MGT613 – Production and Operation Management Assignment No. 2

Q. HiStars a manufacturing company deals in manufacturing computers. Marketing, Finance and Operations are three important departments of the Company. The functions of these departments are interrelated and can’t carry without each other in maintaining their production process.
Describe the importance of each department to the other.
Describe why it in necessary for an Operations Manager to have the knowledge of Marketing and Finance.

Ans: A.
Marketing
Knowledge of each department is very important for an Operation Manager. Marketing deals with selling of products/services of an organization to its potential customers. This is done through promoting the product or services and pricing decision. Marketing function relates to get information regarding products or service demands and inform the Operation Manager for fulfillment of customers’ demands. In computer manufacturing company it is essential to access the market demand and increase it by promoting the product at a right price. For the purposes of advertising finance department manage funds.
Operations
Operations department is responsible of all the activities carried out for the production of products or services of an organization. This is department which produced products or service for the use of its consumers according to their needs. Operations department is also responsible for the maintaining the quality of goods or service. For the production of goods or services finance department arrange all type of raw material and other type of resource for the production of goods or services and marketing promotes these products and may increase its sale.
Finance
The finance department focuses on the arrangement of funds for all the activities of the business and secured the business resources and all these resources are allocated accordingly for the productivity of business. If all the business resources are allocated effectively and efficiently business can get better profit or return on its resources. Operations and marketing department exchanges its information with finance department for funding and financing its activities.

B.
It is necessary for an Operations Manager to have the knowledge of Marketing and Finance because of following reasons.
• For better operation activities
• For fulfillment of market demand by increasing the productivity of the business
• Better planning of resources and operations of the department
• If the operation Manager have the knowledge of finance he can use the available resource for the production process and can ask for more funds.
• Can assess the market demands and customers’ feedback.
• Can increase the quality of product by obtaining the feedback of the customers.