Operations Management Concepts Research Articles

Implementation of Operational Management at the Manufacturing Company (Pt Nippon Indosari Corpindo, Tbk) Sari Roti

Operational management is very important for all types of industries, one of which is manufacturing. Manufacturing companies are concerned with production processes on a large scale that use equipment and machinery to manage raw materials into finished goods. PT Nippon Indosari Corpindo Tbk “SARI ROTI "is one of the leading bread manufacturing companies in Indonesia. This Journal discusses how SARI ROTI applies operations management concepts to achieve competitive advantage and meet growing market demand. Based on these objectives, researchers use qualitative research with qualitative analysis methods in which research is conducted by analyzing data using theoretical foundations as the basis of analysis. The data analyzed is secondary data, which is data that comes from existing sources and is not self-processed data The results showed that this company is a company that successfully runs the overall operations management concept, so that the company is able to produce quality products and ensure the cleanliness of all its products, as well as efficient in terms of the production process and distribution of products produced with a wide marketing area coverage.

Analysis Of Corporate Operational Performance: Interpretive Issues And Quantitative Determinations

Operational management is not a unanimously accepted concept at the international doctrinal level. If, for example, we compare the tax laws of the various nations and the international accounting standards or national accounting standards of the different countries, we can see that the concept of operational management differs depending on where we find this notion. Since operational management is essential in delving into a company's profitability, it is first necessary to identify an operating management concept that is useful for data analysis to be an efficient and effective tool for identifying the most appropriate steps for maximising company profitability. The first step in this process is to identify an operational management concept that does not change depending on the area in which we are acting. Thus, the same concept must apply in the profitability and financial spheres, should this concept be used to analyse a company's financial situation. And it is also necessary for the same concept to be present in the area of the study of monetary flows because if the concept of operational management or other concepts that are used to study this type of activity change depending on the sphere in which we are acting, the analysis will be confusing and will lead to an incorrect interpretation of the results obtained. A second very relevant element to be noted is that the in-depth analysis of operations is often done incorrectly by comparing ROA with the ROI trend and thus interpreting the trend of active financial management and asset management residually. If this is done this way, the analysis results can be misleading. It is necessary to conduct a more in-depth analysis that considers other variables, which will discuss in more detail in this article.

Operations management concepts applied to offsite construction

The Architecture Engineering and Construction (AEC) industry has been criticized for low productivity, lack of innovations, damage to the environment, lack of improvement. Several innovations have emerged to address these problems and, in this paper, the relationship between operations management (OM) and offsite construction will be discussed. The purpose of this paper is to present a proposal for the application of OM concepts in offsite construction. A research method based on the assumption that construction processes can be analyzed as production systems will be used. The resulting proposal consists of the exploration of potential applications, benefits, and barriers of OM in offsite construction based on the current experience of OM in manufacturing processes. A thorough discussion about the implications of this proposal in a project and supply chain levels are presented. The most important conclusions were related to the need for applying OM concepts in offsite construction projects and the need for more research in this direction to prove the proposed proposal.

DEVELOPMENT OF EARLY PREVENTION METHODS AND RESPONSE TO CRISIS OF THE ENTERPRISE

Analysis of conceptual approaches to operational management of the enterprise in market competition and depending on the characteristics and stages of development determines that it is necessary to carefully perform all necessary management functions, attention to ensuring the achievements of forecasts, calculations using appropriate management technologies. The purpose of the study is to prove the need for the formation and implementation of early warning and response in the enterprise as one of the ways to manage change in the enterprise. The set tasks relate to determining the place and role of the early warning and response system in the enterprise; development of methodological approaches to the introduction of an early warning system to identify signs of crisis; creation of a system of preventive response at the enterprise. The methodology is determined by the applied system approach, methods analysis and synthesis; a schematic sequence of operational response measures and their information support has been developed. Results. Using the results of research by domestic and foreign scientists, the development of a rapid response mechanism was continued, as a basis for the formation of principles, methods and tools for managing "weak signals" on the danger or signs of crisis. It is noted that crises are eliminated both in the normal mode of neutralizing destabilizing factors, and in preventive, when preventing the emergence of negatively affecting processes. The study is based on the distinction between two approaches: the first is related to the identification of factors that cause the crisis; the second – with tracking changes, "weak signals", signs of uncertainty of future development. Consideration of existing and development of methodological approaches to building the concept of operational management "on weak signals" was based on the study of the characteristic symptoms of the crisis and the establishment of relationships between risks and crises. The innovative scientific and theoretical essence of operational management tools "on weak signals" of enterprises is stated. Conclusions. It all depends on timely and correct management decisions, and if the negative impact of external threats to the enterprise can not always be neutralized, then ensuring a crisis-free existence is entirely up to management and depends on timely response, ability to use methodological approaches, management technologies to prevent certain trends, to prevent signs and manifestations of the crisis in the enterprise.

