Operations Management Challenges

Challenges of operations management

Meet the customer’s expectations or need

Since many decades all the business organizations have been facing the challenges regarding how to satisfy the customers completely by offering right kind of products and or good quality services. While implementing operations management practices in businesses some factors need to be considered or studied to satisfy the customer’s needs.

            Many business organization where the operations management implemented, it is quite difficult to produce the product or services that satisfies the customers expectations or need completely. Customers expectations or need Changes with availability of alternative products or services in the market with innovations over time. Many service organization faces the challenges regarding satisfying the customers by offering the services or products that is more ahead than alternative products or services available in the market. If the organization fails to provide the expected features in the products or services then customers prepare to go for another alternative products or services in the market. So it becomes difficult to maintain the products of the services that is acceptable by the customers in the market.

Examples

The business organization which are providing Transportation Services, maintenance services, project services faces huge challenges in meeting the customers expected services. Such as maintenance services providers faces challenges in providing better services to telecommunication companies.

 Globalization 

Globalization is the integration of domestic economical activities with world economical activities. It allows any country to execute the trade with other country in the world. Globalization has positive as well as negative impact on domestic businesses. Operations management practices of many organization faces the major challenges due to  globalization.

Following are the problems the globalization may cause in front of domestic organizations.

Tough competition

Need of innovation and so modern technology

Need of a dynamic marketing strategy that competes the foreign companies

Maintain excellence in all business activities

Generate the revenue is reducing market share

Examples

1. Due to globalization the whole world was facing the problem of the pandemic situation which affected all economic activities.
2. Globalization has reduced the market share of domestic companies. Domestic companies are facing tough challenges in implementing operation management practices to compete with foreign companies.

Labor shortages

Many large organization faces the shortest of required labor which may be skilled or nonskilled labor. The shortage of skilled laborers tends to fail to complete the different operations of the task in operations management practices as per standards or expectations. Different tasks or operations Allocated among the different neighbors scaled nonskilled laborers. Shortage of the labor in such situations causes delays in the completion of the work or incomplete work Resulting in huge losses for the company.

Example

1. Telecommunication industries need Many services such as maintenance services. Project Services, Infrastructural Services which are provided by small vendors. Different operations are allotted among all the skilled laborers to keep the telecommunications services in condition. Shortages of labor cause delays or incompletion of the work which leads to huge losses for the vendors Ads they need to pay the fine use coin use fine to the telecommunication operators.
2. In manufacturing organizations when There is a shortage of skilled labor then manufacturing processes cannot be executed properly. This leads to a reduction in production quantity as well as an increase in faulty production.

Sustainability

            The capability of any business to survive in the hugely competitive environment by offering innovative products or services that satisfy the customers. Many businesses may not survive due to a lack of innovation and flexibility in their businesses specifically in operations management practices.

            Companies that implement operations management practices towards satisfying and retaining existing customers can sustain in the market for a long time. Many companies are not taking care of their existing customers due to which however they are capturing the new market or customers they lose their existing customers. So every business organization that implements male operations management practices needs to focus on existing customers to retain them by offering them good services through efficient operations management practices.

Hence for every business organization sustainability in use competitive And uncertain environment becoming difficult to maintain.

Examples

1. In India mobile phone manufacturing companies such as Micromax fail to implement innovative operations management practices due to which many other Chinese companies captured the market.
2. Nokia which was the leader in 2010 in the Asian market regarding mobile phone handsets due to a lack of innovation and avoiding adopting new technology failed to sustain itself in the market. Their sustainability Is reduced due to neglecting the touch screen technology and innovation in their headset such as adopting the Android operating system.

Difficulties in reducing or maintaining lead time

Simply the lead time means the time required to complete or execute the process from start to finish. For instance, Lead time means the time from when the company receives the order from the clients regarding the production of a certain quantity of products to the time when the company finishes the production of that certain quantity and delivers it to the customer.

            Leader time is studied and used in businesses such as supply chains, operations, projects, etc. It plays a very important role in making optimum utilization of resources and introducing the cost incurred in completing the process of producing the product or delivering the services.

Every organization strives to reduce the lead time to satisfy the clients or customers. Operations management practices of service organizations or manufacturing organizations always execute all the operations to achieve reduced lead time.

Examples

1. While running or completing the different projects the operations management of the Indian Space & Research Organization(ISRO), faces several challenges in maintaining the expected lead time or reduced lead time this lead time not only completes the project within a short. But it is also responsible for reducing the cost incurred on completion of the project.

1. Construction of a bridge and building many vehicles, and instruments taken on rent. If the projects will not be completed in certain. The cost of the project will be increased due to the rent. So implementing operations management practices in real estate organizations becomes a tough challenge specifically in reducing the lead time.