Operations management
What is Operations management?
Operations management (OM) is the administration of business practices to
create the highest level of efficiency possible within an organization. It is
concerned with converting materials and labour into goods and services as
efficiently as possible to maximize the profit of an organization.
What is the purpose of operations management
(OM)?
Operations management is concerned with controlling the production process and
business operations in the most efficient manner possible. OM professionals
attempt to balance operating costs with revenue to maximize net operating profit.
Responsibilities of OM
Planning
•
Capacity
•
Locations
•
Product and services
•
Make or buy
•
Layout
•
Projects
•
Scheduling
Organizing
• Degree of centralization
•
Process selection
Staffing
•
Hiring/laying off
•
Use of overtime
Directing
Controlling/Improving
•
Inventory
•
Quality
•
Costs
•
Quality
•
Incentive Plans
•
Issuance of work orders
•
Job assignment
Responsibility of OM managers
Direct responsibilities:
The activities which are directly related to producing and delivering products
and services.
Indirect responsibilities :
He activities involved in interfacing with other parts of the organisation
Broad responsibilities :
A wider set of tasks that involve scanning the business, social and political
environment in which the organisation exists in order to understand its context.
Importance of OM
Operations is an important part of every organization.
We should know how goods and services are produced (All managers
should have an understanding the main principles and tools of OM).
It is responsible for the customer fulfilment aspects of an organization.
Thus, it manages customer satisfaction.
OM responsible to increase productivity and profitability Increasing
overall productivity leads to economic growth and a higher standard of
living.