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Joseph G .

Monks defines Operations Management as the process whereby resources, flowing within a defined system, are combined and transformed by a controlled manner to add value in accordance with policies communicated by management. Supply chain management, then, is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. It represents a conscious effort by the supply chain firms to develop and run supply chains in the most effective & efficient ways possible. Supply chain activities cover everything from product development, sourcing, production, and logistics, as well as the information systems needed to coordinate these activities. Objectives of operations management Operations management can significantly contribute to the success of your business by using your available resources to effectively produce products and services in a way that satisfies customers. To do this you must be creative, innovative and energetic in improving processes, products and services.[1] The four main advantages an effective operation can provide to your business include:[2]

reducing the costs of producing products and services and being efficient increasing revenue by increasing customer satisfaction through good quality and service reducing the amount of investment that is necessary to produce the required type and quantity of products and services by increasing the effective capacity of the operation providing the basis for future innovation by building a solid base of operations skills and knowledge within the business

objective of manufacturing companies Vendor Relations

Because companies seldom grow their own cotton for shirts or mine their own steel for cars, they must find vendors that supply these raw materials. Thus, an objective of manufacturing is finding a reliable vendor that supplies these items at a reasonable cost. A procurement manager typically researches vendors from all over the world and includes many factors into her decisionmaking. Factors include reputation, the location of the supplier, the size of the purchasing order, and terms and conditions of the contract.


Because manufacturing often involves working near heavy and potentially dangerous machinery, another objective is ensuring the safety of workers. Workers undergo extensive training on how to effectively handle the machinery and hazardous materials. Natalie Sayer and Bruce Williams, authors of "Lean for Dummies" explains companies also undergo an ergonomic

analysis to discover and rectify the source of worker injures. They state that because each injury halts the production line, creates waste and costs the company money in workers' compensation, companies have strong incentives to reduce injuries and create a safe working environment.

Quality Standards

An aim of manufacturing is reducing the number of defects and meeting quality standards. Some companies adopt quality control programs including ISO 9000 or Six Sigma as a blueprint for how to achieve these objectives. By reducing the number of defects, companies develop a strong industry reputation, save money and retain customers reliance on their product. Defects also increase the risk of lawsuits, particularly in the pharmaceutical and automotive industry. A January 2011 "Bloomberg" news article by journalists Bill Callahan and Margaret Cronin Fisk explained how Toyota's recall of 8 million vehicles due to a faulty accelerator has prompted 400 lawsuits.

Efficiency and Cost

Abiding by the budget and operating with efficiency is another objective of manufacturing. Companies maintain efficiency by meeting production schedules, allocating labor in the most cost-productive manner and conducting routine maintenance on machines. If a faulty machine is not identified until it breaks down, the company wastes time and money while waiting for it to get repaired. Similarly, companies pay double and triple overtime to union workers if scheduling and training are not handled appropriately. Steven Bragg, author of "Business Ratios and Formulas: A Comprehensive Guide" explains efficiency in manufacturing is measured in quantitative ways; Measurements include the time spent assembling the product, time spent in queue and the material handling time. Improving these benchmarks increases company profits by producing more goods in less time.