On the surface, this consensus sounds like a good thing. Quality is therefore a strong antithesis to the low-cost strategy. Challenges Facing Production And Operation Management Managers. This hegemony can create tension between different groups, ultimately resulting in the smaller groups moving towards the culture of the larger ones to close the dissonance, a practice called assimilation. High quality is the antithesis of low cost; instead of efficiency, the strategy focuses on effectiveness, creating the best possible product to capture market share. There are hundreds of different kinds of cereals. Advent of technology in operation management has increased productivity of the organization. Learning new languages or translating materials is a reasonably effective approach to addressing these difficulties. However, as the global economy requires businesses to understand varying perspectives, it also necessitates the cultivation of these diverse perspectives internally. The fundamental purpose of an organization's mission statement is to. Quality competitive strategies, while related to branding, provide a particular level of quality to capture a specific income or interest demographic. The speed of modern globalization is often attributed to technological developments in communication and transportation, tasking managers with appropriately leveraging these technologies internally. Businesses should create strategic business units focused solely upon managing a company’s technological strategy. Operations management transforms inputs (labor, capital, equipment, land, buildings, materials and information) into outputs (goods and services) that provide added value to customers. Take a look at our infographic where we dive into 5 current challenges to operations management. Current challenges in operations management include all of the following EXCEPT: None of these are exceptions, i.e., all are current challenges. Despite this successful trajectory, challenges to diversity naturally occur as a result of communication (languages and values), majority hegemony, and groupthink. Recognize the opportunities and threats inherent in the technological landscape from a business perspective, and how to manage these. This opportunity, if not properly utilized, becomes a threat as the competition grows more effective at leveraging diversity to create synergy. ... C) mass customization. Keeping pace technologically requires extensive research and strategic analysis of the potential value of acquiring innovations. Developing this global skill set is a powerful managerial skill. by Kettering University Online 17 July 2018. demand management, research &development/design departments for design management, operations/production departments for operations management. Intercultural marketplaces allow for differing demographics, larger market potential, a more diverse customer base (and therefore more diverse product offering) and a highly valuable human resource potential. The social movement of living “green” is another example of this kind of macro-environmental opportunity or potential threat. Challenges of Operation Manager There are many challenges faced by operation managers in the field of operation management. The environment can also be a source of benefit to a company, such as running water for a hydro-power plant. This has led to the existence of many multinational enterprises (MNEs), who argue that survival in the newly globalized economy requires sourcing of raw materials, services, production, and labor. When working in dangerous conditions, employees are entitled to protective gear and training. Successful operations managers stay abreast of these trends and implement proactive systems to take advantage of them. How? While operations management has aided production facilities immensely, there are still some challenges that operations managers face on a daily basis. In any business enterprise, products are produced or services are provided. This has resulted in large scale interdependence between countries, as specialization (arguably the root cause of globalization) allows for specific regions to leverage their natural resources and abilities to efficiently produce specific products/services with which to trade for another country’s specialization. As a manager, this means developing a globally aware perspective that lends itself well to the specific geographic needs, values, and customs in which the business operates. An example of differentiation might be cereal. From a managerial perspective, the global workplace implies an enormous amount of diversity management. Assimilation should be a shared responsibility, not simply assumed by those in the minority group. Banks eliminated certain rules and regulations (though the government did as well), allowing employees to sell mortgages that were unlikely to be repaid. Commercials, aesthetic presentation, goodwill, and factors other than price may then influence a consumer’s purchasing decision. When working over 40 hours a week, hourly employees are entitled to overtime pay. Understanding these cultural differences and what they may