Operation Management

Operation management is about the way an organisation manage to provide goods and services.

Operation management focuses on carefully managing the process to produce and distribute products and services.

Convert inputs into outputs(goods and services)




Responsibility of Operation Management
Operation management are expected to produce desired goods and services of the right standard in the right quantity at the right time and at minimum cost.

The roles of operation manager has been increased sine globalisation has brought competition among organisations and the managers are required to execute responsibility beyond the scope of regular job description.

 Importance of Operation Management:

1. Reduce the cost of products and services by being efficient.
2. Increase revenue through increased customer satisfaction in producing quality goods and services.
3. Reduce investment to produce the goods and services by being effective and innovative in the case of resources.
4. Operation management provide the basis for innovation by building a solid base of operation and knowledge.

Objective of Operation Management:

1. Quality
2. Speed
3. Dependability
4. Flexibility
5. Low cost

Responsibilities of Operation manager:

1. Logistic management: Operation manager must make sure that machine and equipment used have the ability to satisfy customers.
2. Budget/finance management: Management with finance department to approve budget for logistics.
3. Goal setting: Set goals to establish polices for other departments. (e.g. forecasting and planning sales promotion)
4. Communication: Help each part of organisation to work together.