Question

Global business competition, real time performance and flexibility among other indicators have facilitated organization’s view its products through the business process lens rather than final product. This may also be referred to as value chain. With reference to manufacturing sector, show how operations management has assimilated this concept

Answer 1

" Global business competition, real time performance and flexibility among other indicators have facilitated organization's view it's products through the business process lens rather than final product."

According to the given concept, it is true that at this time when companies are facing competition globally and real time performance is very essential for getting competitive advantage, Companies are focusing more on their business processes rather than the final product. The reason behind is that to get an edge over competitors, companies cannot rely on final product only because each and every aspect of production is important equally from raw materials to finished product. Each aspect is handled by a business process and companies have to keep a tab on each of the business processes in order to create value for the final product.

Each business process is called business operation and for best productivity these operations should be managed properly and this is also called operations management in business sector. As asked in the question, let's discuss business processes or operations in manufacturing sector:

In a manufacturing company, Generally following business processes are followed:

1) Procurement process

• Procurement process as a business operation or process is related with the procurement of goods and other essential requirements to keep the business sustainable.
• In procurement process, only materials or raw materials are not included but spare parts, employee needs, medical devices, cleaning equipments, building needs, carpentry tools and other materials and components are also included.
• From the global competition and real time performance point of view, this process should be managed properly, efficiently and effectively.

2) Inventory In & Out

• In business processes where raw materials are processed into final products many materials enters or exits the company automatically.
• This entry and exit of materials during the business operations is called In Out inventory process.
• In Out inventory process handles and controls the flow of goods during the production process.
• In order to complete production on time to give real time performance and get the competitive advantage globally, flow of goods or materials should be managed efficiently and effectively.

3) Production process

• Production process is one of the most important process in Operations management.
• Production process deals with the process of converting raw materials into finished goods or final product.
• Production process division depends on the requirements of the industry.
• For example, divisions like Production planning and Inventory control(PPIC) and Quality control (QC).
• To get the best final product, production process should be managed effectively in order to get competitive advantage globally and high performance levels.

4) Administration and General

• Policies, directives and supervision is required for effective and efficient management of ongoing business operations or activities.
• Administration and general as a business process deals with the above concept.
• Effective administration creates better organizational atmosphere that leads to high performance levels to get competitive advantage globally for a company or business.
• Administration generally includes several costs like accounting fees, employee costs, salary costs etc.

5) Marketing and sales

• Marketing and sales as a business process deals with the promotions and sales of the final product in order to make profits.
• Marketing and sales as a process is very important to position the product in the market globally in order to woo the target audience.
• By the effective management of marketing and sales, a company gets competitive advantage and great product performance in the global market.
• Marketing and sales as a process includes promotion costs, transportation costs, warehouse rent, employee salary costs in marketing department.

6) Finance and Accounting

• Finance and Accounting as a business process deals with the overall financial aspects of a company in order to fulfill the financial requirements of each business activity.
• Healthy Accounting and finance process enables an organization to meet production needs and control over debt.
• Accounting deals with the tax structure made by the governments globally.
• In order to face global competition effectively Finance and Accounting should be managed properly.

So, these are some business processes in manufacturing sector that deals with operations management because each process is an operation.

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