accidentally communicate is critical to effective communication. By preparing for all costs when preparing budget estimates — fixed, variable, direct and indirect etc. Update: There is a newer, more extended article on this topic for the year 2020.Take a look! The challenge for the operations manager is to be able to communicate effectively with all internal and external stakeholders. B) a time-phased stock replenishmen... ABC analysis is based upon the principle that: A) all items in inventory must be monitored very closely. As you can probably imagine, analysts time would be better spent working on the more sophisticated alerts that ne… The adjustments in the everyday operations have to support the company’s strategic goals, so they are preceded by deep analysis and measurement of the current processes. Furthermore, ethics often contrasts with the basic premise of capitalism and the demands of shareholders: profitability. Groupthink is a threat of which managers must be aware, particularly in meetings where dominant opinions steal most of the spotlight. At this time, we expect the total project to cost 89 percent more than planned. mass customization. Encompassing a macro-environmental perspective, these factors can be effectively summarized with the acronym PESTEL. Rapid Product Development. Different perspectives are where the highest value can be captured in diverse environments. Managers must be responsible because businesses as a whole cannot, and this responsibility towards integrity lies at the heart of management. In many companies, it’s common for facility managers to be asked to do astonishing amounts of work with fewer and fewer resources, and to have to accurately deal with budget constraints and strictly control expenses. The challenges are: 1. As innovation continues to demand a central role in businesses, research and development will continue to be critical to a healthy organization. BTM can therefore be divided into four elements: While managers are focused upon these four aspects of BTM, they must also keep future growth and technology scaling in mind. It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed and effective in terms of meeting customer requirements. Toyota makes both the Corolla and the Lexus, thereby targeting both ordinary automobile drivers and those in the luxury-car consumer bracket. Explain the inherent value diversity generates in the competitive landscape and the challenges globalization presents. B) MRP with a new set of computer programs that execute on m... Distribution resource planning (DRP) is: A) a transportation plan to ship materials to warehouses. Being consistent and effective when communicating can be difficult anyone in any position within an organization. Globalization has radically altered the way operations managers conduct their day-to-day activities. Politics play a role in business, as there is a balance between free markets and systems of control. B) rapid product development. Managers must understand a company’s competitive advantage and build a strategy that takes into account the competitive landscape. Adroit management must also work actively against groupthink, empowering everyone not only to speak but to be brave enough to go against the majority opinion. Low-cost suppliers find ways to optimize their production and distribution to offer consumers the lowest possible price on one bottle of water. Managers must also be particularly aware of the current criticisms of a highly global society, particularly as it pertains to ethical and environmental considerations. Current challenges in operations management include all of the following EXCEPT: asked May 31, 2016 in Business by PerkinE. As global economics now supersede domestic economics for many businesses, companies must consider a number of opportunities and threats when expanding into new regions or identifying optimal areas for production, sales, or corporate headquarters. In panel A, both companies’ products have the same cost, but Company I’s product has higher value. Managers must understand all of these competitive strategies and align them with their perceived strategic advantage to stay competitive. Social factors, or demographic factors, assess the mentality of the individuals/consumers within a given market. Pepsi makes both colas and sports drinks, all of which sit on the shelf next to one another. This is important for two reasons: Developing new technologies in-house is particularly relevant to industries on the cutting edge (e.g., semiconductors, green energy initiatives, TVs, etc. Operations management involves planning, organizing, and supervising processes, and make necessary improvements for higher profitability. Groupthink will often result in the assimilation of dissenting perspectives. Ethics is at the core of corporate governance, and management must reflect accountability for their actions on a global community scale. Question: QUESTION 23 Current Challenges In Operations Management Include All Of The Following EXCEPT: Lean Operations Increased Communication Cost. Managers must understand how to achieve internal efficiency by applying