Operational Approaches Paper

Operational Approaches

University of Phoenix

ISCOM 370

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Operational Approaches

Competition among today’s organizations has become immense and is getting tougher and tougher day by day, since more new companies are starting businesses in the same industry. Whether they are from the manufacturing sector or service sector, the need for cutting the unnecessary costs, achieving maximum efficiency, and implementing operations management strategies is increasing with the passage of time (Shaikh, 2009). Therefore, more focus is being laid on Supply Chain Management these days by the businesses in order to set up certain operations approaches, distribution systems, and capacity layouts that not only reduce redundant costs but also provide better quality goods and services to the customers. This paper will discuss two operations approaches for each of these sectors – manufacturing and service – and would relate those approaches to quality control and efficiency that can be achieved by the businesses.

Operational Approaches for Manufacturing Organization

There is no wonder to know that the manufacturing organizations deal with the inventory much more as compared to the service organization. The inventory includes raw materials, complementary parts, actual or finished products, and other packing materials; therefore, the two most used operational approaches for by these organizations are Lean manufacturing approach and Outsourcing.

Lean manufacturing is the approach that identifies and minimizes waste by adopting continuous improvement to satisfy the customer’s demands; moreover, it ensures maximum quality by examining each part of the good after its production to identify the flaws that might be there (Blacharski, 2010). Second approach is outsourcing, where the organizations that are not efficient enough in producing a certain product or material, assigns that production task to some other company, entity, business, or vendor that actually...