operation management assignment
Operations management also deals with assessing the performance measures of the business processes for an organisation. The three most significant performance measures identified for a business organisation are:
Throughput
The number of customers, goods, services or money that goes through a business process per unit time is identified as its throughput. An example could be assessing an organisation could be the number of customers served in an hour or the number of units of a product produced in a minute.
Flow time
The total time taken by a business unit to complete a process from the beginning till it end is called the flow time. The flow time of a business is also referred to as their processing time. In the case where the organisations have more than one path through which the processes are flowing, the flow time is calculated as the longest path taken by the product or the service.
Inventory
The Inventory of a business in operations management is the number of flow units that are handled by a single business process at any given time. The example of inventory of a business organisation could be the total number of customers present in a store at any given time. It is interesting to note here that calculating inventory in accounting and financial management is very different from the calculation of inventory in operations management. For example, the number of people waiting to avail a service at an organisation is not considered to be an inventory by the accounting professionals but in operations management, they are in fact counted amongst the Inventory of the company.
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operation management assignment
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