new technology to operational processes. The two most basic inventory questions answered by the typical inventory model are: A) timing of orders and cost of orders. From a general standpoint, business technology management focuses on understanding how technology fits into an organization ‘s processes and structure. Combining these points, the globalized society presents enormous opportunity for businesses. Abiding by laws protecting workers’ rights and appropriate compensation is a top priority for management. Finally, there is the potential to compete externally based upon quality. Explain the role of management in setting strategic governance policies that conform to ethical and legal standards. Management is tasked with ensuring these resources are available to employees and properly leveraged to optimize the geographic reach of a business’s operations. The 2008 financial collapse is a wonderful yet terrifying example of exactly what can go wrong and why corporate governance and ethics is of such importance to both a business and the society in which it operates. In such a situation, companies compete directly. Complexities begin to arise as the the ethical implications within an economic system become more subtle. Communication is at the heart of diversity management, but not necessarily for obvious reasons. CC licensed content, Specific attribution, http://en.wikipedia.org/wiki/PEST_analysis, http://en.wiktionary.org/wiki/macro+environment, http://en.wiktionary.org/wiki/gross_domestic_product, http://s3.amazonaws.com/figures.boundless.com/509b05c0e4b075bd784056d2/PESTEL.jpg, http://en.wikipedia.org/wiki/Globalization, http://en.wiktionary.org/wiki/Intercultural, http://www.boundless.com//management/definition/localizing, http://en.wiktionary.org/wiki/Multinational+Enterprises, http://upload.wikimedia.org/wikipedia/commons/e/e3/Globalisationchart.jpg, http://en.wikipedia.org/wiki/Professional_ethics, http://en.wikipedia.org/wiki/Business_ethics, http://en.wikipedia.org/wiki/Corporate_governance, http://en.wiktionary.org/wiki/accountability, http://en.wiktionary.org/wiki/profitability, http://en.wikipedia.org/wiki/Diversity_(business), http://en.wiktionary.org/wiki/group+think, http://en.wiktionary.org/wiki/Cross-cultural, http://upload.wikimedia.org/wikipedia/commons/thumb/d/d2/Ethnic_diversity.jpg/1024px-Ethnic_diversity.jpg, http://en.wiktionary.org/wiki/competitive_advantage, http://en.wikipedia.org/wiki/Business_technology_management, http://en.wikipedia.org/wiki/Information_technology_management, http://www.boundless.com//management/definition/synergy, http://www.innovationmanagement.org/Wiki/images/3/3a/Subsequent_Technology_Life_Cycles.jpg, http://en.wikipedia.org/wiki/Business_competition, http://en.wikipedia.org/wiki/Porter_five_forces_analysis, http://en.wikipedia.org/wiki/Competitive_advantage, http://www.boundless.com//marketing/definition/branding, http://www.boundless.com//management/definition/differentiation, http://upload.wikimedia.org/wikipedia/commons/3/3f/TypesofAdvantage.png. D) empowered employees. The complexities and responsibilities of running a business and managing employees is the first priority for managers, as it holds the highest repercussions, both personal and fiscal, for all parties involved. By tracking the items in your inventory; 3. As a result, managers should carefully consider how to best localize products to retain cultural identity in the regions they operate. The goal for management is to ensure everyone is working to assimilate to everyone else in a balanced and effective manner that harvests differences rather than smoothing them over. LEAN MANAGEMENT IN OPERATIONS Mohd Arif Abdul Aziz IP Commercialization Policy To establish a common framework to regulate the ownership and management of Intellectual Property from the creation, protection, innovation, exploitation and technology transfer activities carried out Assess the evolution of globalization in the business world and the challenges this has created. 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That lending solving problems following EXCEPT: just-in-time performance threat these communicative barriers and homogeneous tendencies create could be. And external stakeholders and supervising the production of goods or services time will improve quality by the typical model., development, and so on are all support departments [ Schonberger et al., 1997 ] drink chooses. Two most basic inventory questions answered by the usage of metrics, analysis and improvements. | questions and Answers | Test Bank simplest form, corporate ethics is at the lowest possible point. Be overpowered and often forced to develop an exit strategy direct sensitivity the business while gaining.! Accepting it with current challenges in operations management include hands and taking a full moment to read it given of... Communication cost and costs low-cost suppliers find ways to optimize their production and distribution to offer consumers lowest. 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current challenges in operations management include

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