Operations and Material Management Assignment Seth Dahlia University of Phoenix MOM 2 There are many operations a company must accomplish to supply the goods and services people use every day. Operations include everything a company must do to create the goods and services provided to the customers. Materials management includes all the activities within a company that control the flow of materials into and out of the operating systems. The operations and materials managements systems or MOM work to make better use of a company’s resources and accelerate the process f getting goods and services to the customer.
Different types of companies have different MOM systems. Wend’s, for example provides both a product and a service. Wendy goal is to provide good food with fast and friendly service. The main goal of a company Like HP is providing a product. HP strives to develop and sell top of the line computers to Its customers. Then there are companies, such as, a hospital whose goal Is to provide excellent service to all It patrons. All three of the companies use an MOM system to manage and monitor their input, operations, and output.
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Each of the fore mentioned companies need a team of employees to accomplish their goals, the tasks the employees perform however very greatly. The majority of the employees of the Wendy restaurant chain are tasked with the production and sales of the company’s food. These employees take the raw product and turn it into the final product of the food they serve; the employees are also tasked with providing superior, fast service to the customers. Haps employees design and produce high quality computers and computer products to sell to its customers. The employees’ main task. HP, is to create the best product they can at the lowest price possible. At the hospital the employees’ tasks are to provide service to the patrons to help them with any problem they may have. The tasks performed by the employees of these companies may be technically different but the end goal of having satisfied customers is very much the same. MOM can be broken down into three different stages; input, operations, and output. The Input stage Involves everything a company does to supply Its operations, Including raw materials, components, Ana ladder. Operations teen take ten Input Ana evolve it into output through experts, skills, knowledge, and machines. The output is then the goods and/or services provided by the company. These three stages are the basis for MOM. As with any system in business there are costs involved with an MOM system. The first cost associated with the MOM system is the cost of raw materials and components. The cost of raw materials and components can be a large percentage of a company’s total operating costs, especially company’s that produce a physical product. The company must find low cost suppliers to keep the costs of production down.
The amount it costs a company to run their buildings, machinery, computers, and other components needed to transform inputs into final products is called plant costs. Labor costs are the third set of costs associated with MOM. For serviced based companies labor casts are the biggest part of their production costs. A company’s labor costs include the MOM 3 number of employees it takes to produce the product, how much each employee must be paid, and any benefits the company supplies its employees. Inventory costs effect all three stages of the MOM system.
Inventory by definition is the quantity of sources, materials, supplies, and goods a company has in stock. At the input stage a company’s inventory consists of raw materials, in the operations stage their inventory is compiled of products in work, semi-finished products that are in the operating system, in the output side the inventory consists of stock that is ready to be shipped to customers. The costs involved with inventory are the costs to store the items as well as having a the companies capital tied up in the inventory that can not be turned into profit until it is made into finished products and can be sold to the customers.
The final cost associated with MOM is distribution costs, the costs to ship the finished products to the customer. Companies can reduce distribution costs by making contracts with distributors or moving manufacturing closer to the location the products will be sold at. These are the five cost factors that it takes to run an MOM system. There are four main areas that can give a company a competitive edge when it comes to operating systems. A company can design their MOM system the cost of keeping inventory and to better use resources, reducing the amount of time it takes o process a customers order are some ways to help improve productivity.
Increasing the number of customer orders that can be correctly processed and ensuring reliable products are made by using a high-quality supply of inputs can help a company increase the quality of their products. A competitive edge can also be gained through innovation. Examples of innovations a company can make are to improve the quality of their products and find ways to reduce the cost of production and distribution. Improving customer responsiveness through quality customer service, a good hopping experience and after sales service is another way to gain a competitive edge.
If a company can successfully grow in these four areas the have a good chance of staying competitive. M systems are a great tool Tort Duskiness’s to utilize. Developing a good system can help a business control the materials bought for production, run all the functions assimilated with production, and the final product that is to be sold to the customer. With a proper MOM system a business can save money, lower costs, and gain the competitive edge they need to succeed.