What Is Operation Management?

Operation Management

Operations management refers to the administration of business practices to create the highest level of efficiency possible within an organization. It helps a lot when you have to choose the best way in which every single part in the elaboration of goods or in the creation of services because it have to fit perfectly with your budget, taking care about prices, quantity and quality of raw material because it is the clue to be a good operation manager.

Operation management deals with the design and management of products, processes, services and supply chains. It considers the acquisition, development, and utilization of resources that firms need to deliver the goods and services their clients want.

Goods are physical items it includes raw materials, parts, subassemblies such as motherboards that go into computers, and final products such as tablets, mobile phones and cars, etc.

Service is the action of helping or doing work for someone, but of course, you have to pay. A service is an intangible commodity is often an economic activity where the buyer does not generally, except by exclusive contract, obtain exclusive ownership of the thing purchased. The benefits of such a service, if priced, are held to be self-evident in the buyer's willingness to pay for it.

Services are activities that provide some combination of time, location, form, or psychological value. A clear example of services is the services provided by a hotel, like spa services, care services, reception at the hotel, and in general the facilities it may provide you.

Operations managers make decisions relating to the operations function and the processing systems that are used.

Operation is about producing all goods and/ or services and it needs the support and input from other areas of the organization.

With management operations, we have to take care about organizing, planning, directing and controlling the production of both goods and services to generate higher added value because the ideal situation for a business organization is to achieve a match of supply and demand.

The business organization has always three basic functional areas:

- Finance: Ensures and invests assets of company capital.

- Marketing: Is responsible for assessing consumer wants and needs, and selling and promoting the organization of goods or services.

- Operations: is the set of activities that creates value in the form of goods and services by transforming inputs into outputs.

The finished products either goods or services that result when inputs have been processed are called Output.

The results of operations are goods and services and it has a relation with the productivity.

The productivity is a measure of process improvement, or how efficiently we change resources into goods and services

The productivity is the amount of output per worker per period of time.

Process management is the ensemble of activities of planning and monitoring the performance of process.

A process consists of one or more actions that transform inputs into outputs. In essence, the central role of all management is process management.

Otherwise another critical factor in the operation management is the supply chain management.

It is the management of the flow of goods. It includes the movement and storage of raw materials, work-in-process inventory, and finished goods

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