Introduction
The very essence of any business is to cater needs of customer by providing services
and goods, and in process create value for customers and solve their problems. Production and
operations management talks about applying business organization and management concepts
in creation of goods and services (Junija, 2018). Production and Operations Management
involves managing the transformation to create products or services. This is important as it
keeps the business fresh and allows for new products and services to be created. The
operations manager is responsible for ensuring that the business remains effective by creating
new products and services that will meet the customers' needs. Cost, quality and delivery are all
needs that the customer will be interested in. Product management is important because those
in question will be aware of what is needed by whom it is needed and how to market the
product. They will also know what market the items should be focused on. Workers need a plan
to make them aware what is needed, and when it is needed, and this is another role of the
production management team. Although a product manager must oversee the entire lifecycle of
a particular product, they must also recognise that their main focus should be on driving forward
new product development. Operations Management on the other hand, is an important field in
business which comprises all the aspects of production, efficiency and production related
processes (Dixon, 2019) (Dixon, Mark, 2019) (OADP, 2018). For every business running in the
industry, the reason for its continuous existence is having an excellent production and
operations management. Managing is not only the job that a general manager must comply.
Every person in the organization is essential to the living of a business. It is very important to
focus on the management of the production and operation of a business as their life depends on
the demand of the customers they cater.
The Importance of Production and Operations Management in the Field of
Accounting
The very reason why people are building businesses is to ultimately gain profit. Money
or financial aspect is the end goal why people supply goods and services for the demands of the
customers. For every business to continue its existence, a strong and sound financial report is
what every business man needs. The accounting and finance department of every company is
very important as it facilitates the operations of having a strong and sound financial state of the
business. The job of an accountant is to ensure that the business is in the right track when it
comes to money or financial matters. The operation happening in the accounting department is
divided into different categories; accounts receivable, accounts payable, payroll, cash, and
financial statements. Every accountant has a role that needs well management for the operation
to function well. In order to keep track of all the inflows and outflows of money in the company,
the field of accounting is what they need. An accountant performs financial functions related to
the collection, accuracy, recording, analysis and presentation of a business, organization or
company's financial operations. In a smaller business, an accountant's role may consist of
primarily financial data collection, entry and report generation. Middle to larger sized companies
may utilize an accountant as an adviser and financial interpreter, who may present the
company's financial data to people within and outside of the business. Generally, the
accountant can also deal with third parties, such as vendors, customers and financial
institutions. With all the information and data related to finances and money, the operation
function of the accounting and finance departments are very much needed and necessary.
Describe the sequence of activities and organizations involved in producing
products or delivering services
A supply chain is an entire system of producing and delivering a product or
service, from the very beginning stage of sourcing the raw materials to the final delivery
of the product or service to end users. Supply chain lays out all aspects of the
production process, including the activities involved at each stage, information that is
being communicated, natural resources which are transformed into useful materials,
human resources, and other components that go into the finished product or service
(Panganiban, 2017).
PRODUCING AND DELIVERING PRODUCTS
PRODUCING AND DELIVERING SERVICES
The tools in decision making and
strategies needed to be able to become a
successful planner and decision maker
Behind every successful and failed organization is a decision made by the leader that
was executed by its member. A manager plans, organizes, staffs, leads, and controls his team
by executing decisions. The effectiveness and quality of those decisions determine how
successful a manager will be. Managers are constantly called upon to make decisions in order
to solve problems. Decision making and problem solving are on-going processes of evaluating
situations or problems, considering alternatives, making choices, and following them up with the
necessary actions. Sometimes the decision‐making process is extremely short, and mental
reflection is essentially instantaneous. In other situations, the process can drag on for weeks or
even months. The entire decision‐making process is dependent upon the right information being
available to the right people at the right times. For every decision made, a series of process are
first considered to arrive to a decision. As a production and operation manager, making decision
is very crucial for the business to grow and make profit. Every decision maker must know what
strategy is needed and tools to use before making decision. Here are the tools and strategies
needed in making decisions (Amar, 2010).
1. Defining the problem- as a production and operation manager, knowing what the
problem or conflict is, is what he must know for him to make decisions. The decision‐
making process begins when a manager identifies the real problem.
2. Identify limiting factors- All managers want to make the best decisions. To do so,
managers need to have the ideal resources — information, time, personnel, equipment,
and supplies — and identify any limiting factors. Realistically, managers operate in an
environment that normally doesn't provide ideal resources. For example, they may lack
the proper budget or may not have the most accurate information or any extra time. So,
they must choose to sacrifice — to make the best decision possible with the information,
resources, and time available.
