MG202- Semester 1, 2020

Assignment 1
Operations Management

GROUP MEMBERS
S11161027- Sweta Shivani Chand
S11173092 – Nileshni Devi
S11123725 – Zakia Zaisha Ali
S11076441 – Pratishna Nand
Introduction
Operation Management refers to “the administration of business practices to create the highest
level of efficiency possible within the organization”, [ CITATION Wil19 \l 1033 ]. Simply, operation
management consist of using resource from staffs, equipment, materials and technology. The
operation management controls several tactical issues such as maintaining the size of industrial
plants, maintaining the structure of information technology network, and control project
management methods. On other hand, operation issues includes management of inventory levels
such as work in process levels or raw materials usage, controlling the quality, handling of
materials, and lastly maintenance of policies. This write up is based on Strategic Management
and how it contributes towards Operations Management, hence examples will be also provided
for each theory.
Scientific management
To being with, Scientific Management theory is well-defined as “improving the organizations
efficiency or performance in completing the task by utilizing scientific, engineering, and
mathematical analysis”, [CITATION Sha201 \l 1033 ]. Mainly the scientific management theory
looks at efficiency of every individuals in the organization. The other name for Scientific
Management theory is “Classic Management Theory”, this theory was introduced by Fredrick
Taylor. From the beginning the organizations were concerned on how to achieve industrial unity
between labor and capital and ways to improve the efficiency of work performance. Fredrick
Taylor than formulated Scientific Management Theory to conserve industrial behavior.
According to Taylor, the principle interest for scientific management theory is simply to make
things effective and efficient in an organization, also to create a better industrial climate or
relation between labors and capital for better performance. Generally scientific management
refers to analyzing work flows in improving economic efficiency mainly to labor productivity.
For example, in large organizations or factories such as FMF and Bakery the scientific
management, engineering, and mathematical analysis are being used for their productivity. By
using these three components the organizations are being able to make their performance better
and way more efficient. Basically, the theory of Taylor is allowing the organizations to reduce
complex work and improving efficiency.
Moreover, scientific management plays a very important role in any organization weather it’s a
small or large organization. The scientific management theory has very much contributed
towards operation management. Firstly, one of the greatest contributions towards operation
management is to increase productivity. By observing at the activities of employees the scientific
management has been discovered the ways to make each worker more efficient. Simply, the
study of every workers efforts and performance, and analyzed work operations, the scientific
management looks at improving efforts of everyone in the organization so that profitability could
increase and try its best to make organization compete in global market place. Secondly, division
of work is another major contribution of scientific management theory towards operation
management. Diving jobs amongst workers produces great results and also leads to
standardization. For example, nowadays the project management process are being used by many
companies to manage big tasks. Basically, the labor and capital are working together to complete
their projects, also “the supervisor benefits from the scientific management through systematic
performance management process used by todays organizations”, [ CITATION Ker19 \l 1033 ] .
Lastly, the total quality is also one of the major contributions towards the operation management.
As scientific management looks at improving the efficiency of work performers and on other
hand it also looks at the quality of work products. Scientific management basically talks about
seeking better ways to improve quality. For example, in Japan the Japanese management used
scientific management theory to improve their quality movement, by using these theory the
greatest improvement on work quality, performance quality and product quality has been shown
in their organizations. Under scientific management theory the use of quality improvement
techniques has contributed towards operation management very well.
weakness of Scientific Management:
From Employer’s View:
 High cost.
 Unsuitable for small firms.
 Response from the workers.

a. High cost- for e.g. the noodle factory- have high cost of maintaining old machines,
for instance when machines break down it takes a lot of cost in repairing to get
finished goods.

b. Unsuitable for small firms- Scientific management involves high expenses since
small firms can’t afford it. For e.g. Eddy’s store in USP- it’s just a small business
with the owner operating with just a few helpers. It has less capital to operate with
and also have less profit thus Scientific Management is not recommended for such
small companies.

c. Response from the workers- the firms will operate favorably only if the workers
contribute. So that at the end of the day the workers achieve the desired results for
e.g. in a firm the staffs are given specific tasks to complete on a day, the workers
contribute fully- the company can achieve its desired results with no difficulty.
From Employees View:
 Unfairness.
 Creation of unemployment.
 Speeding up of workers.

a. Unfairness- unfair to workers, e.g. the profits that we get out of increased efficiency does
not go to the workers but in fact goes to the employer.
b. Creation of Unemployment- The companies create unemployment since bringing of
machinery which replaces laborer’s, e.g. Security guards being replaced by 360-degree
cameras- whereby guards work with breaks to guard a full area by themselves but
cameras do that non- stop.
c. Speeding up of workers-will in general accelerate laborers not thought of their
wellbeing and prosperity. Accelerating of laborers without auxiliary changes in the
 association can prompt higher output however lead to psychological well-being of
specialist. For e.g. the workers do their own work (following their JD (Job Description)
on top of that they are filled up with extra duties being carried out thus are much stressed
and it affects their health. This in turn might affect the company’s profit as workers turn
to fall sick and also the workers speed of doing their work also decreases.

