Operations management (OM) is the business function responsible for managing the process of creating goods and services. Operations management is an area that deals with managing the processes involved in the production and distribution of goods and services. This means that it deals with the management of business processes. It can also be defined as the field related to the management and direction of the physical and technical functions of a company or organization.
The company or organization must be related to development, production and manufacturing (Weiss & Gershon 1). Operations management is the process of managing the production of goods and services. Therefore, operations are a broad term that encompasses both the management of the manufacture of hard products and the management of services. Essay, management, organization, operations management, essay on operations management.
Essentially, operations management deals with the overall management of effective processes. The operations also relate primarily to the transformation of inputs into outputs, as reflected in Figure 1 below. Operations managers must also consider how they interact with other parts of the organization, for example, the subsequent supply chain. The operations management plans and controls all the activities necessary for the provision of the company's product or service.
Each organization in the general supply chain will have its own operating processes and procedures and, therefore, it is useful for operations managers in those environments to understand the impact of decision-making on both initial and subsequent operations. This is because an operations manager determines what raw materials and methods to use to produce goods. Operations management refers to the set of management activities in which organizations participate to create their products and services. After determining the appropriate design for a process, operations managers should consider planning and control aspects of the process, such as inventory, any capacity restrictions that affect volume variability, and opportunities to increase efficiency.
Johnson, Clark and Shulver (201) explain that there are four distinct advantages associated with effective operations management. Production and operations management (POM) consists of transforming production and operational inputs into products that, when distributed, meet the needs of customers. Second, another important function of an operations manager is to interview candidates and supervise employees (Wolniak, 2011). Ultimately, there are strong financial and commercial arguments in favor of well-managed operations that help provide control and oversight of the business and the management of costs and resources.
Ensuring that products are available when organizations need them is a recognized discipline in operations management and also in supply chain management. Quality management is also something that is regularly referred to in discussions about operations management. Since the available monetary resources are limited, managers try to distribute them rationally among all the activities of the organization, including the operations function, by developing plans. That's why it's no surprise that operations management is relevant both for entire companies and for managers in other functions of the organization.
In each case, operations and inventory managers must think carefully about the actual amount of raw material or finished products they need in relation to issues such as cost, storage space and demand. However, as technology has improved dramatically, especially in recent years, management information software and hardware that can be used to help plan inventory and operations have proliferated.
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