Operations Management - Explained
What is Operations Management?
Written by J. Mance Gordon
Updated at April 21st, 2024
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What is Operations Management?
Operations management concerns the management of business process for the efficient utilization of materials, equipment, technology, human resources, etc., within an organization It emphasizes on efficient conversion of materials and labor into products and services so as to increase the firms profits. The teams strive to strike a balance between the costs and revenues of the firm for earning the maximum net operating profit.
Key responsibility of Operations managers include:
- Process management and improvement
- Inventory management
- Supply chain & logistics management
- Customer relationship management
Who are the Stakeholders Of Operations Management
Operations management has an impact on the five broad categories of stakeholders in any organization.
The five groups are:
- Customers
- Suppliers
- Shareholders
- Employees
- Society
What are the Objectives of Operations Management?
The general objectives of operations management are:
- quality,
- speed,
- dependability,
- flexibility, and
- cost.