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High Tone

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Submitted By ntsram
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Chapter # 1 page 26 Case – High tone Electronics, Inc. Questions 1 to 2.

1. Explain why operations management is critical to the success of a business. Why would developing an Internet-based business require different operations consideration for HEI? Is George Gonzales correct in his assessment that this would not be “business as usual”?
Operation Management is the business function that plans, Organizes, coordinates and controls the resources needed to produce a company’s goods and service. It involves managing people, equipment technology, information and many other resources. It is responsible for orchestrating all the resources needed to produce the final product. This includes designing the product; deciding what resources are needed; arranging schedules, equipment and facilities, managing inventory controlling quality; designing the jobs to make the product; basically, operations management is responsible for all aspects of the process of transforming inputs into outputs. As proper management of operations can lead to company success, improper management of operations can lead to failure. So, the operations management is critical to the success of a business. The web poses challenges for operations management. The internet can be used to purchase almost everything on-line. the internet has given customers flexibility, it has also created challenges for companies; delivering exactly what the customer ordered at the time promised, making promises on web site is one thing. The job of operations and is much more complicated that might seem. That is why it always requires different operations consideration for HEI. Yes, George Gonzales correct in his assessment that this would not be “business as usual”.
2. Recall that HEI wishes to continue its reputation of high quality and service. Identify key operations management decisions that need to be

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