3. Develop potential alternatives- Time pressures frequently cause a manager to move
forward after considering only the first or most obvious answers. However, successful
problem solving requires thorough examination of the challenge, and a quick answer
may not result in a permanent solution. Thus, a manager should think through and
investigate several alternative solutions to a single problem before making a quick
decision. Brainstorming is the best way to develop potential alternatives.
4. Analyze the alternatives- Managers must identify the advantages and disadvantages of
each alternative solution before making a final decision. In this case, elimination is one
way to arrive at a fewer best options. Regardless of the method used, a manager needs
to evaluate each alternative in terms of its: Feasibility — Can it be done? Effectiveness
— How well does it resolve the problem situation? Consequences — What will be its
costs (financial and nonfinancial) to the organization?
5. Select the best alternative- The best alternative is the one that produces the most
advantages and the fewest serious disadvantages. Sometimes, the selection process
can be fairly straightforward, such as the alternative with the most pros and fewest cons.
The manager must decide which alternative is the most feasible and effective, coupled
with which carries the lowest costs to the organization.
6. Implement the decision- After selecting the best alternative to solve the problem, the
manager must implement the decision made and make his members apply or used the
decision made.
7. Establish a control and evaluation system- The production and operation manager
must not stop once the decision is implemented, he must make sure that the team
functioning to the decision must be in control and being guided for the decision to carry
out in the best way.
In conclusion, every manager must know this 3 process and strategies as their tool to make a
sound decision for the problem or conflict they encountered.
Role/Function of the Accountants in the company to increase productivity
The accounting structure of a company is an essential component to business
operations. One of the primary roles of an accountant usually involves the collection and
maintenance of financial data, as it relates to a company or firm. The accountant ensures that
financial records are maintained in compliance with lawful and accepted procedures and
policies on the corporate level. The financial information for any organization should be kept in a
pristine system because it is a key component used in operating and managing any business.
Managing the financial data of an organization can also include more sophisticated duties, such
as developing, implementing and maintaining financial data bases, as well as establishing and
monitoring control procedures (OADP, 2018).
The relation of the role of the Accountant to the role of the production and
operations manager
Most businesses that employ operations managers assign them various duties. An
entry-level operations manager will need to understand accounting processes and how to
interpret financial statements. They will be expected to have demonstrated problem-solving
skills, which will help them deal with basic accounting issues, and strong organizational skills,
which will help them prioritize and manage workloads. Business operations managers need to
be skilled at working effectively with diverse employees and cross functional teams. The ability
to form positive business relationships across functional areas is important. An entry-level
business operations manager will most likely collaborate with accounting managers, but they
should still proactively take ownership of employee errors and business problems. The
operations manager will have some responsibility in deciding what processes should be used to
produce the product (Carpio, 2018). Choices they may face include technology, process flow
and job design. The quality of the product or service is important and should be continuously
improved. The scheduling of tasks and jobs to ensure that the needed capacity is achieved is
another responsibility the operations manager will need to take on. They will also manage the
inventory by deciding what to order, when to order it and how much to order. The movement of
the products will also be important in this role. The job of an accountant is to help the operation
manager to keep track of the inventories and expenses made for the operation and production
to continue. Obtaining greater amount of sales of the products or services produced by the
production and operations team also rely to the accountants and finance managers as they
made the analysis on where to cost cut and what to increase or decrease in the productions and
operations.
Summary
Production and Operations Management are very important in everyday life of a
business. Having a good production manager will lead to a satisfying and much improved
products or services, also having a great operations manager will lead to a greater and larger
profit as good outputs come from the best production and operation. Accountants are very
important for every production and operation of products or services as the role of an
accountant does not only limit on the taxes, receivables or payables of the business. When it
comes to production, accountant is of great help to keep track of the turnovers like in
inventories, purchases, supplies and assets. Managing resources is one of the function of the
operation manager as well as minimizing the costs of producing products or services, that is
why, the skill of an accountant in analysing what to cost cut or when to cost cut is very
important. Also, the decision of an operation manager is very essential as it is where the
continuity of producing and releasing the output rely. When operations managers made good
decisions, the profitability of the business is in good performance, however, when operations
manager make wrong decision, the performance of the business is at stake as products or
services are not in check or not satisfying enough for the customers to purchase.
Conclusion and Recommendation
In conclusion, for every business organization to succeed and continue its existence,
management in the production and operations of their products or services must be in focus.