15 Feb Make Critical Decisions Using These 10 Operations Management Areas
The manufacturing industry is going through a shift as many companies embrace a digital transformation. Luckily, powerful software, like Salesforce, and ERP solutions, such as Rootstock, make it easier for companies to plan, allocate resources, and operate to meet changing business needs.
This isn’t the first time the industry has had to adapt to changes. Back in 2008 the financial crisis forced manufacturing companies to adjust their systems and operations to be more flexible. Ford Motor Company is credited with reorganizing 10 strategic operations areas, which have also been adopted by other larger companies as a guide to operations management.
Here are the 10 strategic operations areas any sized company can use to analyze operations.
10 Critical Decisions of Operations Management
- Goods and services: This includes looking for ways to implement consistency in costs, quality, and resources across all business divisions.
- Quality Management: Be clear on the customer’s demands and then meet those expectations. Use market research to determine customer needs and batch quality assurance testing on products and services in production.
- Process and Capacity Design: Design strategies which support all production goals including technology and resources. A value stream map can help determine what processes are necessary and how to keep them running efficiently.
- Location: In developing a location strategy consider supply chain and how the location will receive supplies, the movement of goods and services internally and to customers, and the role of marketing and public relations in the location choice.
- Layout Design and Strategy: Consider the placement of desks, workstations, and how materials are delivered and used.
- Human Resources and Job Design: Implement continuous improvement programs with regular reviews, provide continuous training for employees, and institute employee satisfaction programs to achieve success in this area.
- Supply Chain Management: Determine the best strategies to streamline, be cost effective, and to develop trusted partners.
- Inventory: Different markets mean different challenges when it comes to inventory but all need to strategize and plan their inventory control. Weather, supply shortages, and labor all influence how an organization maintains its inventory.
- Scheduling: Consider both production and people. Ask questions such as how much product is required to be produced for the customer in the required time? How many people and how many machines are required to do the job effectively and efficiently? This differs among industries and business departments. For example, emergency rooms need to maintain different schedules than a hospital’s corporate office.
- Maintenance: This includes maintaining people and machines, as well as, process. What do you need to do to maintain quality and keep resources reliable and stable?
Enhance Operations Management with Rootstock ERP
Rootstock is the next-generation, cloud ERP solution that fully leverages the Salesforce platform. This powerful platform builds off of your existing products, sales and customer data, business objectives and business rules in Salesforce to provide a complete end-to-end view of your manufacturing operations, inventories, supply chain, and finances.