Contents

• Introduction 3
• Operations Management 3
• Inventory Management 4
• About Abraj Energy Services SAOC 7
• Inventory Management Issues in Abraj Energy Services 8
• Recommendations 9
• Conclusion 11
• References 12

Description

Operations management earlier dealt with only the manufacturing process but today involves the management of various processes, which includes inventory management, capacity planning, schedule management etc. Management of operations basically refers to transforming the inputs to desired outputs to provide value to the customers through the finished products and services. In this process there are several sub-processes, which are the part of operations management and their effectiveness is essential for overall effectiveness of the operations management. Abraj Energy Services LLC is one of the successful well drilling and construction companies in Oman, which has bagged huge projects within a short span of time. But the company has failed to manage its inventory effectively leading to increase in operational costs. The company’s legacy system has led to over stocking of the raw materials and also the lack of co-ordination has led to increased procurement of the materials by different departments and go unused at the sites and are not returned back to the warehouse leading to increasing wastage. The company would be able to overcome this issue by implementing the ERP system, which will increase co-ordination, provide accurate stock details and enable the company to maintain the stock effectively. Also, the lean approach can be effectively used to ensure that only required materials are ordered and stocked.