Forecasting
Forecasting is a planning tool that assists the managers from different organizations and businesses in coping up with uncertainty in the future while relying on data from the analysis trends, data from the past and in the present. The forecasting process is normally based on the management knowledge, experience and judgment. Controlling and planning of the logistics systems necessitates predictions of the future economic activities in order for the management to be in position to match the time lag between supply and demand of the communities (Waters, 2011). The logistic requirements which need to be predicted include: times, labor costs, raw material prices and customers demand. As far as demand forecasting is concerned, demand forecasting involves the estimation of product quantity and service necessitated by the consumers. In order to project the future demand the management is necessitated to analyze the historical sales and trends data.
Moreover, demand might be projected using the event or the seasonal trends. The information and the data collected from the production, marketing, sales and finance department are normally considered. Forecasting or the future projection of the various aspects of the logistics usually assists someone to be a better Operations manager by ensuring that the different aspects from the operational and finance sector are used appropriately (Waters, 2011). Based on the results from the forecasted data the manager can be in position to predict the future uncertainties, serve the organization as a whole instead of in terms of segments, increase sales and ensure that the business remain profitable.
Capacity Management
Capacity management is a strategic management approach that assists the managers to overcome the limits faced by the organization in terms of inadequate resources such as: office space, equipment, technology, inventory and the raw materials. The capacity management also comprise of the challenges attained when the different resources are brought together, during marketing and new product development (Bobby, 2015). The fact that capacity constraints of the resources and processes might be a huge bottleneck for the organizational success, capacity management approach might be an important tool for ensuring a smooth operation for the company. Basically, improper or inadequate capacity management will definitely affect the financial performance and business prospects of the organization. The overall objective of the capacity management is to establish the strategic optimal level where the products and services production potentials reaches the demand, capacity management is related to the long term concerns given the fact that the organization shall be committed to the long term resources commitment. As a manager one needs to understand the broader impacts of resources capacity management towards the entire organization. In order to have an effective capacity management the managers should put into consideration different factors such as: business location, nature of products and services, the processes to be used, human factor, policy, external, supply chain, and operational factors.
Technology Management
Technology management is a discipline of management that enables the organizations and the managers to manage the fundamentals of technology within the organization in order to gain competitive advantage. Technology change within the organization leads to the changes in its processes. Organizations operations are associated with the management processes which deliver and create value for the end user consumers (Salter, 2010). The use of the technology by various organizations ensures improved processes and production of the high quality products and services within the supply chain. The adoption of the technological management in an organization will eventually reduce the costs of operation for the business, enable new market and products creation through innovation and enable the organization to adapt to the format and changes in the business arena. The use of the technology will eventually enable the organization to improve the customers’ services and recognize the administration operations.
The fact that the technology is a vital force in the operation and management of the business, the managers should use it in the business operations and strategies spearhead change. In the modern time, it is difficult to manage the technology because it is changing constantly in a manner that cannot be predicted. Technology management can therefore be viewed as a set of practices and policies which assists in building, enhancing, maintaining and ensuring that the organization remain competitive in the market (Salter, 2010). Understanding the impact of technology management will assists the managers in the operational management of the organization because they will be able to forecast the future trend of the products and services, financial performance of the organization and the market trend. The manager would therefore be in position to coordinate, plan, create new products and services, and manage production and distribution processes with the organization.
Budget planning
The moment the business becomes in operation, it is important to manage and plan its financial position. In order to keep the business on track, it is important for the organization management to establish budgeting processes which are effective to the business. While managing the business it is possible to be challenged by day to day challenges and this might hinder the management from realizing the future success of the organization. Nevertheless, successful managers normally invest their time in creating and managing budgets of the organization (Salter, 2010). Through the budget they are usually in position to regularly prepare, monitor and business plans and organization financial performance. As a matter of fact, structured budget plan usually make a difference as far as the growth of the organization is concerned. Budget plans enables the managers to concentrate the organizational resources on improvement of its profit, increase the return on investment and reduce costs in the processes. The budget planning strategy shall assists the manager in the operational management in anticipating the problems and improvement of the business, use sound financial aspects in decision making, improve focus and clarity. In addition, the budget plan would enable the manager to gain greater confidence in matters related to the organization decision making.
