Importance of operations management in an organization

For example, in the car industry. Operations management refers to the design, operation and control of the transformation process that converts such resources as labour and raw materials into goods and services that are sold to customers.

Operation refers to the coordination of those activities in a business that are involved in combining inputs for the purpose of producing an output that is valued by consumers. Businesses adopting a cost leadership strategy commonly have standardised products The car manufacturer Kia is well known for being a cost leader.

Businesses can differentiate themselves from others by changing obvious aspects such as price, quality or performance but also in more innovative ways such as changing the technology used in the process, speeding up delivery time and building alliances.

Why Is Operation Management Important?

Interdependence with other key business functions The operations department brings together the materials and the activities needed for the production of goods and services to meet consumer demand. There are various reasons which makes operations management important.

Other businesses supply intangible non-physical products to customers. It also shares ideas across the business about how to improve processes or achieve cost savings to bring about best practice. Most businesses are supported by the functions of operations, marketing, and finance The major functional areas must interact to achieve the organization goals Role of Operations Management: The strategic role that operations management plays in successful organizational performance can be seen as more organizations move towards managing their operations from a value chain perspective which means the entire series of organizational work activities that add value at each step beginning with the processing of raw materials and ending with the finished product.

For example, a primary producer, such as a sheep farmer, will provide fleece to a wool manufacturer. Porsche focus on a differentiation strategy to set it apart from other cars in relation to design, marketing and technology.

For example, the banking industry sells financial services to customers and the retail industry sells retail products. For example, airlines will try to differentiate their product so as to attract consumers.

In this way the business will be profitable. Cost leadership Cost leadership refers to the strategies to produce goods or services at the lowest possible cost whilst they are still acceptable to customers.

What is the role of operations management in an organization & why it is important in companies?

Cost leaders and differentiation can exist in the same industry. Thus, the role of operations management and the operations manager is to ensure a smooth production process that contributes to the output of goods and services of an organization. Operations Management - Explained: And just as every organization produces something ,every unit in an organization also produces something.

Today, every successful organization recognize the crucial role that operations management plays as part of the overall organizational strategy to establish and maintain global leadership.Operations Management has a crucial role in an organization that aims to create profitability and sustainability.

Along with that, operations management respected the requirements of all the stakeholders, such as environment, society, shareholders, employees, suppliers and customers that have different perspectives which sometimes conflicting with each other.

Operation management ensures that an organization is conducting business at peak efficiency and ability. Operation management includes the development and use of resources that are necessary for a company to deliver goods and services to its customers.

Operation management professionals deal with. role of operation management aggregate planning scheduling materials requirement planning maintenance contror importance of operations management operations management is responsible for managing activities that are part of the production of goods and services their direct What is the role of operations management in an organization & why.

Management is the process, which combines and transforms various resources used in the operations subsystem of the organization into value added services in a controlled manner as per the policies of the organization. Thus, the role of operations management (and the operations manager) is to ensure a smooth production process that contributes to the output of goods and services of an organization.

Characteristics of Operation Management: An organizations core function; Exists In every organization whether Service or Manufacturing, profit or Not for profit. Why Operations Management is Important for a Company A White Paper Education Operations Management is a fundamental part of any organization.

It plays a vital role in the success of organization. It is the area of management which is concerned with creation of goods or services of a company.

Importance of operations management in an organization
Rated 0/5 based on 49 review