Executive Summary
In this unit we have considered the functions associated with a typical R&D department
operating in the microelectronic sector, produced a typical job description for a design
engineer and mentioned some management issues. Typical R&D functions that we have
described are:-
* Development of New Products- usually the primary function of R&D
* Product Maintenance- probably the most important secondary function of R&D- short
term income is important
* Product Enhancement – helps keep the company products ahead of the competition and
extends the life of products
* Regulatory Compliance- a legal requirement- products sold in the European Community
must carry the CE mark
* The Quality R&D Interface- quality is a major issue and R&D are heavily involved in
ensuring new products attain the required levels of quality
* The R&D structure we have outlined is typical of an SME- job descriptions help to
define the structure of a department effectively.
Operations Management
Operations management focuses on carefully managing the processes to produce and
distribute products and services. Usually, small businesses dont talk about “operations
management”, but they carry out the activities that management schools typically associate
with the phrase “operations management.” Major, overall activities often include product
creation, development, production and distribution. (These activities are also associated
with Product and Service Management. However product management is usually in regard
to one or more closely related product — that is, a product line. Operations management is
in regard to all operations within the organization.) Related activities include managing
purchases, inventory control, quality control, storage, logistics and evaluations. A great
deal of focus is on efficiency and effectiveness of processes. Therefore, operations
management often includes substantial measurement and analysis of internal processes.
Ultimately, the nature of how operations management is carried out in an organization
depends very much on the nature of products or services in the organization, for example,
retail, manufacturing, wholesale, etc.
Procurement (Purchasing) Practices
This topic reviews guidelines for buying various materials from suppliers and vendors —
materials, including computers, services from lawyers, insurance, etc.
Procurement (Purchasing) Practices
Management Control and Coordinating Function
Management control and coordination includes a broad range of activities to ensure that
organizational goals are consistently being met in an effective and efficient fashion.
Control Function of Management (includes major activities to ensure goals are being met)
Product and Service Management
As noted above, the major activities involved in product and service management are
similar to those in operations management. However, operations management is focused
on the operations of the entire organization, rather than managing a product or service.
