Operations management is the main central function of a company ,itrefers to the administration of business practices to create the highest level of efficiency possible within an organization. It is connected with converting materials into goods and services, to maximize the profit of an organization . Operations manager provide, develop , deliver goods and services to clients based on their wants and the abilities of the company .It include planning, organizing, coordinating, and controlling all the resources needed to produce goods and services of a company . it also includes equipment, managing people , technology , information, and all the other resources that is needed for the production of goods and services .
OM plays an important part in a company … One of the main examples of successful operations management in the retail sector is the operations management practices in ZARA . Zara is the flagship brand of the Spanish fashion retail giant , who has had an phenomenal performance record in the recent years . The creator of ZARA is Amancio Ortega Gaona who built the foundations in Galicia , Spain and now it’s internationally known as the second largest clothing chain world-wide.
Zara’s retail operation now extends to about 650 stores operating in 50 different countries . Zara contributes about 2/3 of the company’s sales making it without a doubt the firm’s growth engine . Information Systems: Most of the designs are finished by using CAD. This is a main reason for making the manufacturing process fast . ZARA invests very much on technology in order to aid in the flow of information . Zara’s managers posses hand held PDA , and they use it to send information like sales figures , order placing and customer feedback to the head office in La Coruna .
Based on this designing team confirms the design and sends them across to manufacturing units where in CAD is used to manufacture the products.The designers send their design suggestions to distribution and to factory departament , by scanning a design into a computer and electronically transmit to factory computers including computers controlled cutting equipment . Designers input the designs patterns into CAD systems which automatically feed into the cutting machines in the factories ensuring the required quality of outputs and having a minimum fabrics waste . Fast speed of production: Zara has the skills to transform a fashion concept and place finish products in the stores within 2 weeks .