Key Functions of Operations Management – Production and Operations Management
Operations management is the crucial part of an organmization which monitors all operations of the organization for achieving the tactical and strategic aims of the company.
Operations management function, comes into play since the procurement of inputs for producing the end product or delivery of the service.
Hence, operations management function spans from the procurement till delivery. In manufacturing company it involves arrangement of raw material, sscheduling production, quality monitoring and delivery of end product to customer.
Similarly in service companies operations management function involved arranging resources for the service to delivery of service to customer.
Operation Function
Usually, the operation management function is regarded as the most efficient user of various resources like manpower, machines and materials and finance during production of the end product or delivery of service. Hence, the operation management function is seen as ensuring efficiency. Further, for maintaining efficency cost of production should be minimized with full utilization of manpower and machinery, reduction of material wastage, having a proper plan and controlling the resources and the output. This is the main focus for the operations management function in an organization.
Operational efficiency is being increasingly getting the focus but many issue should be addressed as
1. ‘Optimisation’ needs an objective. Optimisation for whom? What is the basic purpose behind optimisation? Should optimisation be limited to minimising costs and/or maximising profits to the company? Shouldn’t the customer enter into the calculations regarding optimisation?
2. Is ‘profits’ the primary objective, or is it the ‘customer service’ that should be the primary objective guiding the company?
3. How should ‘efficiencies’ and ‘optimisations’ help towards fulfilling the organisation’s objectives?
4. Resources usually do not consists of manpower, machinery, and materials and finance only. Time and technology are also crucial. Technology has deep relation with manpower. Machines and materials as its subsets. Manpower is also the main factor for the competitiveness of the organisation.
5. Can management be seen as conducting only planning and controlling activities? Butm the role of management in managing operation has also transformed to that of providing a vision, strategic direction and leadership to people and managing change.
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