Reading Report Understanding Business - Managing Production and Operations

Name                : Adinda Arum Damarsari - 1701370792

Chapter         : 9

Topic                : Managing Production and Operations

Type                : Reading Report

Resource        : Understanding Business by Nickels/ McHugh/ McHugh

Abstraction :

        The chapter of Managing Production and Operations is basically tell us how to manage or improve the operation system that create and deliver the company’s products and services. It is about systematic direction, control, and evaluation of the whole processes that transform inputs into finished goods or services in a company. Basically, there are two keys in operation management concept which are efficiency and effectiveness. Those two things are very important and need to be balanced. Efficiency is doing something at the lowest possible cost while effectiveness is doing the right things to build the most value for the organization

        As mentioned before,  production and operation management is related to the systems that create and deliver not only a company’s primary products but also  services. For the example of services are the operation management in a hospital, restaurant and university. The system consists of inputs, conversion and output. In a hospital, the inputs are patients, doctors, nurses, medical equipment. The conversion is health care and the output is of course healthy individuals. The second example is in the restaurant where the inputs are hungry customers, food, and chef. The conversion is prepare and serve food and the output is of course satisfied customers. Whereas in a university, the inputs are high school graduates, teachers, books, and classrooms. The conversion is the transferring of knowledge and skills. Then, the output is of course some educated individuals.

        Another interesting thing from this chapter is the mass customization. Basically, mass customization is adjusting or customising product to the changing needs of large consumers with a large number of production. Sometimes it involves technologies such as computerization or internet. It focuses on customers need so that they can have exactly what customers want. 

        The last interesting thing from this chapter is about competing in time which mean being as fast or faster than competition in responding to consumer demands and needs and getting products and services to them. As it is know that quick response is extremely important to competing at all in a global marketplace. By using technologies and computer-based manufacturing, a company will be able to compete in time and in efficiency.

Comment or Opinion         : Managing products and operations is very important because even a small business need a management for their operation. I do agree that efficiency and effectiveness are the key to a successful operation management. A company need to be efficient as well as effective to turn their resources to good or services that are ready to be used by consumers. They need to reduce the cost of their operation for the production without reducing the quality of product and services.