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Effects of Operation Management on a Production System and Company Performance:
Operation management is the process in the organization, in this organization transforms the inputs in the outputs or the final products. Inputs are labor, capital, material, energy, and outputs are service and goods these consumed by the public. When we talk about the services these are the intangible products and goods are the tangible products.
There are so many things that are including in the service sector like transpiration, utilities, lodging, entertainment, legal service, healthcare, education, banking finance, etc. Goods are the article of trade that is manufacturing in the specific terms. The main work of operation is to employ people, builds the facility, and purchased the required material for providing the services.
The working capacity of the people increased if people are able to produce greater output. In the organization, people find the so many facilities that specially developed for the working environment of the firms.
The effect of the operation management on the production system and company performance is as follows.
1. Maintaining the quality: In the maintaining of quality, which includes all the tools that are used by the company to control the quality in the firm or organization and that helps the organization to meet the customers’ expectations. In the company measure of quality, these are the main things that used for the managing the quality in the organization.
2. Approaches to forecasting: There is two general approach of forecasting and these are qualitative and the quantitative. Qualitative forecasting is the subjective forecasting and quantitative forecasting involves the historical data of the organization. The first type that is judgemental forecast is qualitative, and other two are quantitative.
3. Increase in performance: after applying the operation management tools in the organization. The company is able to increase the performance because in the every task, there is an operation technique that helps to increase the performance.