What is Operations Management and Why is It Important

What is Operations Management?

Operation Management means planning, organizing and directing day to day tasks in order to achieve daily tasks. Operations Management is responsible for the maintenance and management of the organization of daily goals.

Definition of Operation Management

According to Wikipedia

Operations management is an area of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services.

According to Galloway 

Operations management is concerned primarily with manufacturing or the change of state of physical goods”.

Functions of Operations Management in an Organisation

  • Finance plays a main function in operations management. The operation manager should not waste finance in unproductive tasks.
  • The function of operation management is basically concerned with planning to directing of daily goals. So, the manager should make sure the effective work of the organization.
  • The strategy is also the main function of operation management. The manager should have pre-planned tasks.
  • it is the duty of operations manager to ensure the product’s designed, that would be the market trends and demands.
  • Operations manager should ensure the quality of products. The manager should not compromise with the quality of Products

Importance of Operations Management in an Organisation

  • Operations management helps to achieve the objectives of the company.
  • Operation management improves the productivity of employees.
  • Operation management improves goodwill and presence of the organization.
  • The manager will become more able to utilize resources.
  • Operations management helps to improve the motivation of employees.

Importance of Operations Management
Importance of Operations Management

Nature of Operation Management

  • Operations management is dynamic in nature, it can be changed by the situation.
  • Operation management is transforming the process from Raw material to Finished goods.
  • Operation management is the continuous process.
  • Operation management is the main pillar of development and administration.
  • Operation management helps to grow of the company.

Key Approaches to Operations Management

  • The first approach of operations management is to Design of goods and services, that will attract customers.
  • To manage the Quality of products or services.
  • Location Strategy is also a key approach of operations management.
  • To manage Supply Chain Management.
  • To create Accountability of operations managers.
  • To accept the Change.

Operations Management Examples

Suppose A company wants to manufacture Mobile in India. The company needs to take some operations decisions. For example:

  • Purchasing of Raw material from China(assumed).
  • To hire skilled and qualified employees.
  • To set Manufacturing units.
  • To make sure the supply chain of mobile phones.
  • To set services center across the country.

If the organization makes good operations decisions, Then the company will be able to produce affordable, functional, and attractive Mobile phones.

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