Operation Management - Free Essay Example

Operation management connotes to the process of administering practices related to business with the aim of creating the highest level of efficiency possible within an organization. When carrying out an operation management, there are three factors that the administrator considers. These factors include; the work process of the team, the training that the different employees have gone through in the organization and finally the scheduling in the body. This paper endeavors to bring to various light issues in operation management. Firstly, it concentrates on why estimations are correct for classes or groups of items compared to individual elements. Secondly, it seeks to describe the three pros of quantitative forecasting methods, the three process of qualitative forecasting methods. It goes ahead to discuss why marketing is essential in making capacity decisions and finally how much safety stock the management keeps on hand. Beginning with why estimations are correct for families of products rather than particular products. It of importance to note that characteristics of specific products in a class is different even if the class has shared features. It makes it easier to make forecast even if components of individual item changes because not all the items can have a change in their characteristic at the same time thus making group forecasting appropriate.