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Operations Management Assignment 2

This document discusses how information technology helps operations management and the tools organizations use to improve efficiency. It describes four main IT systems - ERP, SCM, NPD, and CRM - that integrate operations. ERP provides a common infrastructure to reduce errors and improve communication. SCM manages supply chains. NPD links engineering and production. CRM handles customer interfaces. Additionally, organizations use process mapping, gap analysis, root cause analysis, internal audits, and benchmarking to identify inefficiencies and improve processes. The goal is to increase output relative to inputs to enhance organizational efficiency.

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Ahmed Nadeem
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238 views

Operations Management Assignment 2

This document discusses how information technology helps operations management and the tools organizations use to improve efficiency. It describes four main IT systems - ERP, SCM, NPD, and CRM - that integrate operations. ERP provides a common infrastructure to reduce errors and improve communication. SCM manages supply chains. NPD links engineering and production. CRM handles customer interfaces. Additionally, organizations use process mapping, gap analysis, root cause analysis, internal audits, and benchmarking to identify inefficiencies and improve processes. The goal is to increase output relative to inputs to enhance organizational efficiency.

Uploaded by

Ahmed Nadeem
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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OPERATIONS

MANAGEMENT
ASSIGNMENT
#2
How IT is helping OM and
what are the tools used
by organizations to
enhance organizational
efficiency?

Submitted by:
Ahmed Nadeem (1211176)
Bilal Ali Shah (1211181)
Hiba Arain (1211186)
Marium Najeeb Khan
(1211191)
Sidra Khan (1211204)
BBA 6-C
Submitted to:
Hammad Masood

OPERATIONS MANAGEMENT ASSIGNMENT # 2


How IT is helping OM and what are the tools used by organizations
to enhance organizational efficiency?
Advances in technology are affecting every aspect of business, and operations management
is no exception. From robotics and automation on the factory floor to information technology
in the form of enterprise resource planning (ERP) systems and the Internet, technology, and
especially information technology, is dramatically changing the way in which both
manufacturing and service operations are being designed and managed.
Information Technology is the application of computers and telecommunications
equipment to store, retrieve, transmit and manipulate data,[1] often in the context of a
business or other enterprise. Thus, the use of information technology in manufacturing
operations can be divided into four major groups of software systems: (a) enterprise
resource planning (ERP), (b) supply chain management (SCM), (c) new product
development (NPD), and (d) customer relationship management (CRM).
An ERP system provides a firm with a common software infrastructure and database. When
properly installed and operating, an ERP system can provide a firm with a significant
competitive advantage, which can fully justify the investment of time and money. The
benefits of using an ERP system can take many forms, including (a) reduction in the number
of errors through the use of a common database, (b) faster customer response times, (c)
faster order fulfillment times, and (d) better overall communication within the organization.
Secondly, Supply Chain Management (SCM) software systems focuses on how firms
interact with the suppliers that are part of their overall supply chain. Depending on where the
firm is in its supply chain, this also can involve customers.
Thirdly, New Product Development (NPD) software focuses on linking the engineering
function with the operations function within a firm to facilitate the transfer of new product
drawings and models into manufactured products. These software systems include
CAD/CAM, which was discussed earlier in this chapter. Some software packages, such as
that offered by Parametric Technology, also provide similar links with vendors who are
directly involved in a firms new product development process.
Lastly, Customer Relationship Management (CRM) software focuses on the interface
between the firm and its customer. In addition to having order entry capability, these systems
collect customer-specific data, which allow the firm to provide customer-specific solutions.

All the above helps an organization enhance their operational efficiency, thereby facilitating
diversified processes on an organizations operations floor. But an organization also uses
different tools that enhance the organizational efficiency, i.e. a measure of the relationship
between organizational inputs (resources) and outputs (goods and services provided). In
simple terms the more output we can achieve with a given amount of inputs or resources,
the more efficient we are.
For enhancing organizational efficiency, they tend to use Process mapping that gives a
picture of how the work in the organization actually takes place and the interplay between
different roles, thereby making processes an excellent tool for identifying shortcomings and
opportunities for improvement.
Furthermore, they tend to use GAP analysis, which creates a picture of the differences
between the current position and the desired position for the whole or selected parts of the
business. Business organizations not only use this, but they focus on Root cause analysis
that identifies and provide a description of specific problems. This recognizes the root
causes that would be analyzed to determine why the problems and "wastage" in terms of
time and resources have occurred, promoting an improvement in efficiency.
Moreover, internal audits also serve as an excellent tool for finding and qualifying different
shortcomings and opportunities for improvement both for companies that have ISO
certification and for those that do not.
Lastly, they make use of Benchmarking that helps detects different selected parts of their
business that can be compared with other organizations. It can, for example, be interesting
for a government agency to compare its administrative costs with those of other government
agencies with similar circumstances to obtain an estimation of whether the organizations
administration is effective or not. Keeping in view the results they obtain, they would focus
on working towards increasing their organizational efficiency.

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