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    Strategic Role of Operations Management

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    Eashan Jindal
    Operations management (OM) applies to every organization and encompasses all aspects of production from inspiration to implementation. It involves transforming inputs into outputs through activities related to creating goods and services. We study OM for four key reasons - to understand how organizations are productively and profitably run, how goods and services are produced, the role of operations managers, and how to manage costs through informed decisions. Operations managers are responsible for planning, organizing, staffing, leading, and controlling key functions and decisions around product management, supply chain management, inventory management, forecasting, scheduling, quality management, and facilities planning.

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    Strategic Role of Operations Management

    Uploaded by

    Eashan Jindal
    96 views2 pages
    Operations management (OM) applies to every organization and encompasses all aspects of production from inspiration to implementation. It involves transforming inputs into outputs through activities related to creating goods and services. We study OM for four key reasons - to understand how organizations are productively and profitably run, how goods and services are produced, the role of operations managers, and how to manage costs through informed decisions. Operations managers are responsible for planning, organizing, staffing, leading, and controlling key functions and decisions around product management, supply chain management, inventory management, forecasting, scheduling, quality management, and facilities planning.

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    Strategic Role of Operations Management (1)

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    Operations management (OM) applies to every organization and encompasses all aspects of production from inspiration to implementation. It involves transforming inputs into outputs through activities related to creating goods and services. We study OM for four key reasons - to understand how organizations are productively and profitably run, how goods and services are produced, the role of operations managers, and how to manage costs through informed decisions. Operations managers are responsible for planning, organizing, staffing, leading, and controlling key functions and decisions around product management, supply chain management, inventory management, forecasting, scheduling, quality management, and facilities planning.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    96 views2 pages

    Strategic Role of Operations Management

    Uploaded by

    Eashan Jindal
    Operations management (OM) applies to every organization and encompasses all aspects of production from inspiration to implementation. It involves transforming inputs into outputs through activities related to creating goods and services. We study OM for four key reasons - to understand how organizations are productively and profitably run, how goods and services are produced, the role of operations managers, and how to manage costs through informed decisions. Operations managers are responsible for planning, organizing, staffing, leading, and controlling key functions and decisions around product management, supply chain management, inventory management, forecasting, scheduling, quality management, and facilities planning.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    Strategic Role of Operations Management

    Operations management (OM) applies to every type of organization. OM encompasses every


    aspect of production, from inspiration to implementation. It is the "who, what, where, when
    and why" that goes into every finished product and provided service.

    What is Operations Management?

    The definition of operations management is the activities that relate to the creation of goods
    and services through the transformation of inputs into outputs. One of the key elements of
    OM is production, or the creation of goods and services. In the case of manufacturing, the
    output is very obvious, because it produces a product. You know the end product in a Harley
    manufacturing plant is going to be a Harley Davidson motorcycle. It is tangible.

    The production of less tangible products, such as booking a hotel room, is services. These
    products are less obvious or "hidden" from the public or even the customer. Regardless of
    tangibility, any activity that goes into production is a function of operations management.

    Why study OM?

    Operations management is one of the three functions every organization performs to achieve
    its goals. These are not only for production, but for survival in the marketplace.

    1. Marketing generates the demand for the product. Unless consumers know it is available,
    they might not want it or know they need it. Marketing puts the product or service within
    view and explains how it benefits the consumer.

    2. Production/operations create the product. Without the product, there is no way to create or
    meet demand.

    3. Finance/accounting collects money, pays the bills, and tracks how well the organization is
    doing in regard to its bottom line. Yet without a product and a demand, this function is
    unnecessary.

    Every type of business – hospitals, nonprofits, trucking companies, factories, etc. – has these
    components.

    So we study operations management for four main reasons, no matter what industry:
    1. To learn how people organize themselves to be productive and profitable at their chosen
    enterprise

    2. To learn how goods and services are produced

    3. To learn what operations managers do so it can be put to use in numerous opportunities

    4. To learn what makes it such a costly part of an organization, and how to manage those
    costs through informed decisions

    What Operations Managers Do

    The reason all good managers study operations management is to effectively accomplish the
    next layer of basic functions in the management process. Those are: planning, organizing,
    staffing, leading, and controlling.

    To do any of those things, operations managers need to evaluate all the information at hand
    and decide on a course of action. There are seven major decisions in which operations
    managers play an integral part. Each are summarized here, .

    1. Product and Service Management. What good or service do we offer, and what is the
    design of it?

    2. Operations and Supply Chain Management. Should we make -- or buy -- what we need to
    produce our good or service? If we purchase it, who can supply it?

    3. Inventory Management. How much should we keep on hand? When do we re-order?

    4. Forecasting and Capacity Planning. What does the short-term and long-term schedule look
    like? How much can we make in what period of time?

    5. Operations Scheduling. What do we need for materials? Personnel?

    6. Management of Quality. What quality system should we use? What impact does quality
    have on our organization?

    7. Facilities Planning and Management.

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