Unveiling undergraduate production engineering students' comprehension of process flow measures

Paper aims This study analyzes the comprehension of production engineering students about the influence of some key variables on the process performance measures in a service process. Originality This paper points out the need for educators to re-evaluate their approaches to teaching the Operations Management (OM) principles related to process flow measures. Research method This study used scenario-based role-playing experiments with 2×2×2 between-subject factorial design with three independent variables (variability of activities, capacity utilization, and resource pooling) and four dependent variables related to key internal process performance measures (Flow Time, Overall Quality of service, Quality of service employees, and Queue Size). The sample was composed of 178 undergraduate production engineering students from a large university in Brazil from various institution units. Main findings These results show that students perceived the use of resource pooling as an impactful practice. However, the students did not correctly identify the effects of increasing resource utilization and the variability on flow time and queue size when activities are pooled. Implications for theory and practice The teaching of basic concepts of OM requires the support of computational tools. Undergraduate courses that contemplate subjects in the field of OM should work more intensely on simulation-based learning.

Optimization of supply chain finance based on Stackelberg model

In recent years, the relationship between the concepts of operations management and finance management has been an attractive area of research among researchers. One of the emerging areas at the beginning of the 21st century in the literature of operations and supply chain management is the topic of supply chain finance (SCF). SCF is a new concept that provides efficient financing of the supply chain, where all parties can balance the working capital and improve cash flow at a reduced cost by utilizing the buyer's or other parties' credit rating. Hence, in this study, an approach to optimize financing based on the Stackelberg model in a three-level supply chain, considering the circumstances in which the supplier is financially constrained for fulfillment the buyer's order and funded by the bank as another member of the supply chain based on the purchase order financing (POF) is discussed. For this purpose, a nonlinear mathematical programming model has been developed to maximize the payoff function of the partners.

A lean view of lean

A lean view of lean

ТЕОРЕТИКО-МЕТОДИЧНІ ЗАСАДИ УПРАВЛІННЯ ОПЕРАЦІЙНОЮ СИСТЕМОЮ ПІДПРИЄМСТВА

In modern conditions of market management, there is a constant increase in competition among producers of goods and services for the best conditions for production and marketing of products. And more competitive enterprises are those whose products and services meet the needs of consumers and their expectations to a greater extent. The competitiveness of products, first of all, depends on the effective management of the operating system of the enterprise. Therefore, the study of enterprise operating system management becomes relevant in the modern competitive environment and market conditions of management. Effective management of the operating system will provide the company with opportunities to improve product quality, reduce its cost, increase labor productivity and, as a result, strengthen its competitors ' position in the market. An example of effective management of the operating system of enterprises is one of the most developed countries in the world - Japan, which today is ahead of the United States in terms of quality, competitiveness and quantity of manufactured products in most industrial sectors. The merit of this is primarily effective operational management. Operational management is one of the three fundamental functions of an organization, the main goal of which is the production of consumer products. Its main feature is the purposeful solution of the main production tasks that are strategically necessary for the organization. In the article the essence of the concepts of operation, enterprise operating system, and operating system management is highlighted. The article systematizes the views of scientists on the concepts of operation, enterprise operating system and operating system management. Various scientific and theoretical views on the concept of operational management are studied. Various scientific methods of managing the enterprise's operating system in accordance with the scope of use are described. Criteria for evaluating the effectiveness of operating system management are defined. Operating systems are classified into functional blocks. The definition of enterprise operating system management as a constant continuous process of planning, organizing and controlling the transformation of material resources into a final product or service aimed at meeting the needs of the end user is proposed.

