ing product can be reduced and quality improved through R&D programmes.New products have to be developed. What the design is and how it can be produced are important development decisions. Innovative designs have to be made within cost and skill parameters, and staff trained to handle the new products.PurchasingProcuring and storing raw materials, components & equipment is a key role. Operations Managers have to work with the purchase specialist in order to source the raw materials and components in the right quantity, price and quality, choice the suppliers and discuss contarctual issues.Choosing the appropriate relationship for each supplier is important. Whether the supplier relationship aims at cost reduction or value-added benefits for the customer, or both. The appropriate relationship could be one of competitive tension, cooperative partnership, or strategic alliance. MarketingProduct strategies must be implemented identifiying market segments, deciding wich products are offered, and deciding on logistical problems.All organisations have to balance their production capacity with the market. Demand and supply must be sincronised. The demand can raise or fall due to seasonal changes, taxes, etc. The operations manager can use strategies to vary demand, delay orders, balance seasonal products, maintain excess capacity, adjust capacity, administer costs.Some firms operations can serve as the foundation for successful strategic attacks and defenses. Innovation- production staff needs marketing and sales information. Finally, customer feedback helps R&D design and create future products. Finance and accounting The Operations function, whether it be in a manufacturing or service business, employs most of the people, spends most of the money and utilises most of the fixed and working capital assets of that business.A major part of total revenue and capital investment expenditure is spent on production operations. Production department mu...
