Preface: This is an abstract from one textbook. Since I am working for a project and assigned to run Operation section, so I want to learn more about Operation management. This is the start of it and hope can get more improvment under boss's leadership and support from team and even friends here.

What Is Operations Management?

Operations management is about the management of the processes that produce or deliver goods and services. Not every organization will have a functional department called ‘operations’, but they will all undertake operations activities because every organization produces goods and/or delivers services. Operations management has made a significant contribution to society by playing a role in areas such as increasing productivity, providing better quality goods and services and improving working conditions. Productivity has been increased through such measures as the use of technology and new production methods. Increased productivity permits the more efficient production of goods and services and so helps raise living standards. Better quality goods and services are available through the use of quality initiatives such as Total Quality Management (TQM). The rate of improvement in quality levels is reflected in such programmes as Six Sigma. Improved working conditions are an outcome of the realization that the contribution of people is vital to an organization’s success. Job design is used to help enable the full potential of employees.

1 Operations management is about the management of the processes that produce or deliver goods and services.

2 The operations system can be seen as a transformation process. It converts inputs known as transformed resources (classified as materials, information and customers) using transforming resources (classified as staff and facility) into finished goods and services.

3 An alternative to the functional perspective of an organization is a process view in which the organization is seen as consisting of a set of processes which link together to meet customer needs.

4 Service organizations can be classified by their tangibility (the extent to which they incorporate a physical thing you can touch). The way services are delivered can be classified by their simultaneity (the extent to which the service is produced and consumed at the same time).

5 Service operations can be denoted by front-office tasks which deal directly with the customer and back-office tasks which add value to the inputs of the service operation.

6 Operations management has an important strategic role in ensuring that the management of the organization’s resources and processes direct the organization closer to its long-term goals.

7 Technology plays a key role in the transformation of materials, customers and information for which operations is responsible.

 

	Decision Areas in Operations Management
No.	Decision area	Example decision
1	Operations Strategy	What strategy should be followed?
2	Process Types	How do we configure the process which will deliver our service to customers?
3	Layout Design	How do we organize the physical layout of our facilities and people?
4	Facility Design	What is the location of our operations facilities?
5	Process Technology	What role should technology have in the transformation of materials in the operations system?
6	Product and Service Design	What products and services should the organization provide?
7	Process Design	How do we design the service delivery process?
8	Job Design	How do we motivate our employees?
9	Planning and Control	How do we deploy our staff day-to-day?
10	Capacity Management	How do we ensure that our service is reliably available to our customers?
11	Inventory Management	How can we keep track of our inventory?
12	Lean Operations and JIT	How do we implement lean operations?
13	Enterprise Resource Planning	How do we organize the movement of goods across the supply chain?
14	Supply Chain Management	What benefits could e-procurement bring to our operations?
15	Project Management	How do we ensure our projects finish on time and within budget?
16	Improving Performance	How can we implement a TQM programme?
17	Measuring Performance	What role could Statistical Process Control (SPC) have in our operation?

 End.