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. Operations management teams attempt to balance costs with revenue to achieve the highest net operating profit possible. Show
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 minimal waste occurs. Operations managers utilize numerous formulas, such as the economic order quantity formula to determine when and how large of an inventory order to process and how much inventory to hold on hand. The combination of understanding and coordinating the work of a company are 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 the 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 products are delivered within the agreed time commitment. Operations management also typically follows up with customers to ensure 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:
An MBA in operations management can provide global perspective on industry trends and an awareness of any 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 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 OM?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 themselves. The Bottom LineOperations management (OM) is, in simple terms, 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 operations management (OM) process and, by extension, the success of the company. Which business function is responsible for planning coordinating and controlling the resources needed to produce a companyâ s products and services?Operations management (OM) is the business function responsible for managing the process of creation of goods and services. It involves planning, organizing, coordinating, and controlling all the resources needed to produce a company's goods and services.
Which business function is responsible for sales generating customer demand and understanding potential customer wants and needs?Marketing/Sales
Marketing consists of all that a company does to identify customers' needs and design products and services that meet those needs.
Which business function is responsible of managing the customers of a company?The marketing function have so many roles, one of this role is understanding the needs and requirement of the customer and making sure that the organization's goods and services meets the customer needs.
Which of the following functions has to produce and deliver products and services?Operation function is responsible for producing products and delivering services. But it needs support and input from others areas of the organization.
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