Operations management focuses on carefully managing the processes to produce and distribute products and services. Usually, small businesses don’t talk about “operations management”, but they carry out the activities that management schools typically associate with the phrase “operations management.” Major, overall activities often include product creation, development, production and distribution.
However, product management is usually in regard to one or more closely related product — that is, a product line. Operations management is in regard to all operations within the organization.) Related activities include managing purchases, inventory control, quality control, storage, logistics and evaluations. A great deal of focus is on efficiency and effectiveness of processes.
Therefore, operations management often includes substantial measurement and analysis of internal processes. Ultimately, the nature of how operations management is carried out in an organization depends very much on the nature of products or services in the organization, for example, retail, manufacturing, wholesale, etc.While operations management is focused on the production of goods and/ or services in an organization, its importance to the overall organization cannot be underestimated.
When an organization’s operations are properly managed, the functions of all other departments are smooth, and when an organization’s operations are managed improperly, all other departments suffer.A human resources department is able to make good predictions on the need for staff, to develop good job descriptions, and to recruit and train more easily when operations are run well. Jobs are easier to fill, and turnover remains lower. If an operation is not run well, the consequences for human resources are not good.
For example, the human resources people cannot develop good job descriptions and requirements for the production department, find it more difficult to recruit and train, and face higher turnover, which is costly to any organization.An accounting department that is supporting a smooth operation can pay materials and supplies bills promptly since a well-run operation plans ahead. Payroll is easy to handle, with predictable costs. But if the operation is run poorly, predictable costs such as these are difficult to ascertain, making it difficult for the accounting department to do its job well.A finance department, which is charged with finding capital, either through debt or equity financing, can raise money far more easily with a smooth-running, successful operations division, being able to point to high productivity, trimming of costs, and good scheduling to meet demand. On the other hand, if the finance department can only show a record of inefficiencies, too much or too little inventory, and uneven productivity, it is difficult to raise capital. The marketing division’s success is reliant on successful operations as well. It must have a successful and on-time product or service to market.
It must have a product or service that works and that is being produced in appropriate numbers. If it does not, if there is a shoddy product or a product for which production is behind, the best marketing in the world is of little use.A finance department, which is charged with finding capital, either through debt or equity financing, can raise money far more easily with a smooth-running, successful operations division, being able to point to high productivity, trimming of costs, and good scheduling to meet demand. On the other hand, if the finance department can only show a record of inefficiencies, too much or too little inventory, and uneven productivity, it is difficult to raise capital. The marketing division’s success is reliant on successful operations as well. It must have a successful and on-time product or service to market. It must have a product or service that works and that is being produced in appropriate numbers.
If it does not, if there is a shoddy product or a product for which production is behind, the best marketing in the world is of little use.
