Operations management is the administration of business practices to create the highest level of efficiency possible within an organization. It is concerned with designing and controlling the process of production and redesigning business operations. Operations management involves utilizing resources from staff, materials, equipment, and technology to acquire, develop, and deliver goods to clients based on client needs and the abilities of the company. The key features of operations management include:
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Efficiency: Operations management is concerned with ensuring that businesses are efficient in using resources to meet customer requirements.
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Production: Operations management is concerned with managing an entire production or service system which is the process that converts inputs (in the forms of raw materials, labor, consumers, and energy) into outputs (in the form of goods and/or services for consumers) .
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Processes: An operations manager is responsible for implementing and maintaining the processes that an organization uses. This includes software and other programs that the organization uses to manage its operations.
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Strategic Planning: Operations management requires management of both the strategic and day-to-day production of goods and services.
Operations management is one of the major functions in an organization along with supply chains, marketing, finance, and human resources. It is a multi-tiered, “big picture” approach to managing an organizations activities and processes with constant analysis to determine what’s working and what’s not. The importance of operations management lies in ensuring efficient production processes, optimal resource utilization, and ultimately, the achievement of desired business goals.
