Operational management

Operational management

 

 

It is an area of business concerned with the production of goods and services, and involves the responsibility of ensuring that business operations are efficient in terms of using as little resource as needed, and effective in terms of meeting customer requirements. It is concerned with managing the process that converts inputs (in the forms of materials, labor and energy) into outputs (in the form of goods and services). This Management aims to increase the content of value-added activities in any given process. Fundamentally, these value-adding creative activities should be aligned with market opportunity (see Marketing) for optimal enterprise performance.

Operations Management programs typically include instruction in principles of general management, manufacturing and production systems, plant management etc.

 

 

 

Text Box: Resource Inputs   -Material   -Capital   -People   -Information Text Box: Transformation Process Text Box: Obtain and store raw materials and resources Text Box: Allocate and schedule people and equipment Text Box: Create finished goods and services Text Box: Product Outputs   -Goods   -Services

 

 

 

 

 

 

 

 

 

 

 

 


 

                                                   Planning                Feedback       Controlling

 

 

Text Box: Operations Management Text Box: Managerial decision making and problem solving

 

 

 

 

 

 

Operations Management: Managing the transformation of resource inputs into product into outputs (Source: Schermerhorn, 1989, P482)