The operations function is important to a firm because it affects directly the output that satisfies cusomters.

Essay by poisonivUniversity, Bachelor's November 2004

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The operations function is important to a firm because it affects directly the output that satisfies cusomters. Explain, with the help of a model, how customers can be satisfied through an efficient operations functions.

Organizations exist or are viable because they provide some form of satisfaction to the customers. It can be tangible products or services that provide the level of satisfaction.

The POM function is concerned about the production of goods and services that consumers buy and use. POM can be identified as the direction, and control of the processes that transform inputs into finished goods and services. It is the function that enables firms to achieve their goals through efficient acquisition and utilization of resources. Every firm, regardless of whether public or private, manufacturing or service, has a POM function.

POM seeks to create added-value fir the organizatuion so as t acheve sustainable competition advantage by satisfying demands and needs for the customers for the organizatuion's products and services.

It is customers' needs (input) that are transformed into either a product or service (output) that will provide the satisfaction that the customer desires. As the output oltimately eturns back to the customer, it is called a "closed loop" process. The satisfy customers will come back for more.

The Customer needs and satisfiers

Cusomers Needs Satisfiers Customers

The transformation process

Inputs Outputs

Transformation process

Operation Inputs Outputs

Restaurant cooks, waiters, food, facilities, energy meals, satisfied customers, entertainment

Hospital doctors, nurses, staff, equipment, healthy patients facilities, energy, health care service

Factory equipment, labor, facilities finished goods raw materials. energy

Satisfying the customer

The satisfaction of customer can be further broken down into five main activities:

Identifying and forecasting - customer needs are identified and translated into a statement of explicit forecasts

Analyze and intergrate - forecasts are analyzed and...