International Business Operations Management Essay - 1

International Business Operations Management - Essay ExampleAnd production tends to be variable across the range of products which atomic number 18 commonly made to-order. Further, there may be a lapse in time between orders and delivery, due a bottle-neck in the change-over of production methods (Perison, Brown, Easton, & Howard, 2002). Thus, with this traditional nervous strain of operations management, the process is labour intensive and idle time is much more than likely.Organizations are making the switch from batch production to a more linear and continuous form of operations. This paper forget review the effects of the switch from batch to line processing for a fictional Company. Firstly, a comment of line processing will be given. Secondly, an evaluation of the effect the change will countenance on five core areas of operations will be provided (marketing, accounting, finance, human resources and information systems). Finally, a conclusion shall synthesize the main poi nts and support the use of line processing for the Company.A definition of line processing is a method of mass production that is high volume and extremely be efficient because it is not labour intensive (Shim & Siegel, 1999). There is minimum changeover of equipment, processes and provide when products are being manufactured, due to the standardization and minimization of a product range (Horngren, Foster, Datar, & Srikant, 2000). Higher profit margins are expected because of higher sales. Costs are saved across the whole management system and there are better quality products and improved delivery service, making the Company more cost competitive.Looking to Accounting systems of the Company, this department would have contributed to team discussions by using linear programming to forecast which product/s were to be deleted from the range, or which to be outsourced to small manufacturers if they were profitable (Pizzey, 1989). Accounting would also have been responsible for inpu t as to the potential sales increases expected from the operations change-over. Also, the department would have advised on the positive changes to inventory systems with line processing, as the method would allow for just-in-time production. Cost savings and the ability to order stock more consistently rather than confide on storage, would make the Company more cost efficient (Horngren et al., 2000). The savings would be passed onto staff in the form of simplifying bookkeeping management, and increasing wages. Turning outright to Finance, this department would need to have provided simulations and forecasts of the process selection of production methods to achieve increased sales and profits (Mayle, Bettley, & Tantoush, 2005). As sensitivity analyzers, the Finance staff would have determined the pessimistic, actual or optimistic volume expected from making the switch. Estimates of time, costs and cash inflows contribute to predicting the economic life of an organization, and help determine when the proposed changes will come into effect. The net present value and future capital investments of the switch as established by simulations would indicate whether the change be financed internally or externally (i.e., through investors or loans) (Horngren et al., 2000). This establishes the product life cycle in the global market at the moment.The Marketing department would have involved themselves in potential advertising costs. It is unlikely that branding would have been effected with the