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Operations Management and Ethics

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Operations Management and Ethics

What is operation management? Operation management is the direction and control of transformation process of a system so that the system adds value to a company's product by enhancing productivity and efficiency. This management style focuses on managing the processes that involves product creation, development, production, and distribution. The operation function is concerned with the selection that best suits the company. The transformation process is to produce the required output, for the right price; to fit the specifications for a customer needs at the same time balancing the company's customer service levels (Chase, Jacobs, Aquilano, 2005).

Decision-Making Process

Information Technology has a major role in the decision-making processes in an organization. One of the useful tools that executives and managers use to help with decision making process is the company's database system. A database is organized to collect facts and information pertaining to a company's infrastructure. The data that can be used by executives and managers can gain solutions and to make the best decision regarding the company's goals, missions, and financial reports. Having the intranets and internet it has made many advantages within office work environment and business styles. The interactions has spawned off new types of businesses such electronic procurement, electronic commerce, and electronic payment over the internet (Chong, 1999).

Southwest Operation Style

Southwest has been a rapid growing competitor in the airline industry, being the first

successful airline to create a low cost, high value segment. Providing reasonable rates, Southwest has enabled a new class of customers. They have made investments in the information systems to improve efficiencies, reduce commission, and distribution cost. Leadership in this area has caused Southwest to develop a reputation as an innovator. The procurement is simple, in which they only have one aircraft type, which reduce the number of spare parts. The distribution capabilities are being increased with the evolution of electronic/ticketless ticketing and internet purchasing. The benchmark is for high productivity and low cost per seat a mile. Streamlining for efficiency and flexibility



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