Importance of Administration for Operations Management

Importance of administration in managing operations, supply-chain management and quality is significant. Administration caters for information needs of organisations and also deals with developing and improving organisational processes, policies and systems.

Operations management is associated with information needs at various levels i.e. information about the availability of stock, information about the quantity to be produced, information about the workforce availability etc. and lack or inaccuracies associated with any of this information may have negative effect on business performance, hence the importance of administration. Implementation of management initiative of producing upgraded product range for online sales in practice is going to further increase the importance of administration for Company’s operations management.

For example, inventory management is going to be a major issue caused by the management plans of producing upgraded product range for online sales due to the lack of inventory space. This problem can be solved by applying Just-in-Time (JIT) principles. It has been noted that “the core philosophy of JIT is to provide an organisational framework to continuously reveal opportunities for elimination of non-value added activities” (Davis, 2009, p.43).

High level of sophistication of information and communication technologies (ICT) offers attractive opportunities for administrative managers in terms of increasing the level of effectiveness of various administrative processes. For example, in case of JIT system in particular information about needed parts can be sent to relevant supplier automatically without human intervention whatsoever.

References

Davis, M. (2009) “The Fundamentals of Branding” AVA Publishing SA