2. Production- the process of making raw materials into finished goods or products. Also refer
to the goods being produced.
Productivity- A measure of proficiency of a person or machine in turning inputs into outputs. It
is computed by dividing average output per period by the total cost incurred or resources.
The difference between production and productivity, is that the level of productivity in the
production of goods and services, determines the profit, efficiency and the performance. Which
would simply mean that the greater the productivity of the firm the greater will be the producing
capacity. It also explains on the relationship between the input and the output in the production
processes. Another difference can be said that in simple words it would mean to attain the
highest possible output, while using a smaller number of resources. Production is meant to be the
amount of output, while on other hand Productivity is the output generated from the resources
used by the business.

Productivity
The production of merchandise and enterprises requires changing assets into merchandise and
ventures. The more effectively we roll out this improvement, the more beneficial we are, and the
more worth is added to the great or administration gave. Efficiency is the proportion of yields
(products and ventures) isolated by inputs (assets, for example, work and capital). Improving
productivity implies improving effectiveness
Example of calculating productivity
A business produced $60000 worth of chairs in 1400 hours. To calculate the labour productivity
Output
Productivity =
Input
$ 60000
=
1500labour hours
=$40 per labour hour
It is likewise imperative to take note of that productivity, is also a significant concern, isn't the
main indicator of individual or organizational performance. Productivity connects with different
parts of worker execution, money related controls, advancement, and serious viability—any of
which can prompt hierarchical disappointment.
When calculating productivity, it helps facilitate planning and control: Productivity measurement
provides information on costs, time, output rate, and resource usage to allow decision making
with respect to pricing, production scheduling, purchasing, contracting, delivery scheduling, and
many other activities in the industrial cycle. Productivity analysis, together with other elements
of a competitive strategy, may determine which products or processes should be expanded and
which should be phased out. For example, when an organisation calculates productivity and the
productivity is high therefore it means the organisation, or the firm will continue producing that
good.
Furthermore, it Supports innovation when calculating productivity analysis, joined with cost
data, helps in the evaluation of proposed changes to existing items or processes and the
introduction of new ones. It is the essential establishments for the persistent improvement
endeavours that are both famous and fundamental for endurance in business firms today.

Advantages of calculating productivity

 Expanded creation because of effective use of organizational resources prompts a lower
cost creation bringing about better deals and benefits For example, a company of chair
making utilizes all its resources in the production of chair. There is no wastage of
resources.
 When productivity increases it increases overall efficiency of an organisation. Which
means the business is producing at maximum level with minimum cost. It is a point
where an organisation is producing on its production possibility frontier.
Thus, in my opinion I would like to say, that it is very important for an organisation to calculate
productivity because it helps an organisation in a variety of ways such as help improve efficiency
as well as let the organisation know where the organisation stands in terms of profit making.
2. Production- the process of making raw materials into finished goods or products. Also refer
to the goods being produced.
Productivity- A measure of proficiency of a person or machine in turning inputs into outputs. It
is computed by dividing average output per period by the total cost incurred or resources.
The difference between production and productivity, is that the level of productivity in the
production of goods and services, determines the profit, efficiency and also the performance.
Which would simply mean that the higher the productivity of the firm the greater will be the
earning capacity. It also explains on the relationship between the input and the output in the
production processes. Another difference can be said that in simple words it would mean to
attain the highest possible output, while using a smaller number of resources. Production is
meant to be the amount of output, while on other hand Productivity is the output generated from
the resources used by the business.

CONCLUSION
To conclude it can be said that Scientific Management plays an important role, it promotes
inbetter management ideal level of resources, it has a, work specialization, mental
transformation, efficiency, agreeable connection among the executives and laborers, improves
way of life, modern thriving, motivating forces for higher creation and employment fulfillment
for any business. Then again, for any little or large organization the production and efficiency are
not repudiating terms, yet they are additionally firmly associated with each other.

Bibliography
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