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Operations Management

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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 queue systems.

 

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, 2007).

 

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.

 

References

McNamara, Carter, Free Management Library (2007) “Operations Management” Available from: http://www.managementhelp.org/ ops_mgnt/ops_mgnt.htm 

Accessed: 10/25/2007

 

Wikipedia: The Free Encyclopedia (2007) “Operations Management”

Available from: http://en.wikipedia.org/wiki/ Operations_management 

Accessed: 10/25/2007

 

Fisher College of Business The Ohio State University “Operations Management” Available from: http://admissions.osu.edu/ u-majors/pdf/opermgt.pdf.

Accessed: 10/25/07

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