Levels of Operations Management - Explained
What are the Levels of Operations Management
Written by J. Mance Gordon
Updated at April 9th, 2022
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What are the Levels of Operations Management
The organization of operations management can be categorized into three specific levels:
- strategic/top level/longterm management
- Tactical/functional/medium term/middle level management
- Operational/short-term management
What is Strategic Management?
Strategic management is high-level management of the organization. It generally encompasses long-term decisions. Some examples include:
- Products to make (product development)
- Make or buy decisions
- How to make products (process and layout decisions)
- How much to procure
- Production site location
- How much capacity is needed. (high level capacity decisions)
What is Tactical Management?
Functional management concerns the specific functions or departments within the organization. It generally has mid-term implications (1-3 years). Examples include:
- labor resources and planning
- inventory production and capacity planning
- inventory logistics
What is Operations-Level Management?
Operational-level management concerns the lower-level decisions that affect daily operations.