Operational Management
Basic Understanding
What is OM?
OM is operations management. Which is managing the
processes.
Operation – process/activity
Management – controlling, planning, organizing and directing.
Three major or core functions of an organization:
1. Marketing
2. product/service development
3. operation
Support function
HR
Finance
Why OM?
1.
2.
For the production of goods and services
for the delivery of goods and services
Difference between goods and services
4vs
Volume - how many products or services are made by the operation?
Variety - how many different types of products or services are made
by the operation?
Variation - how much does the level of demand change over time?
Visibility - how much of the operation's internal working are
'exposed' to its customers?