INTRODUCTION TO OPERATIONS MANAGEMENT

OPERATIONS PERFORMANCE

Submitted by: Ma. Christina D. Ladao

Operations Management

MBAN 2201 (Sat 12:00-3:00)

Submitted to: Mr. Erwin M. Caparas, MBA

Operations management is the role that converts the resources of the company (materials, labor)
into goods and services. That is why, for every organization, it is "the main reason for existence."
The main objective of an operation manager is to ensure the delivery of the goods in a timely
manner and to convert the raw materials into the finished products efficiently. Earlier, everybody
assumed that operations management was not that important to the organization, but later, it was
discovered that it was actually important to the functioning of the organization. It has been found
that the processing of raw materials for the manufacture and sale of the products, along with sales
management, is required, and this is achieved efficiently by managing the operations. It is a
complicated process for managing operations, so there is a need for in-depth experience to take
on the role of Operations Manager. The basic tasks of the Operations Manager include
formulating strategies, improving performance, procurement of materials and resources and
ensuring compliance.

Operations management is used for efficient company operations around the world. An example
of how operations are managed is one of the most popular stores, the SM Department Store and
how it manages its inventory system. I was with SM back in 1994 as a junior accountant.
Whenever the company faces some inventory issues, the company takes a variety of steps. First
of all, the management of the inventory department and the inventory system shall be reviewed
for potential errors. Immediate methods are then sought to correct these mistakes. This is just one
aspect of SM’s operations management. Similar steps are taken for all the other activities to
ensure the correct working of the system.

Operational performance has been commonly recognized as a key success factor for businesses
across a wide variety of industries. It is best defined as the level at which all business units in a
company work together to achieve key business objectives. Performance objectives are quality,
speed, reliability, flexibility and cost. There are several ways to assess the success of an
organization in order to evaluate if it is performing well. The most popular approach is to look at
their gross or net profit. However, this is not always a reliable way to assess the performance of
an organization. If handled correctly, high quality, high speed, high reliability and high flexibility
can not only offer their own external incentives, they can also save operational costs.