvement of existing products and services, the case study states the impact of the builders which are described to be low volume contract to the operation of the company. Builders imposed the company to produce products which were standardized compare to previous company operation, the uniqueness of the standardized product forced the company to apply more material, and this is to produce kitchen cabinets which meet the customer demands. Sustainability Sustainability is a key element which forms part of the factors affecting the operational management of the organization. According to the case study, Hawkesbury Cabinets Company manages by Fung and Mei Chen they have all distributed the all the management responsibilities amongst themselves. Operational management if focus towards creating a long-term customers strategies, this requires that the company is responsible for creating essential customer operations strategies(Heizer, 2016). Sustainability is an element of lean production theory which is a key production theory used by operational manufacturing companies. It is the production theory which is concerned with reducing the waste during the production process while promoting sustainable business operations(Hitt, 2016). Case study unveils the lack of sustainable operational management in Hawkesbury Cabinets Company, sustainable business operational management is focus towards eliminating the wellbeing of the local customer, Hawkesbury Cabinets Company is comprehended to only focus on the local customer, this is failing to diversify their operation to other customers. Demand in variety of products The demand of variety of products is part and parcel of factors affecting operational management in an organization, particularly in a manufacturing company. Despite the fact of meeting demand, the case study reveals the constraints faced by the company while striving toward meeting the customer demand(Evans, 2002). Hawkesbury Cabinets Company allowed their customer to give their kitchen cabinet design, the company failed to consider the challenges relating to their demand, rise in the cost of raw and labor cost are created by the diversified production of goods and service(Heizer, 2016). Distribution strategy It is one of the key elements that affects the operational management in an organization. It relates to Inventory Management and distribution and Logistics which are the primary aspects of operational management(Schnsleben, 2016). According to the case study analysis Hawkesbury Cabinets Company operations management is affected by problem relating to the distribution strategies and related operation approaches. The custom kitchen products were given priority by the company, this leads to standardize cabinet uncompleted in different production stages(Khanna, 2015). Moreover, it increases the work and task to the company management, the increase in production volume did not match the manufacturing factory area. Conclusion In conclusion, operational management comprises the operations such as controlling, coordinating and managing the resource in an organization. The successful operational management is facilitated by the application and consideration of theoretical approaches and related principles, production system should also be considered by the management as the primary factor in operations management. According to the analysis, different factors affects the essence and functionality operational management, the case study analysis conveys the problems affecting the functions of operational management at Hawkesbury Cabinets Company. References Anupindi, R. C. S. D. S. D. V. M. J. A. . Z. E., 2011. Managing business process flows: principles of operations management.. s.l.:Pearson Higher Ed. Evans, J. R. . L. W. M., 2002. The management and control of quality. Cincinnati, OH: South-Western..South-Western: s.n. Heizer, J. R. B. . M. C., 2016. Principles of operations management: sustainability and supply chain management.. s.l.:Pearson Higher Ed.. Hill, A. . H. T., 2012. Operations management.. s.l.:Palgrave Macmillan. Hitt, M. A. X. K. . C. C. M., 2016. Resource based theory in operations management research.. Journal of Operations Management, 41(1), pp. 77-94. Kerzner, H. R., 2013. Project management: a systems approach to planning, scheduling, and controlling. s.l.:John Wiley Sons. 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