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7/23/2019 Upcoming Trends in Operations Management _ Pardeep Singh Attri _ LinkedIn
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9/3/2015 Upcoming Trends in Operations Management | Pardeep Singh Attri | LinkedIn
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Upcoming Trends in Operations Management
Operations management is mainly concerned with the effective production of
resources, especially regarding the processes and designs. The resources are
transformed into more functional products. With the extensive global
competition, there are evolving trends which need to be applied towards business
development.
These are the upcoming trends one must consider:
In the future, variety of high quality products for short time
production is expected from firms.
Nowadays, everything is possible. Even the invention of high-tech machines will
totally result to fast production. Lessening the span of time for manufacturing
cycle will contribute to the speed and more production of goods. When a certain
company offers products on similar quality and price, there will be fast
distribution and purchase. As a result, the industry will have an edge over other
firms.
If there is an abundant supply, there will be a smooth distribution of goods. When
it comes to exportation, other countries will continue to purchase the variety of
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products. Having a variety means that there are a lot of options for the
consumers.
Environmental Responsibility will be a major concern in business
production.
Production managers nowadays must also be more concerned with environmentprotection. Specifically, waste disposal and pollution control must be taken into
great consideration. This promotes social responsibility among consumers. An
emphasis on waste reduction and recycling are also included on the
environmental concerns. Power plants are also utilized on proper way.
To respond to the environmental issues, the energy sector continues to devise
helpful ways on how to attain an eco-friendly environment. Similarly, the
application of enhanced mechanical engineering concepts gives way to quality
production.
There will be a great need for application of more innovative
strategies.
A business industry has its own set of strategies which are anchored with the
available resources. For the inputs, materials, facilities, information, and
customers are involved. Within the strategy, planning and designs are given
attention. For the final output, good products and services are introduced to themarket. Happy customers are satisfied with what they purchase.
Versatility will be a required skill in order to survive in market
competition.
This pertains to the ability of immediately adapting to whatever changes that may
occur. Specifically, a manufacturer must be able to meet the standards of the
consumers when it comes to demand.
Quality management must be observed in the succeeding years.
This is a common strategy adapted by most businesses. The ultimate goal is
satisfaction of customer on the distributed products. Unlimited ways must be
discovered to improve quality over time. Leaders must always strive for
innovations and improvement.
Employee Involvement will result to absorption of fresh ideas.
Within an organization, the opinions of workers also matter. For an effective
project management, there must be an active involvement among the employees
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Written by
on the low level of business firm.
With the prior knowledge for the upcoming trends in Operations management,
even a small business firm can be at par with those large corporations. Success
will not stay as a mere dream as long as a business owner adapt to modernization.
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What exactly is wrong with Indian stock markets ?
Since last Monday, Indian stock markets have been falling like nine pins. Every
rise is met with more vigorous selling. It does sound surprising that an economy
that is slated to grow faster than the rest of the world is falling so sharply. Scratch
the surface, and there is a method and an inherent logic to the madness. There
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are very strong and cogent reasons why the Indian markets are falling. Let us look
at some of the key factors...
The GDP effect...
We began the year with optimistic GDP estimates of 7.8% for the fiscal year 2015-
16. That looks like a distant dream now. Indian would be extremely happy to growat 6.8%, and that too sounds optimistic now. Remember, a 1% downgrade in GDP
translates into a wealth destruction to the tune of $20 billion. That is
approximately a 15% downward revision in the market capitalization. So the Nifty
falling from 9100 to 7700 can be explained by the arithmetic of the GDP effect
itself.
Forget price, even P/E ratios may be unsustainable...
Any bull market has 3 distinct phases. First markets try to catch up with company
growth. Then markets move at par with company growth. And finally, growth is
expected to catch up with market expectations. That is the point when P/E ratios
enter the realm of crazy valuations. As growth falters (remember, we have had 3
consecutive quarters of negative top-line and bottom-line growth), we may see a
compression of P/E ratios. While a lot of the P/E compression will be captured by
the erosion of market cap, it also tends to exert a distinct pressure on markets.
Too much of toxic balance sheets...
That is the real challenge for Indian companies. Banks are sitting on a mountain
of bad debts. With economic revival still elusive, a restructuring of loans is at best
a temporary solution. It just about postpones the inevitable. The day Indian
banks make a realistic provision of their irrecoverable dues, we will have a
realistic picture of bank balance sheets. Corporate balance sheets are hardly
better off. There are at least 7-8 major business groups in India, that are saddled
with unsustainable debt. We also need to factor the huge dollar debt which must
have increased substantially by now to adjust for a stronger dollar. Toxic balance
sheets have drawn a veil over the real corporate picture.
Abracadabra, Reforms Agenda has vanished...
This is probably the most important point as far as foreign investors are
concerned. There is a premium on a credible reforms process and a reforms
agenda. The incumbent government came to power 15 months back with a lot of
promise and panache. At the end of 15 months, the government has not even been
able to match the performance of its BJP predecessor the Vajpayee government
in 1999. The Vajpayee government gave a big push to reforms by facilitating
disinvestment, opening up telecom and giving a big thrust to infrastructure.
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Despite a thumping majority in the Lok Sabha, the current government has not
even achieved a fraction of what the Vajpayee government managed despite being
the head of a fractious coalition. While investors are still putting up a brave face,
the patience is wearing thin. If you are wondering why FIIs withdrew Rs.15,500
crore in August 2015, here is the answer.
Those of who keep clinging to the great India growth story, need to sit back andreflect. The truth is that the markets in India are correcting for very cogent
reasons. India had the unique benefit of cheap oil and cheap commodity prices,
which could have been a golden opportunity to push the reforms agenda through.
Looking at the equity markets, it looks like "Acchhe Din (Happy Days)" may
continue to be elusive!
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