Operations company to illustrate a service organization’s operations

Operations management is the management function that is responsible for planning, controlling
and coordinating the resources needed in the production of goods and service. It is that function
of management that deals with the core capabilities of an organization.Morash, (2001) defines
operations management as that function of an organization that is concerned with the design,
planning and control of resources for the production of goods or provision of services. It
encompasses the management of systems or processes that create goods and/or provide
services. The scope of operations management ranges across the organization. Operations management
people are involved in product and service design, process selection, selection and management
of technology, design of work systems, location planning, facilities planning, and quality
improvement of the organization’s products or services.
The operations function includes many interrelated activities, such as forecasting, capacity
planning, scheduling, managing inventories, assuring quality, motivating employees, deciding
where to locate facilities, and more.
We can use an airline company to illustrate a service organization’s operations system.
The system consists of the airplanes, airport facilities, and maintenance facilities, sometimes
spread out over a wide territory. The activities include:
Forecasting such things as weather and landing conditions, seat demand for flights, and
the growth in air travel.
Capacity planning, essential for the airline to maintain cash flow and make a reasonable
profit. (Too few or too many planes, or even the right number of planes but in the wrong
places, will hurt profits.)
Facilities and layout, important in achieving effective use of workers and equipment.
Scheduling of planes for flights and for routine maintenance; scheduling of pilots and
flight attendants; and scheduling of ground crews, counter staff, and baggage handlers.
Managing inventories of such items as foods and beverages, first-aid equipment, inflight
magazines, pillows and blankets, and life preservers.
Assuring quality, essential in flying and maintenance operations, where the emphasis is on
safety, and important in dealing with customers at ticket counters, check-in, telephone and
electronic reservations, and curb service, where the emphasis is on efficiency and courtesy.
Motivating and training employees in all phases of operations.
Locating facilities according to managers’ decisions on which cities to provide service
for, where to locate maintenance facilities, and where to locate major and minor hubs.


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