Operations management (OM) is the administration of business practices to create the highest possible level of efficiency within an organization. It is responsible for converting materials and labor into goods and services in the most effective way possible to maximize profits. To ensure success, organizations must commit to using best practices in operations management. This includes maximizing resources for research and development, protecting the environment, maintaining quality control in manufacturing, meeting financial obligations, and meeting industry-specific legal and compliance requirements. A well-managed supply chain process will result in an efficient production process, low overall costs, and timely delivery of products to consumers.
Operations managers use numerous formulas, such as the economic order quantity formula, to determine when and what size an inventory order should be processed and how much inventory to keep available. Maximizing production through proper planning is a key element of operational management of services. This problem affects all levels of operations and, therefore, requires operations management's knowledge of the ways in which an organization can meet these ever-changing expectations. Some of the functions directly affected by the operations manager are purchasing, manufacturing, shipping, packaging, human resources, company finance, and IT support. If customers are not satisfied with the product, service, or delivery, the operations manager receives the feedback and submits the complaint to the relevant departments. To ensure success, it is important to map out business processes and store them manually, continuously track process metrics manually, and ensure that employees follow best practices. A commitment to using best practices in any field is a commitment to using all the knowledge and technology at our disposal to ensure success.
Unlike strategic decisions, tactical operations decisions have short and medium term effects on the organization. If you want to learn more about how operations management was created, save this slideshow to read later. Operations management is an integral function of every organization regardless of its size, sector, whether it is services or manufacturing, or whether it is for profit or not. Ensuring that your organization correctly converts inputs (labor, materials, technology etc.) into goods and services in a timely manner is essential for success.
