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  • Essay / Operations Management Metrics - 917

    Operations Management MetricsThe operations management process is the central artery of the organization because it produces the process of planning goods and services, which are its reason for being . Operations management is linked to all organizations because every organization produces either a product or a service. However, it cannot be said to be the most important function since there are other functional areas and boundaries within an organization. In today's rapidly changing world, organizations must tend to be efficient, effective and innovative in the face of a changing environment to succeed. Operations management must use metrics to accomplish its task and succeed with minimal disruption within the organization. Metrics are very important in managing operations within an organization because they provide functions such as control, reporting, communication, improvement opportunities and expectations. It is a certifiable measure expressed in terms of quantitative or qualitative measures. Additionally, metrics have different types of categories in organizations. One of them is “organizational orientation”, which has four different types of levels within the organization or company. 1. Organizational metrics – this type of measurement, captures and describes the performance of an organization (i.e.… market share and rate of return). 2. Product Metric – It measures cost per unit, contribution margin per unit or sales growth.3. Functionality – it can measure the performance of a group such as purchasing, services or manufacturing. 4. Activity/individual measures – measures specific to a person or activity (Vickery 1999)....... middle of paper ...... Problem solving can only be the means of projecting profits within an organization. The effectiveness of the measures measures to what extent the result meets the needs of its customers and their expectations. Metrics are an important measure that monitors the effectiveness of an organization's operational process. ReferencesBarnard, W., De Feo, J. (2004). The Six Sigma Breakthrough and Beyond from the Juran Institute. New York, NY: The McGraw-Hill CompaniesGray, C., Larson, E. (2008). Project management: the managerial process. New York, NY: The McGraw-Hill Companies Inc. Melnyk, S., Stewart, D., & Swink, M. (2004). Metrics and performance measurement in operations management; Managing the metrics maze. Journal of Operations Management, accessed May 2, 2011. http://mldc.whs.mil/download/documents/Readings/metrics%20maze.pdf