What is Operation Management?
Posted by gagakmansas on Monday, March 09, 2015 with No comments
Operations management refers to the systematic design, direction, and control of processes that transform inputs into services and products for internal, as well as external customers.
It deals with managing
those fundamental activities and processes that organizations use to produce
goods and services that people use every day. A process is any activity
or group of activities that takes one or more inputs, transforms them, and provides
one or more outputs for its customers. For organizational purposes, processes
tend to be clustered together into operations. An operation is a group
of resources performing all or part of one or more processes. Processes can be
linked together to form a supply chain, which is the interrelated series
of processes within a firm and across different firms that produce a service or
product to the satisfaction of customers. 1 A firm can have multiple supply
chains, which vary by the product or service provided. Supply chain
management is the synchronization of a firm’s processes with those of its
suppliers and customers to match the flow of materials, services, and
information with customer demand. ( Reid and Sanders, 2013)
Image below shows operations as one of the key functions within an organization
Image below shows operations as one of the key functions within an organization
Another definition I got from another source
Operations
management (OM) is the business function
that plans, organizes, coordinates, and controls the resources needed to
produce a company’s goods and services. Operations management is a management
function. It involves managing people, equipment, technology, information,
and many other resources.
The role
of operations management is to transform a company’s inputs into the
finished goods or services. Inputs include human resources (such as workers and
managers), facilities and processes (such as buildings and equipment), as well
as materials, technology, and information. Outputs are the goods and services a
company produces. Figure 1-2 shows this transformation process. At a
factory the transformation is the physical change of raw materials into products,
such as transforming leather and rubber into sneakers, denim into jeans, or
plastic into toys. At an airline it is the efficient movement of passengers and
their luggage from one location to another. At a hospital it is organizing
resources such as doctors, medical procedures, and medications to transform
sick people into healthy ones. ( Krajewski et
al. 2013)
references :
Krajewski, Lee J., Riztman, Larry P. and Malhotra, Manoj K. (2013), Operations Management Processes and Supply Chains,10th, Harlow, Pearson.
Reid and Sanders (2013), Operations Management, 5th, Wiley.
Categories: Operations
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