Supply Chain Management
Supply chain management is an approach where goods and services flow are managed. It comprises the storage and movement of raw materials, inventory in the process of manufacture and the finished goods from the original destination to the consumers. In general the supply chain management is the oversight of the finances, materials and information as they move from the supplier to the consumers through the manufacturers, wholesalers and retailers. The SCM normally involves the integration and coordination of the flows with and among the companies. The main reason for the company adopting supply chain management is to reduce the amount of inventory and all the inventory associated costs. The role of supply chain management in an organization is to assist it achieves competitive advantage that is sustainable and to adopt approaches and strategies in the supply chain which maximize value for the customers. The supply chain management deals with various activities such as: product development, production, logistics information systems and sources all of which needs management and coordination in order to achieve the organizational goals and objectives (Lyia, 2014). Organization which adopt supply chain management in its management structure normally link information flows together with the physical flows. The physical flow within an organization refers to the movement, transformation and the storage of materials and goods. The different supply chain partners normally enable the managers to bring together their long term plans and control the movement of materials and goods smoothly down the supply chain. The supply chain management may assist a manager in the operation management by ensuring that the business has a smooth product flow from the supply to the consumer hence reducing the inventory associated costs.
Project Management
Project Management is the use of strategies and approaches which aims at supporting the business through integration and execution of the strategic goals which are aligned with the business operations with external and internal customers. Project management assists businesses in meeting their organizational objectives and at the same time responding to the external environment. Most businesses and organizations in operation use project management to change their operations services and products in order to meet their business needs respond to the new market needs and gain competitive advantage (Randolf, 2013). Projects are important tools in the organization because they drive change within the organization through re-engineering strategies in order to align the needs of the business with the customers’ expectation. Project management in an organization involves the application of the experience, skills, knowledge, methods and process in the project in order to ensure that the organization achieve its holistic goals and objectives. The project undertaken within an organization is normally undertaken in order to assist the management and the organization in achieving the pre-planned objectives in terms of benefits, outcomes or outputs. The project management might be used by the manager in the operational management in re-engineering the operational of the organization in the future. Given that project management is basically in specified areas in the organization, the manager would be in position to estimate the future performance of the organization in terms of estimating the cost and financial returns of the organization.
Quality Management
Quality management is the management and assembly of all activities within an organization to ensure that the products and services produced within the organization are of high quality standards. Quality assurance and control are the two major components which are used by various organization to ensure that the final consumer receive quality products and services. Quality assurance in quality management demands demand the organization to adopt systematic actions which shall provide enough confidence to the customers that the product, service of process to be used in manufacture and delivery will basically satisfy the quality requirements. Quality control necessitates the operational activities and techniques which are used in satisfaction of the quality requirement (Rouse, 2009). As a matter of fact, quality management is basically a strategic way of managing the organization in order to meet all the stakeholders’ expectations and needs effectively and efficiently while putting into consideration the ethical aspects. For a leader planning to use the quality management strategy in operational management, he or she will need to understand the following principles of quality management. The manager would need to understand the principles of: beneficial suppliers’ relationships, factual decision making approach, continual improvement, management system approach, the process approach, people involvement, leadership and customer focus on the organization.
References
Bobby, A. (2015) Strategic Capacity Planning for Products and Services. New York Publishers.
Lyia, Y. (2014). The role of budgeting in management planning and control. Oxford University Press.
Randolf, S. (2013). Importance of Forecasting in Supply Chain Management. Retrieved from: http://smallbusiness.chron.com/importance-forecasting-supply-chain-management-46181.html
Rouse, M. (2009) Supply chain management (SCM). Cambridge University Publishers.
Salter, G. (2010).Technology and Operations Management. Harvard University Press.
Waters, O. (2011) Organizations Total Quality management programs . New York Publishers.