Incorporating the academic performance of undergraduate students into the teaching material of an operations management course

In this research, we open an operations management window over the 16-year performance data of a state-funded teaching-focused business-school (SFTFBS) on graduation rates and time-to-degrees. We implement operations management concepts and tools such as systems thinking, operations strategy, process flow analysis, predictive analytics, inventory management, and descriptive statistics to analyse the time-to-degree problem to find potential improving solutions. Through this process, we have learned that the students' interest and classroom interactions are increased when the teaching material is closer to the real-life of the students. Accordingly, the results of this study are brought into the classroom. They are embedded in the teaching material as real-life problems and assignments to teach and learn operations management. We have observed that this approach has a positive impact on the mental presence and intellectual engagement of students inside the classrooms.

Application of Simulation in Healthcare Service Operations

The health system is intricate due to its dynamic nature and critical service requirements. The involvement of multiple layers of health service providers quadrupled this complexity and results in a complicated operating environment. Simulation is often considered an apt technique to model and study complex systems in the literature. The popularity of simulation in the healthcare domain had only accelerated with time and resulted in a large number of articles intended to solve myriad healthcare problems. This article analyzes healthcare simulation literature of the past decade (2007--2016) that addresses operations management issues in various healthcare service delivery levels and categorizes the literature accordingly. In the next step, we attempt to assimilate the entire literature to capture specific health issues addressed, operations management concepts applied, and simulation methods used, and identify major research gaps. Finally, we develop the research agenda from dividing these gaps into the contextual, conceptual, and methodological genre that is consistent with the previous state-of-the-art literature reviews in operations management. Furthermore, this article demonstrates other minute aspects such as “sources of funding” and “tools used for the research” to maintain coherence with the previous reviews in the healthcare simulation. The objective of this work is twofold: to connect the knowledge continuum to the present, and to provide potential research directions for future academicians.

Qualitative Analysis of Maintenance and Operational Management at Abdul Muis Technical Office Building

Building operational management has consistently become a requirement to fulfill, especially for buildings that are enabled for the public interest. The concept of operational management, especially in the maintenance of poor buildings can cause various functions of building facilities will be decreasing and affect the quality and comfort of the building, therefore it is very important for building owners/building users to know the understanding and process of building operational management. This research aims to study about the understanding of operational management and based on research results there are 4 stages of process in operational management, namely review design, planning, organizing, movement and control.

Theoretical approaches to the definition of the concept of operational management

The article considers the author’s interpretations regarding the definition of the essence of operational management concept. The purpose of article is to systematize the existing definitions of «operational management» and clarify the essence of this concept. The research methods of comparison, grouping, induction and deduction, analysis and synthesis were used in the research. According to the study results, different opinions of researchers on the relationship between the concepts of operational and production management have been studied and found that these concepts are not interchangeable. Based on the analysis of the author’s interpretations of the essence of operational management, three scientific approaches are identified, which were presented in the scientific developments of a number of researchers, namely: an emphasis on the production systems management, an emphasis on operations management and an emphasis on resource allocation. The relationship between key concepts of operational management such as «operation», «operational strategy», «operating system», «operational function» is established. It was revealed that the operation is the primary indivisible link of the operating system, and the operational function should be considered as a set of operations, the result of which is the manufacture of goods or provision of services, supplied by the enterprise to the external environment. It is determined that operational decisions related to management concern the formation of operational strategy, as well as the development and ensuring the functioning of the operating system. According to the results of definitions systematization and analysis of the basic concepts of operational management, the interpretation of its essence is generalized. It is proposed to consider the operational management as an activity of operations management, which is the basis of the operating system of any enterprise and provides for its provision of the necessary resources and transform them into goods or services to achieve established corporate goals.

Reducing channel inefficiency in product line design

It is well known that the optimal product line design in a manufacturer-retailer distribution channel is different from the optimal design achieved under a centralized channel. Channel inefficiencies are observed due to the potential misalignment of the manufacturer's and the retailer's segment targeting strategies. We show that this result in the literature is based on a crucial assumption that the product is comprised of only one attribute, and that one segment's preference structure dominates the other segment's preference structure. In this paper, we generalize the problem by considering a multiple-attribute product line design problem that includes the case of a non-dominating preference structure. Interestingly, we show that channel inefficiencies may become an issue in this non-dominating preference structure only when the market segments are significantly different in the overall part worth across the product attributes. We also show the potential of two important operations management concepts firms can use as an attempt to improve channel efficiency. Contrary to the predominant result in the literature on commonality in the centralized channel, we show that offering commonality in the decentralized channel may actually improve channel efficiency even in the absence of cost saving. Furthermore, firms can benefit from the implementation of decentralized product design where the retailer also takes part in designing product attributes. The overall part worth difference between the two segments appears to have a strong influence on the change in channel profits. These findings give rise to previously unrecognized opportunities for firms to redesign their product lines.

