Essay On Operations Management

In today’s competitive world, there is a big emphasis by organization to provide products at cheaper rates with excellent quality. In order for the business to provide such facilities it has to have a strong coordination and synchronisation between its internal departments. Every business organisation has an operating function, which is known as “operations”. The main aim or goal of most organisations involves the production of products or services.

In larger context the term operations embraces all the activities within an organisation required to create goods or services that is to provide to its customers or clients.

Author Byron J. Finch, 2008 defines “Operations management is the management of the resources a business uses to create value”.

According to Raturi and Evans (2005) operations management is defined as “the business activity that involves the design, development, and maintenance of systems and processes that transform resources, such as raw materials, technology, and labour, into goods and services that meet customers’ needs.”

Slack and Lewis (2011) also defined operations strategy as “the total pattern of decisions which shape the long-term capabilities of any type of operation and their contributions to overall strategy, through reconciliation of market requirements and operations resources.”

In multinational organisation operations usually are considered to be a major functional area with people designated to manage its operations process, it is considered to be an important factor as it plays a pivot role in determining the organisation’s satisfaction level of customers. The mission of operation functions is usually articulated with growth, market share, profit and competitive edge.

In production sector, oper...

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...y the resources are utilised.

Considering the value chain in production and service sector, operations management manages the synchronisation of different activities of the supply chain in order to maximise its output of the firm by reducing the production cost from the procurement stage to the delivery stage. This enables the operation strategy to be in line with organisations business objective.

The similarity in the way operation management works in production sector and service sector, emphasis its importance of operation function. The measure of the productivity in service factor is more difficult as compared to production industry. The emphasis in service sector is the human resource and level of skills and knowledge of an individual.

It can be said that operations management have a big impact in managing the resources to achieve its organisation objectives.