Henzer 10 Critical Decision Area for OM

10 Critical Decision areas of operation management

I. Goods and service design. According to Henzer (2004), design of goods and design defines much of the transformation process. The factors of cost, quality and human resources must be made during the stage. Operation management of product and services is also different because due to different characteristic and tangible / intangible feature.

II. Quality. Customer has a very high quality standard nowadays and operation management decision in quality must be clear and strict for its members to understand and comply. It must set a quality, standard and operating procedure to meet customers’ high expectation.

III. Process and capacity design. Manufacturing of physical products may have higher importance on process and capacity design than services operation. Operation management (product) should decide what process it, what type of technology and to what extent, human resources, quality and maintenance that determines its basic cost structure. Services operation decision on this area is much simpler and it can determine by customers who directly involved in the process. For example, customer will ask tailor to design specific fashion clothes. Capacity design issue is critical for services because it will try to reduce waiting time and avoid lost of sales due to insufficient capacity. For manufacturing capacity design is based on firms financial capability, forecast for future and market demand.

IV. Location can be an area for operation management to decide and with globalization of business, operation managers too must think global. For physical goods, location selection can be determined by pools of qualified human resources, technology, raw material, access to market and government policy. For services as it is direct to customers, the location is determined by market accessibility or near to customer as possible.

V. Layout design. Material flow, process selection technology used, capacity needs, workers needs, inventory requirement, and capital will influence the decision for layout design. For services such as hotels, beside capacity needs layout also will enhance its attributes and features to the customers.

VI. Human Resources and Job Design – Employees is the integral part in the total system design. Operation management must set a policy to set labor standards to ease transition of skills, improvement of knowledge, skills and abilities (KSA), build a balance work and life quality in an effective cost target. For services one extra area operation management should touch, which is customers relationship that they are dealing directly.

VII. Supply Chain Management – Decisions that have to take place of what to produce, what material to buy, from where, how is the cost and how is the delivery from supplier to the final end customers in on-time delivery and minimum cost possible. It is more critical in production of goods than services.

VIII. Inventory – Decisions on how and where the inventory level to keep long term customers satisfaction, suppliers, material availability for not to disrupt the production, human resources needed for this purpose and important the holding cost from financial perspective. Goods production are more concern because manufacturer may kept raw material, in progress work order and final goods while services is not critical as it is directly produce and consume simultaneously.

IX. Scheduling – Efficient way of allocation, control and management of materials, capital goods and human resources to efficiently produce the final goods from the input available. Schedules are more formal in goods production with short, medium and long term planning to accommodate customers demand. For services the demand is more direct and volatile and often concern on human resources and KSA availability to meet current customers needs.

X. Maintenance – Decision must be made regarding the desired level of reliability, stability and systems must be established by management to maintain that reliability and stability.

19 comments:

Chogchogo said...

it was a great help short and simple >_<

Sociology Dissertation said...

I also found your posts very interesting. In fact after reading.

Anonymous said...

this will help for my report in our class regarding my topic operations management. thanks to this! it will help a lot. :)

Anonymous said...

i think it's Heizer, not Henzer

Unknown said...

I was pinning away for such type of blogs, thanks for posting this for us.referral exchange

Anonymous said...

thanks! this will help me a lot :)

Unknown said...

Waooow!! Nice blog, this will be greatly helpful. Monument capital

Unknown said...

Useful information shared. Thanks for giving us nice info. Fantastic walk through. I appreciate this post.
inventory management marketing materials

Unknown said...

Students and researchers looking for neatly formatted dissertations benefit from the dissertation transcription solutions offered by professional transcription companies. ksa knowledge skills and abilities

Unknown said...

Feeling Gr8 to read your blog post, please share something about Change Leadership and Media Technologies

Media Technology Market Research

Unknown said...

Awesome work! That is quite appreciated. I hope you’ll get more success.
http://www.the100kfactory.com

Unknown said...

It's very helpful for my report but...can you give me a 1 example each?

Unknown said...

it is very useful but there should be at least one example for each .

make money from betting said...

Awesome work! That is quite appreciated. I hope you’ll get more success.
insurancerate.com

Profit Engine Bonus Increasing Your Affiliate Commissions said...

Not always happen like this

https://listacademyanik.com/100k-factory-revolution-review-bonus/

Unknown said...

thank you very much!
um i wanna ask, where was the sources taken from?

Unknown said...

The writer understand better the mind of people what they want to learn through their writing therefore this article is outstanding. Thanks!!!

how to get a business loan

Mark said...


Content marketing therefore is closely aligned with search engine marketing, often going hand in hand. But do not expect your new created content to immediately attract immense amount of new customers. You need to share your content — for instance, send it to influencers and those in your industry to read, and ask them to share as well. Content marketing is not always about creating content and sitting back and reaping any rewards — it is about raising your brand's awareness by demonstrating your knowledge and expertise in your business field. Using social media helps you here in sharing your content and combined with email marketing, can get your content out there. You will understand how to engage with customers across a wide range of social media platforms. We will also give you the techniques and tools to harness the opportunities provided by best practice social media marketing.

Simon Coulson is a highly successful internet entrepreneur - having generated more than £20 million in online sales across five separate businesses, using the power of the internet. Simplilearn is a great platform. The way the team has put the course together makes it so easy to comprehend. It's user-friendly and amazingly organized. The classes are interesting and fun, so well thought of and helpful. The trainers are well-versed knowledgeable. This certification is really going to benefit me in real life work. I never thought doing an online course would be this nice. The Simplilearn team are so helpful and always eager and ready to help you with any queries. They also provide course-related study material that one can really benefit from. All in all, I'd recommend it definitely.

Covers the A to Z of both intermediate and advanced digital marketing concepts. I, unsatisfied by the condition of the then existing institutes, then started Digital Technology Institute and made it a point to have each student of my Institute, market ready by the time they completed their course. The journey began and till date Digital Technology has trained over 2000+ professionals who range from the age groups of the youth in their teens to people even in their sixties. The faculty at DTI makes sure of this that everyone gets to be the best of them, when graduating from here. The students are trained in a way that they when leaving, are confident about themselves and sure about every module that they have learnt here. Basically, you use strategies like search engine optimization to pull people into the top of your funnel (awareness). Then email marketing, conversion rate optimization, etc to generate convert those people to leads (interest, desire). And finally, paid ads, retargeting, and so forth to convert leads into customers (action).
https://www.reviewengin.com/

anonymous said...

Most likely, that there are such a large number of occupations for the general population who did the MBA and they are searching for our administration by visit the site to deal with their work. You pass on the essential message to such individuals.http://www.ksaexamples.info/knowledge-skills-and-abilities-sample website.