Study Phase of Operational Management Process X Building

Building operational management has consistently become a requirement to fulfill, especially for buildings that are enabled for the public interest. The concept of operational management especially in the maintenance of poor buildings can cause a variety of functions building facilities will be increasingly decreased and affect the quality and comfort of the building, hence it is very important to the owner of the building/Building users know the understanding and process of building operational management. This research aims to study the understanding of operational management and based on research results there are 4 stages of the process in operational management, namely review design, planning, organizing, movement, and Control.

Developing in engineering students a critical analysis about sustainability in productive systems

PurposeThe Mechanical Engineering course at the University of Campinas is composed of different disciplines in the areas of materials, mechanical design, manufacturing (production and manufacturing), computational systems, thermal and fluids. In the manufacturing area, in particular, there is a discipline entitled Productive Systems whose main objective is to offer to the student a global vision about operations management. In the field of operations management, sustainability is gaining more and more importance; thus, it is important to develop in the students a critical sense about social and environmental aspects. Thus, this paper aims to present the main initiatives developed in the discipline to promote sustainability in engineering students.Design/methodology/approachSince 2015, the professors responsible for the Productive Systems discipline, assisted by post-graduate students and professors from other universities, have begun to redesign the discipline, including debates, lectures, projects and other initiatives to provide a critical view concerning the traditional concepts taught. The discipline has been performed three times with this new conception. The methodology to structure this research was literature review, documental analyses of the discipline records and meetings with professors that participated in the initiatives. An Action Research approach was performed by two professors and a graduate student. The authors of this paper also compared the results with those obtained by initiatives performed at Chalmers University of Technology (Sweden).FindingsThis study allowed to reinforce some results from initiatives performed at Chalmers University of Technology (Sweden); however, some differences were identified. For example, similar to the initiatives mentioned, the professors of University of Campinas had problems with didactic books, as they loosely integrate the basic operations management concepts with sustainable development fundamentals. On the other hand, debates related to social sustainability were considered positive from the point of view of the professors and students, differing from initiatives performed at Chalmers University of Technology.Research limitations/implicationsResults come from one field study (University of Campinas) when professors of the Mechanical Engineering course try to integrate operations management concepts and sustainable development. Different results may be observed by other higher education institutions.Practical implicationsThe authors of this paper believe that the diffusion of these initiatives can stimulate other professors and researchers in the field to broaden the academic debate about the insertion of sustainability into engineering courses.Originality/valueThere are few papers presenting didactic experiences and empirical results about the integration of operations management concepts and sustainable development. Results of this paper reinforce some good practices and they also present other ones, in a way that extend the debate about educational engineering.

The Strategic Framework of Cost Management for Production Competitiveness: World Experience

Purpose of the article is to analyze the concept of production competitiveness and develop framework of cost management. A variety of cost management techniques requires the identification of their relationship with the requirements of operations management. Identified seven key concepts of operations management, analyzed their essence, information requirements. Systematized cost management techniques accordance with modern concepts of operations management such as: standart-costing, break-even analysis, direct-costing, life-cycle costing, target costing, value analysis, functional analysis, activity-based costing, sensitivity analysis, JIT-costing, kaizen costing, activity-based cost management, value-chain analysis. The aim of the article is the establishment relevance of costing methods with the key concepts of operations management companies.

