The operations management is the process of managing activities that produces goods and services in order to create value to the customer. With recent development the operations management has changed drastically and major changes in operations management are sumerized below:
The geographical limitation of the market has expanded from focusing on local markets to focus on global markets. This has occurred due to the rapid development in communication, globalization and increased mobility of resources among countries. As a result countries focus on producing goods and services at a global scale rather than limiting themselves to geographical boundaries.
In past production was carried out in a mass production method where there were batches of goods produced and sold at mass scale generating economies of scale. In the modern operations management era batch production focus has shifted towards Just In Time production where goods and services are produced upon the receipt of order with customizations. It has reduced the inventory cost drastically.
In past the purchasing activities were carried out based on the lowest bid where organizations chose the supplier who provides the lowest bid for a particular order. This was more short term focused and quality and reliability was ignored. In modern days the low bid purchasing has shifted to supply chain partnerships where companies consider suppliers as a part of their value chain and build long lasting relationships with suppliers rather than focusing on short terms gains with low prices.
In past the product life cycle was lengthy and when a product was introduced it stayed in the market for a long time. But with the rapid expansion of technology the product life cycle has become short where every product is replaced by a new product very fast. Due to this reason companies are not able to have lengthy product development processes and the forced to introduce rapid development of new product while encouraging innovation.
In past there was mass production where production was made in large scale with standardized production to gain economies of scale. But with increased flexibility and competition now companies are forced to customize their products based on customer requirement and techniques such as mass customization is used in doing so.
In past employees were treated as just another input to the production process where they were treated like machines. There was specialization and workers concerns were ignored. With the development of Human Resource Management now firms focus on employee empowerment where they treat employees as resources that bring competitive edge to the firm. In this concept the worker’c concerns are heard and organizations make arrangements for their welfare and mental/physical fitness.
In past the production was focused on obtaining resources at lowest possible cost and manufacturing at the lowest cost ignoring the damage made to the environment. Due to the initiatives by environment pressure groups companies are moving towards green production and green marketing where they carry out business activities without damaging the environment by not destroying natural resources, taking care of forests and wild life and so on.