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Discussing the Operations of Management Areas

Question: What are some common elements of the four operations management areas: productivity, inventory, capacity, and quality? Compare the relative importance of these in manufacturing.

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According to Certo (1994), operations management deals with managing the production of goods and services in organizations. Specifically, it involves selecting, designing, operating, controlling, and updating production systems.

Robbins and Coulter (2002) define productivity as the overall output of goods or services produced divided by the inputs needed to generate that output. The level of productivity, including its degree of effectiveness and efficiency affects the ability of the company to produce the desired level of outputs.

As the ratio of overall outputs of goods and services to the inputs of resources utilized, the main components of productivity include the plan of action, the strategies and means utilized to implement the production plans or to transform the various inputs into outputs, and the productivity monitoring and control measures utilized.

In relation to manufacturing, the main objective of companies is to produce the desired level and quality of outputs with the minimum level of resources possible.

Inventories are of various types ...

Solution Summary

The solution discusses the operations of management areas.