Lack of performance measurement: Performance measurement is an issue that faces operations section, in terms of production quantity and quality as well as the performance by the employees, individually and collectively. Performance measurement usually begins at defining correctly what product the organization wants to produce in terms of quantity and quality; and when it shall be delivered to the intended client in terms of reliability and timeliness. These measures should reflect the satisfaction of the services or products provided to its clients as well as inform the concerned parties in the organization about how well the organization’s products and/or services are provided.
Despite the importance of this performance measurement, most operational area of organizations are still faced with coming up with a decisive and holistic performance measurement criteria that can enable the company to carry out self-evaluation on whether they are on the right track as far as the organization’s operation area is concerned. Tall bureaucratic structures This is an impediment to the operation section because most decisions that needs to be made promptly still need to follow the long procedures.
This in turn causes unnecessary delays that can be detrimental to the company’s operations. This causes other activities to stop within the company because they cannot continue before being approved by the bureaucratic reporting and decision making procedures. Over ambitious promises to customers: In the current business environment where competition is inevitable, companies get themselves giving promises to customers and in turn fail to fulfill as promised. This is common in the operation section where diverse promises, which ranges from quality service and products to timely delivery, have been pledged by organizations and at the end, they find out that one or more of the promises made are not fulfilled.
The operations section find itself facing this challenge because they are the production centre for the services and products and that timely delivery is a function of how fast they are in production, while also keeping the quality requirement in mind. Lack of knowledge and experience of market expectations, products, or services: On the day to day business operations, the operations managers are always tasked with the challenge of trying to understand customer’s requirements and the changes that needs to be done to the organization’s services and products to match the expectation of customers.
ReferenceBrown, B.J., & Lamming, 2005. Strategic Operations Management. New York: Butterworth-Heinemann.