How mode of delivery affects comprehension of an operations management simulation

PurposeThis study aims to understand how mode of delivery, online versus face-to-face, affects comprehension when teaching operations management concepts via a simulation. Conceptually, the aim is to identify factors that influence the students’ ability to learn and retain new concepts.Design/methodology/approachLeveraging Littlefield Technologies’ simulation, the study investigates how team interaction, team leadership, instructor’s guidance, simulation’s ease of use and previous software experience affects comprehension for both online and face-to-face teaching environments. Survey data were gathered from 514 undergraduate students. The data were then analyzed using structural equation modeling.FindingsFor the face-to-face population, this study found that team interaction, previous software experience, instructor’s guidance and simulation’s ease of use affected student comprehension. This differed from the online population who were only affected by the simulation’s ease of use and instructor’s guidance.Originality/valueUnderstanding how the mode of delivery affects comprehension is important as educators develop new online teaching techniques and experiment with innovative technologies like simulation. As demand for online education grows, many instructors find they need to refine their methods to ensure students comprehend the concepts being taught regardless of modality.

Investicijų į įmonės veiklos rizikos valdymą vertinimas

Rinkos ekonomikos sąlygomis veikiančių įmonių veikla yra dinamiška, o tai lemia prognozuojamų rezultatų neužtikrintumą, todėl neišvengiamai susiduriama su veiklos rizika. Siekiant užtikrinti įmonės veiklos plėtrą, sėkmę ir pelningumą, būtina sprendimų priėmimą grįsti rizikos vertinimu, todėl poreikis valdyti veiklos riziką išauga, o kartu išauga ir investicijų į įmonės veiklos rizikos valdymą svarba. Dėl šios priežasties, siekiant išanalizuoti ir suvokti įmonės veiklos rizikos vertinimo ir valdymo procesus bei jų aktualumą, straipsnyje teoriniu aspektu nagrinėjama veiklos rizikos samprata ir jos vertinimo svarba, analizuojama veiklos rizikos valdymo koncepcija ir pateikiama trumpa rizikos valdymo metodika, kuri sieja kokybinius įmonės veiklos rizikos nustatymo ir vertinimo metodus bei rizikos valdymo, priežiūros ir kontrolės metodikas. Praktinėje dalyje pasirinktos įmonės pavyzdžiu analizuojama ir nustatoma įmonės veiklos rizikos valdymo aplinka, nagrinėjami rizikos atsiradimą lemiantys veiksniai, siūlomos rizikos valdymo priemonės ir atliekamas investicijų į konkrečios įmonės veiklos rizikos valdymą kokybinis vertinimas. Kadangi tiriant įmonės veiklos riziką identifikuojami ir vertinami nuostoliai, kurie galėtų būti patirti, jei rizika nepasiteisintų, atliktas tyrimas leis verslo atstovams aiškiau suprasti investicijų į įmonės veiklos rizikos valdymą naudą ir svarbą.

A Literature Review on Production Scheduling with the Drum-Buffer-Rope Technique

Minimizing production cost is a key element of the industry. To use resources efficiently, various concepts of operations management have been developed since the Industrial Revolution such as just in time, total quality control or lean manufacturing. Manufacturing shops – classified broadly as job, batch or flow shop according to process type, standardization level or quantity of production – continue to evolve by applying these various improvement approaches. Synchronous manufacturing and theory of constraints attempt to improve production processes by analyzing operational measures. They emphasize the importance of work in process levels and amend to have short term planning processes organized in accordance with the system constraints. This review tries to highlight the important connections between the drum-buffer-rope scheduling, single piece flow and operations-finance interface.

Making the business process outsourcing decision: why distance matters

Purpose The purpose of this paper is to develop a framework that incorporates both firm- and process-level factors for understanding location distance choice in the business process outsourcing (BPO) decision. Design/methodology/approach The research involved undertaking in-depth case study analysis of a number of BPO decisions in six German companies, and employing transaction cost economics (TCE) and the resource-based view (RBV) as a theoretical basis. Findings The findings have shown that existing literature in the operations management (OM) literature does not provide a complete understanding of the complexities of location distance choice in the BPO decision. This decision requires an understanding of a range of factors at both the firm- and process-level. The findings here enhance the understanding of how these factors interact to influence the potential distance options. Practical implications The findings have shown how organisations can influence the factors that affect the location distance choice including modularising business processes, developing outsourcing capabilities, and supplementing internal skills in areas such as cultural management and performance monitoring. Originality/value This is one of the first studies in the OM field to analyse how organisations make the decision in relation to local, nearshore, and offshore location distance options. The paper has highlighted the importance of OM concepts such as performance management and continuous improvement to this phenomenon, and the paper has offered a number of important areas for further research.