What is Operations Management?
Important
 Operations management (OM) is the
administration of business practices to create
the highest level of efficiency possible within an
organization.
 It is concerned with converting materials and
labor into goods and services as efficiently as
possible to maximize the profit of an
organization.
 Operations management teams attempt to
balance costs with revenue to achieve the
highest net operating profit possible
Understanding Operations Management (OM)Q
 Operations management involves utilizing
resources from staff, materials, equipment, and
technology.
 Operations managers acquire, develop, and
deliver goods to clients based on client needs
and the abilities of the company.
 Operations management handles various
strategic issues, including determining the size
of manufacturing plants and project
management methods and implementing the
structure of information technology networks.
 Other operational issues include the
management of inventory levels, including
work-in-process levels and raw materials
acquisition, quality control, materials handling,
and maintenance policies.
 Operations management entails studying the
use of raw materials and ensuring minimal
waste occurs.
 Operations managers utilize numerous
formulas, such as the economic order
quantity formula to determine when and how
large of an inventory order to process and how
much inventory to hold on hand
  The combination of understanding and
coordinating the work of a company are central
to becoming a successful operations manager.
Operations and Supply Chain Management
 A critical function of operations management
relates to the management of inventory
through the supply chain.
 An operations management professional
understands local and global trends, customer
demand, and the available resources for
production.
 Operations management approaches the
acquisition of materials and the use of labor in
a timely, cost-effective manner to deliver
customer expectations.
 Another large facet of operations management
involves the delivery of goods to customers.
 Operations management also typically follows
up with customers to ensure the products meet
quality and functionality needs.
 Finally, operations management takes the
feedback received and distributes the relevant
information to each department to use in
process improvement.
Special Considerations
 Operations managers are involved in
coordinating and developing new processes
while reevaluating current structures.
 Organization and productivity are two key
drivers of being an operations manager, and the
work often requires versatility and innovation
 An MBA in operations management can give
someone a global perspective on industry
trends and an awareness of any financial
regulations and political uncertainties that can
affect an organization.
  It also gives someone a solid grasp of the
inherent complexities and the tools needed to
respond well to change.
What Is the Purpose of Operations Management
(OM)?
 Operations management is concerned with
controlling the production process and business
operations in the most efficient manner
possible.
 OM professionals attempt to balance operating
costs with revenue to maximize net operating
profit.
Responsibilities of om
 Operations management is prevalent in the
healthcare sector.
 The current healthcare system overuses
expensive, technological, and emergency-based
treatment.
 High costs from care often remain
uncompensated due to uninsured patients.
 A prevalence of services in expensive settings
creates a burden on taxpayers, health
insurance holders, and healthcare institutions
themselves

 Product Design
What Are Some Systems of OM?
 Forecasting
 Modern operations management revolves
around four theories:   Supply Chain Management

 business process redesign (BPR),  Delivery Management

 reconfigurable manufacturing systems,

 Six Sigma, Skills of OM

 Organizational Abilities
 and lean manufacturing.
 Coordination
  The goal of BPR is to help companies
dramatically restructure the organization by  People Skills
designing the business process from the ground
up.  Tech Savvy

 Reconfigurable manufacturing systems are

designed to incorporate accelerated change in
structure, hardware, and software components.

  Six Sigma is an approach that focuses on

quality. The word "six" references the control
limits, which are placed at six standard
deviations from the normal distribution mean.

 Lean manufacturing is a systematic elimination

of waste within the manufacturing process

What Is an Example of Operations Management?