3 core functions of any business organization
Operation management
Marketing management
Financial Management
Operation management
10 Main strategies in operation management
The 10 main strategies in operations management, often referred to as the 10 strategic
OM decisions, are fundamental, interrelated areas that managers must navigate to
achieve a competitive advantage. These areas guide how a company utilizes resources
to produce goods and services efficiently.
Here are the 10 main strategies/decisions in operations management:
1. Design of Goods and Services: This involves determining what to offer
customers, focusing on customer needs, quality, cost, and environmental
sustainability.
2. Quality Management: Establishing clear, actionable quality standards and
implementing systems (like TQM or Six Sigma) to meet or exceed customer
expectations.
3. Process and Capacity Design: Determining the technology, machinery, and
methods to produce goods, while ensuring the organization has the right capacity
to meet demand.
4. Location Strategy: Selecting the optimal location for facilities, balancing costs
with proximity to suppliers, labor, and customers.
5. Layout Design and Strategy: Arranging workstations, equipment, and material
flow to maximize efficiency and safety.
6. Human Resources and Job Design: Recruiting, training, and retaining a skilled
workforce, while creating jobs that balance productivity with employee
satisfaction.
7. Supply Chain Management: Developing, coordinating, and maintaining
relationships with suppliers to ensure cost-effective and timely delivery of
materials.
8. Inventory Management: Balancing the cost of holding inventory with the need to
meet customer demand to ensure smooth operations.
9. Short term Scheduling: Creating detailed, efficient, and realistic schedules for
production, resources, and personnel to meet deadlines.
10. Maintenance: Establishing procedures for repairing and maintaining equipment
to minimize downtime and ensure consistent production quality.
Value that you give to the consumer will be back through profit.
Caveat
P=O/I