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?