Operations management is the systematic direction and control of processes that transform resources into finished goods or services for customers. It involves generating new ideas or expanding current ideas in a process that will lead to the production of new products, forecasting consumer demand, managing the production process from raw materials to the finished product, and ensuring that products meet quality and functionality needs. Operations management teams strive to balance costs with revenues to achieve the highest possible net operating benefit.The responsibility of an operations manager is to ensure that the products sold to consumers meet their needs, as well as that they match current market trends. This involves managing the production process from raw materials to the finished product, controlling everything from production, shipping, distribution to product delivery.
Operations management textbooks generally cover demand forecasting, although it is not strictly an operations problem, because demand is related to some variables of production systems.Asset Management is also an important part of operations management. An organization's buildings, facilities, equipment, and inventory directly participate in or support the operations function. When managing manufacturing or service operations, several types of decisions are made, including operations strategy, product design, process design, quality management, capacity, facility planning, production planning and microoperation.The need to manage manufacturing and service operations efficiently and effectively has led to a significant increase in interest in operations management in recent years. Operations managers participate in day-to-day material management activities, which include purchasing, inventory control, and work scheduling activities.
Each requires the ability to analyze the current situation and find better solutions to improve the effectiveness and efficiency of manufacturing or service operations.For many private sector organizations, reducing costs through efficient management of operations gives them a fundamental competitive advantage. Operations management also often follows up with customers to ensure that products meet quality and functionality needs.Often, the same organization transforms all three types of inputs (materials, information and customers). For example, withdrawing money from a bank account involves information about the customer's account, materials such as checks and currency, and the customer. The treatment of a patient in the hospital involves not only the state of health of the “client”, but also any materials used in the treatment and information about the patient.
Product design involves creating a product that will be sold to the final consumer.The combination of understanding and coordinating the work of a company is essential to becoming a successful operations manager. Operations are one of the main functions of an organization, along with supply chains, marketing, finance and human resources.