Operation Management is a way or means through which the listed objectives of an operating system is achieved. There is always a confusion between the word OM & PM (Production Management). It is accepted norm that OM includes techniques which are enabling the achievement of operational objectives in an operating system. The operations function can be connected to other functional operations within the organization such as marketing, finance, human resource and etc. so it can be described that all functional areas undertake operations activities because they all produce the services and goods. So, Question is: What is Operations Management? Meaning and Definition.
Operations Management is explaining into Meaning and Definition.
The operating system includes both manufacturing sectors as well as the service sector, but when you use the word PM, you should be careful to note that it refers to the manufacturing sector but not the service sector. Suppose, you are designing a layout for the hospital you should say that you are applying the Operations Management Technique not the Production Management Technique.
What is Operations Management?
Meaning: Operations management is the business function that is responsible for managing and coordinating the resources needed to produce a company’s products and services. All types of the organization must carry out operations management because all organizations produce some mixture of products and services.
Operations management is an important factor in any organization. The decisions that the organization makes will have a major impact on the cost of the products and/or services, and its delivery which results in the revenue coming into the organization, whether it is manufacturing, retail or services sectors such as IT, finance logistics, transportation, healthcare or public utility or educational, the service delivery pipelines must be carefully designed, resourced and managed effectively and efficiently.
The effectiveness of the system is determined by the success with which various subsystems and components interact with each other and with the environment in which the organization operates.
Definition of Operations Management:
“Operations Management as the process whereby resources, flowing within a defined system, are combined and transformed by a controlled manner to add value in accordance with policies communicated by management” – Joseph G .Monks.
Operations management (OM) is concerned with managing the resources that directly produce the organization service and products. The resources generally consist of people, material, technology, and information but may go wider than this. These resources are brought together by a series of processes so that they are utilized to deliver the primary service or product of the organization. Thus operation management is concerned with managing inputs (resources) through transformation processes to deliver outputs (service or products).
The largest activities that OM focuses on our product creation and service development, and the efficiency with which both are distributed. Operations management often includes analyzing a company’s internal processes. Ultimately, the way that an organization carries out operations management depends upon the nature of products or services that it offers. Managing purchases, monitoring inventory and preserving quality are the primary goals.