Operations Management is a business field that is concerned with the production of goods and services,
and involves the responsibility of ensuring that business operations are efficient and effective. (Wikipedia, 2007). The process
also involves resource management, distribution of products and/or services to customers as well as careful analysis of the
APICS The Association for Operations Management defines operations management as follows; “"the
field of study that focuses on the effective planning, scheduling, use, and control of a manufacturing or service organization
through the study of concepts from design engineering, industrial engineering, management information systems, quality management,
production management, inventory management, accounting, and other functions as they affect the organization" (Wikipedia,
The focus of Operations Management remains to diligently manage the related processes in order to
produce and distribute products and services. The major activities involve product creation, development, production and distribution.
(Managementhelp, 2007). Therefore, Operations Management refers to all operations taking place within the company. The related
activities also include managing purchases, inventory control, quality control, storage, logistics and evaluations. Since
great deal of emphasis is laid upon the efficiency and efficacy of the processes, an equally great deal of analysis goes into
the analysis of the internal processes.
Mentioned below are the standards of Operations Management Planning:
- Control: this is achieved by the creation
and maintenance of work-flow by putting to use the resources and facilities that are available.
- Lead: By the careful development and arrangement
of organizational strategy to the entire staff.
- Organization of resources such as facilities
and employees in order to achieve effective production of goods and services.
- Careful planning by assigning priorities
to customer, employee and organizational requirements.
- Maintaining and monitoring staffing, levels, Knowledge-Skill-Attitude
(KSA), expectations and motivation to fulfil organizational requirements. (Wikipedia, 2007).
- Measurement of performance and analysis
of efficiency versus effectiveness.
The major activities involved in product and service management are similar to those in operations
management. Quality Management is yet another vital component of Operations Management, which also focuses on constant improvement.
Total Quality Management and Benchmarking are a few advances which have further fine-tuned the process of Operations Management.
Usually, the Managers are responsible for the important activities such as quality management and control, capacity planning,
materials management, purchasing and scheduling.
Operations Management finds a major significance in this era due to increased foreign competition.
The other factors that have exerted pressure on Operations Management are shorter product and service life-cycles, better-educated
and quality-conscious consumers and the advances in technology. Therefore, the emphasis is improved productivity and offering
a wide range of goods and services to customers. Managers play an indispensable and strategic role in the processes of Operational
Management in order to satisfy customer needs as well as maintain a strong foot-hold amidst soaring competition.
McNamara, Carter, Free Management Library (2007) “Operations
Management” Available from: http://www.managementhelp.org/ ops_mgnt/ops_mgnt.htm
Wikipedia: The Free Encyclopedia (2007) “Operations
Available from: http://en.wikipedia.org/wiki/ Operations_management
Fisher College of Business The Ohio State University “Operations
Management” Available from: http://admissions.osu.edu/ u-majors/pdf/opermgt.pdf.