What Is Operations Management (OM)?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 labor into goods and services as efficiently as possible to maximize the profit of an organization. Show
Operations management teams attempt to balance costs with revenue to achieve the highest net operating profit possible. Key Takeaways
Operations ManagementUnderstanding Operations Management (OM)Operations management involves utilizing resources from staff, materials, equipment, and technology. Operations managers acquire, develop, and deliver goods to clients based on client needs and the abilities of the company. Operations management handles various strategic issues, including determining the size of manufacturing plants and project management methods and implementing the structure of information technology networks. Other operational issues include the management of inventory levels, including work-in-process levels and raw materials acquisition, quality control, materials handling, and maintenance policies. Operations management entails studying the use of raw materials and ensuring that minimal waste occurs. Operations managers use numerous formulas, such as the economic order quantity formula, to determine when and how large an inventory order to process and how much inventory to hold on hand. The combination of understanding and coordinating the work of a company is central to becoming a successful operations manager. Operations and Supply Chain Management (OSCM)A critical function of operations management relates to the management of inventory through the supply chain. This process is known as operations and supply chain management (OSCM). To be an effective operations management professional, one must be able to understand the processes that are essential to what a company does and get them to flow and work together seamlessly. The coordination involved in setting up business processes in an efficient way requires a solid understanding of logistics. An operations management professional understands local and global trends, customer demand, and available resources for production. Operations management approaches the acquisition of materials and the use of labor in a timely, cost-effective manner to deliver customer expectations. Inventory levels are monitored to ensure excessive quantities are on hand. Operations management is responsible for finding vendors that supply the appropriate goods at reasonable prices and have the ability to deliver the product when needed. Another large facet of operations management involves the delivery of goods to customers. This includes ensuring that products are delivered within the agreed time commitment. Operations management also typically follows up with customers to ensure that the products meet quality and functionality needs. Finally, operations management takes the feedback received and distributes the relevant information to each department to use in process improvement. What Operations Managers DoOperations managers are involved in coordinating and developing new processes while reevaluating current structures. Organization and productivity are two key drivers of being an operations manager, and the work often requires versatility and innovation. As part of their daily responsibilities, operations managers must possess a variety of skill sets, including:
A master of business administration (MBA) degree in operations management can provide global perspective on industry trends and an awareness of financial regulations and political uncertainties that can affect an organization. It also provides a solid grasp of the inherent complexities and the tools needed to respond well to change. What is the purpose of operations management (OM)?Operations management (OM) 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. What are some systems of operations management?Modern operations management revolves around four theories:
What is an example of operations management?Operations management is prevalent in the healthcare sector. The current healthcare system overuses expensive, technological, and emergency-based treatment. High costs from care often remain uncompensated due to uninsured patients. A prevalence of services in expensive settings creates a burden on taxpayers, health insurance holders, and healthcare institutions. The Bottom LineIn simple terms, operations management (OM) is the process of employing business practices designed to achieve maximum efficiency as a means to achieve maximum profitability. Within the process, operations managers utilize organization and productivity to achieve their primary goals. Balancing the efficient use of resources, including staff, materials, equipment, and technology, is key to a successful OM process and, by extension, to the success of the company. Is the management of systems or processes that create goods or provide services?Operations: management of systems or processes that create goods and/or provide services.
What is goods and services in operations management?Goods are tangible items offered to the customers. Services are intangible items offered to serve customers. Further, a company deals with goods and services for business operations.
What is system process in operation management?An operations management system is a collection of processes and procedures that enables a company to effectively manage business practices and achieve the highest level of efficiency with day-to-day operations.
What is management in production system?Production management means planning, organising, directing and controlling of production activities. Production management deals with converting raw materials into finished goods or products. Production management also deals with decision-making regarding the quality, quantity, cost, etc., of production.
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