OPERATION MANAGEMENT

Operation Management



Operation Management

Introduction

Operations management (OM), which considers the design and management of transformation processes in manufacturing and service organizations, is undergoing a sweeping transition reflecting the expanding boundaries of the OM function. Whereas in the past, the operations manager often assumed a functional role focused on improving efficiency within the four walls of the factory or service organization, today's operations manager faces a complex task in which success often hinges on securing and maintaining a value-added position within one or more global supply chains (Levitt, 2002, 33).

This new era of OM philosophy and practice is precipitated by the globalization of supply bases and marketplaces, advances in information technology (IT) software and hardware, and the widespread recognition and acceptance of supply chain concepts. These alterations of the business environment are enabling managers to redefine their operational strategies at the enterprise and network level, thereby providing significant opportunities for innovation and threats for those locked into the traditional functional perspective of OM.

The objectives of this chapter are to examine the current perspectives of OM and provide projections for its future development in the global economy. Toward this end, we define OM, discuss its decision-making scope, recap significant points in its historical development, differentiate between the functional and process perspectives of OM, identify the factors that are rapidly changing the role of the operations manager, and propose several key OM success factors for the future.

From a broad perspective, sport event management applies business management functions such as sales, marketing, operations, human resources, and risk management to an event with a sport focus. To be a successful event manager, a thorough understanding of these aspects of business is necessary. The event manager is a “jack of all trades” because he or she must have knowledge about the many aspects of sport management that are critical to any sport organization, as well as event management principles. For example, the event manager for a minor league hockey team needs to be educated in customer service, marketing, tickets, concessions, merchandise, budgeting, ice maintenance, risk management, and many other areas. He or she will also be working closely with all of the aforementioned departments to ensure each knows, understands, and executes their role toward the overall success of the event (Lee, 2004, 11).

Operations Management Decision Problems

The operations manager addresses a wide variety of decision problems in providing products and services to customers. These can be classified into three broad categories: strategic, tactical, and operational. Strategic decisions are broadly defined and specify the long-term competitive priorities the firm employs to satisfy its target markets and achieve its financial objectives. Included within the strategic decisions are plans detailing resource requirements and their alignment for achieving strategic objectives.

Strategic OM decisions must be coordinated with the other functional areas to ensure a consistent overall business strategy for the firm. The strategic planning horizon is typically three to eight years, which is reviewed annually or when a major shift in the business environment ...