Production Or Operations
Production/operational functions comprise business activities that translate the inputs into goods or services. It deals with inputs, transformation of things, and the outputs, which differ in all individual industries and services.
The operation in the manufacturing companies diverts the inputs, like raw materials, capital, labor, machines, and other facilities, into finished goods and services.
Roger Schroeder an expert of operation and production categories it into five functional areas including process, capacity, inventory, workforce, and quality management.
The operational activities usually represent a distinct part of the organization's capital and human assets. The major cost of the organization comprises expenditures of operational activities because the operation has enormous value in the company, this is an act like to perform the function of a weapon in war.
The enterprise development based on five functions of production/operation which could measure through strengths and weaknesses, and its failure or success would gauge through the said function of the operation. The capacity building of the worker on cross-training plays a very vital role, because it earns the faster response of changing markets. The cross-training lead the workers to perform their duties efficiently, maintain quality, productivity, and got job satisfaction.
The world is moving towards technology-based production/Operations, which is as attractive as sites for the production facilities in Southeast Asia, like Singapore. As Singapore has 4.4 million total population and has an economy based on information technology changed. The information technology program has started in Singapore, where the unique and well-reputed program of computer training is on a large scale for older peoples, means 26 plus years of age, while the small kids have trained on computer right from the school level. All the Govt services have fully computerized, the Judiciary system of Singapore is highly appreciable, which is supportive for the businessmen. Singapore has covered its market through the world investors around 70% in the manufacturing sector.
Singapore has the largest and busiest seaport in the world regarding container traffic, followed by Hong Kong, Shanghai, Loss Angelos, Bosan(South Korea), Rotterdam, Hamberg, and Tokyo. It is bigger than five-times from the Newyork City's seaport.
Certain organizations have not taken sufficient amounts of capabilities and limitations functions of production/ operations during their strategy formulation, which is the major concern of the drawbacks, to take the developmental peak. The experts are showing their concern in the United States, in the corporate sector, as they have ignored these functions in strategy planning, which has badly affected the economy of the United States.
Production/Operations Audit Checklist
The following questions should consider in the examination of an operation/production audit checklist
1. Do the raw materials, parts, and subassemblies supplies seen reliability and reasonability?
2. Does the equipment, facilities, offices, and machinery in an excellent condition?
3. Does the company adopted effective policies and procedures for inventory control?
4. Does the company adopted the effective quality control procedures and policies?
5. Does the company's resources, facilities, and markets strategically located?
6. Are the organization have technological competencies?
Research and Development
Research and Development is the most effective part of production/ operation because it stands on a fifth major area of internal production/ operation of the companies, which should take into consideration because most of the well-reputed companies depend on R&D section of the operation, which is the backbone for these companies. The product promotion companies are taking the top priority, to have a solid R&D section. These companies continue to conduct the examinations of the R&D section, to find out the gaps of strengths and weaknesses. These companies release an enormous investment in the research and development section because they know the value of this investment and its fruits in the competitive market.
The R&D section explores the new product, reduce the expenditures, and improve the quality, changed the manufacturing process, which is the competitive advantage, and also the increased asset promotion of the companies concerned.
As, I have worked as an R&D supervisor in a leather company for four extensive years, where we have found several mistakes and myths about the usage of the chemical in the tanning department called beam house, and Dyeing department, they have fixed time schedule for the sulphuric acid usage in process, which has prohibited to stop before 150 minutes, because the notion penetrated in the professionals of the said area, that if we will not run it for the desired time, the chrome penetration will not through, which was false, because we have practiced it for just 30 minutes and the excellent penetration has recorded than 150 minutes, we have noticed that, we will save 120 minutes running time of drum, which will further save the electric expenditure and the valuable time. This provides us the excellent penetration of Chrome as compared to the old-timers, which lead to reduce the need for Dye for coloring. As the expenditures reduce, the per foot expenses reduce, as the cost expenditures reduce that lead to reduce the price also, so the competitor has beaten by our company on this stage, which was the fruits of R&D.
- All the sections of production and operation should concentrate on research ways because it will prevail over the saving for the country, and for the company concerned, and also will enhance the export because of its less manufacturing cost with quality assurance and less price.
- The research and development will show the gaps to be a bridge to stop the drainage of resources from the company concerned, which will further make the company owner richer.
Great bro, R&D
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