Operation Management of Companies Efficient Operations of Businesses

Question: Discuss about the Operation Management of Companies for Efficient Operations of Businesses. Answer: Introduction The efficient operations of businesses and organisations partly depend on their sense of orientation to both long term and short term goals. Plans, inputs, activities and regulations must always build on the corporate goals. In essence, the principle and practices of organisations have a deterministic role in the achievement of its objectives. In most cases, scheduled evaluations are used to assess whether organisational operations comply with the goals or not (Santos Barros, 2011) This essay explores the ideas of operational systems affecting company's growth and hindering the company from making more profits. The research is also not limited to addressing the issues that may be affecting the business clients. This research is further based on bringing unto company owners knowledge of the company status, its historical development, operational imperatives and academic research underpinning its use. Alternatively, before coming up with all these aspects, there is a need to address the roots cause of the underlying operational issues affecting the company without forgetting to focus on the medium and day to day effects. Operational aspects affecting Hawkesbury cabinet Hawkesbury Company as a manufacturer is facing some operational management issues which are centred on; executive decision making this include; medium term decision and day to day decision. Medium term decisions Medium terms decision making is reliant on the short terms goals which affect operations management in an organisation. Hawkesbury company short-term operational challenges are reliant on three areas. First short term problem evolves from the technology use where all products are processed at the same time and pass through same craftsmen. Despite some products handling well, there may be reduced quality as not all the goods will be purchased. This is evident when customers prefer one product over the other (Lee Yoon, 2011). Second short term goal challenge is in product manufacturing and space. Since the company main sold product is the custom kitchen, the company problem lies on standards cabinets being left behind sitting around the plants in various completion stages. This means rejected project has to be delayed in the company as either dominant or dead stock. These products have an effect on the company space as the company is forced to rent a room to continue workloads and satisfy their customer demands. The renting of a smaller working space is short lived as customers demand surpasses that of available supplier productions. Another medium term decision challenge faced by the organisation is on the delayed delivery time of the products. The company is confronted with a problem of longer promised delivery time (Berkel, Ferguson, Groenewegen, 2016). Delayed services to customers is a severe market problem as it throws customers into the hand of competitors while organisation role should be focused on building win tips to win market competition Day to day decisions These are Operational decisions affecting the company functioning on a day to day basis. Some of the challenges the organisation is facing is that of cabinets competition where both custom competing cabinet are competing from processing time on the same equipment. This could lead to the production of low-quality products. It's necessary for the organisation to have different qualified craftsmen dealing with their skilled area rather than generalising their skills and treating the skills homogeneously. Technical analysis of Hawkesbury Company Functional analyses in most cases are always short term. They are based on the assumptions that price, volume and market data can predict future company performance accurately. The technical analysis fails to look into considerations security value of the market (Arnold Shockley, 2010). For instance; Fang and Mei switching of role identity informally due to client growth and them are developing an interest to serve their customers more. However short, the decision made leads to further growth of the company to an extent they have to switch to another process of renting a room to continue effectively with their business. The assumption, in this case, is based that; due to the high registered volume of products sell the small room will be enough to accommodate all client needs (Do, Brooks, Treepongkaruna Wu, 2014) Another technical analysis is based on Mei Chen review on the company progress basing her judgment on the large volume of profits the company has made and increased amounts of products demand. She, however, has failed to look at the effect the increase in volume has on the company and how it may affect the future company progress. From these analyses it can be said that the production process used by the company is a short lived method that may adversely affect the company I n future if not appropriately addressed. Problem definition in Hawkesbury Company The main problem the company is facing is reliant on the new builders kitchen. The builder kitchen has the following effects on the company. First, there is an increased register sale of kitchen builders leading to low or no sales of the cabinet standards. This means that the company is suffering two problems with the norm cabinets. One is that of financial losses as they are no longer being sold. The other problem relies on space as the standard cabinet occupies working space yet they are not being used. There are rising costs associated with standard builders. This is inclusive of the increasing cost of builder material leading to high costs of raw material production as they are expensive and require the company to invest in high capital. The is also an effect in increased workload as lots of works is still in process, not forgetting the vast finished work which is know congesting the company forcing the company to rent the nearby warehouse so as to reduce congestion. Work fragmentation also makes it hard for managers to observe company progress effectively (Merz, Bhm, Burgert, n.d.) Standard orders cost seems to have risen thus leading to delayed delivery or longer times before deliveries are made. This has an effect on ruining company trust reputation to clients. Finally, there is also a significant challenge in operations pushing the limit to capacity for manufacturing to an extent that there is no space left for company expansion Broader organisational issues caused by operational problems. The move of new builders kitchen may have the following effects on the company finances; foremost is that delayed delivery can cause client loss of reliability to the company thus pushing consumers to look for a quicker option. Clients shift will mean that a lot of kitchen builders will be manufactured yet there will be fewer customers to purchase them. The company will, therefore, be either forced to sell the kitchen builders at a lower price than expected to clear space on the firm on run bankrupt or even sell or close down the company. The increased cost of capital on the raw material will mean increased market price (Arabzadeh, 2012).Some customers, in this case, may opt to like for another cheaper solution. The company may also decide to maintain the same prices as before the Capitals increased but will, however, be faced with the challenge of fewer profit earnings thus managers may find it difficult to meet some of the financial company demands such as paying workers or investing in another income-earning project due to the limitation of funds. Financial limitations will also mean that the company may lose some of their skilled employees to other competitive companies forcing the company to start investing a fresh in new hires who can cooperate with the peanut pay (Mengel Wouters, 2015). Such shifts affect financial status of the company more as the new employees may take a lot of time before adopting to work as per the enterprise standards The company may also experience financial strains as standard cabinets that had been that had already been manufactured are currently not being sold. This means that the firm has a higher possibility of going bankrupt or closing down if an immediate action is not taken to solve the underlying problems. Conclusion A company management structure is wholly reliant on the way in which the company is being managed. Employers should always result to investing on skills training and capacity building of employee to enhance quality delivery of services to clients. Solving all the problem definitions in a company requires that the company owners invest on frequent monitoring and evaluation and auditing so that a third party can help the company owners in dealing with some of the prevailing issues of the company. 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