Importance of operations management in an organization

The tertiary sector is where the output is sold to the customer. Thus, the role of operations management and the operations manager is to ensure a smooth production process that contributes to the output of goods and services of an organization.

Businesses adopting a cost leadership strategy commonly have standardised products The car manufacturer Kia is well known for being a cost leader. In these industries, the operations manager will focus on customer service and after care. By reducing the costs of production and distribution, a business will be able to gain an advantage over competitors.

Operations management refers to the administration of business practices to create the highest level of efficiency possible within an organization. In this way the business will be profitable.

Other businesses supply intangible non-physical products to customers. In these sectors, operations managers will focus on obtaining the materials that go into the making of the product inputs and the actual production processes. Interdependence with other key business functions The operations department brings together the materials and the activities needed for the production of goods and services to meet consumer demand.

Characteristics of Operation Management: This is called a service and the businesses that provide these are found in industries in the tertiary sector. Cost leadership Cost leadership refers to the strategies to produce goods or services at the lowest possible cost whilst they are still acceptable to customers.

Porsche focus on a differentiation strategy to set it apart from other cars in relation to design, marketing and technology.

The strategic role that operations management plays in successful organizational performance can be seen as more organizations move towards managing their operations from a value chain perspective which means the entire series of organizational work activities that add value at each step beginning with the processing of raw materials and ending with the finished product.

These businesses are usually found in industries in the primary and secondary sectors. For example, airlines will try to differentiate their product so as to attract consumers. Most businesses are supported by the functions of operations, marketing, and finance The major functional areas must interact to achieve the organization goals Role of Operations Management: Operation refers to the coordination of those activities in a business that are involved in combining inputs for the purpose of producing an output that is valued by consumers.

There are various reasons which makes operations management important. Businesses can differentiate themselves from others by changing obvious aspects such as price, quality or performance but also in more innovative ways such as changing the technology used in the process, speeding up delivery time and building alliances.

Therefore, it can be seen that the Operations department carries out a coordinating role in the business to ensure that the prime function main activity of the business is carried out efficiently and effectively so that consumer demand is met.

The operations manager will liaise with the other department in the following ways: And just as every organization produces something ,every unit in an organization also produces something.

However, it is important that customers see that they are gaining value for moneyotherwise this strategy will not see long term rewards for the business. For example, a bag of oranges can go through certain procedures to turn it into bottles of orange juice. It also shares ideas across the business about how to improve processes or achieve cost savings to bring about best practice.

Operations management refers to the design, operation and control of the transformation process that converts such resources as labour and raw materials into goods and services that are sold to customers. Today, every successful organization recognize the crucial role that operations management plays as part of the overall organizational strategy to establish and maintain global leadership.

This process is called value adding. The operations department is responsible for acquiring the inputs and devising the best production methods so that value adding occurs in the most efficient and effective way.

What is the role of operations management in an organization & why it is important in companies?

Operations Management - Explained: For example, a primary producer, such as a sheep farmer, will provide fleece to a wool manufacturer. For example, in the car industry.Operation management ensures that an organization is conducting business at peak efficiency and ability.

Operation management includes the development and use of resources that are necessary for a company to deliver goods and services to its customers. Operation management professionals deal with.

Why Is Operation Management Important?

Management is the process, which combines and transforms various resources used in the operations subsystem of the organization into value added services in a controlled manner as per the policies of the organization.

Thus, the role of operations management (and the operations manager) is to ensure a smooth production process that contributes to the output of goods and services of an organization.

Characteristics of Operation Management: An organizations core function; Exists In every organization whether Service or Manufacturing, profit or Not for profit. Why Operations Management is Important for a Company A White Paper Education Operations Management is a fundamental part of any organization.

It plays a vital role in the success of organization. It is the area of management which is concerned with creation of goods or services of a company.

role of operation management aggregate planning scheduling materials requirement planning maintenance contror importance of operations management operations management is responsible for managing activities that are part of the production of goods and services their direct What is the role of operations management in an organization & why.

Operations Management has a crucial role in an organization that aims to create profitability and sustainability. Along with that, operations management respected the requirements of all the stakeholders, such as environment, society, shareholders, employees, suppliers and customers that have different perspectives which sometimes conflicting with each other.

Importance of operations management in an organization
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