OPERATIONS MANAGEMENT

Impact of Operations Management on Decision Making

The Impact of Operations Management on Decision Making

Introduction

In the world of business there are many essential parts to a successful operation. Some may say that marketing, production and/or sales are the most important part of any business, but after studying the process of operation management, it is found to be the backbone of any business process. Operation management embodies all aspects of the business process and unites them to create an efficient resourceful procedure. In order to stand out and be a market leader a company needs to have a strong management for operational activities. Operation managerial work can be effective in terms of cost, quality, reliability, flexibility and responsiveness. This essay will give a brief explanation on Operation Manager (OM), importance of operational management, functions of operation manager, strategic decisions and factors for effective operational activity.

Discussion

A manager is someone who works with people and through coordinating with them accomplishes organizational goals (Robbins, Stagg, Coulter, 2003, p.10). But why employ OM? Though a relatively new field of research and still several evolving, many businesses employ it as a way to increase productivity and reduce error. OM allows companies to be more competitive by reducing unnecessary cost involved when resources are squandered. OM allows business to operate more efficiently. Operation management is the integration of all aspects of the business process. It was once said:All parts of the system must be constructed with reference to all other parts, since in one sense, all parts form one machine. Like any other machine the failure of one part to cooperate properly with the other parts, disorganizes the whole and renders it inoperative for the purpose intended - Albert EinsteinImportance of Operation Management:-"Operations management is concerned with creating, operating and controlling a transformation system which takes inputs of a variety of resources and produces outputs of goods and services which are needed by customers" (Naylor 2005.p.9). Operation management can benefit an organization in following ways:-

It can reduce the costs of producing products and services by being efficient.

It can increase revenue by increasing customer satisfaction through good quality and service.

It can reduce the amount of investment that is necessary to produce the required type and quantity of products and services by increasing the effective capacity of the operation and being innovative in how it uses its physical resources.

It can provide the basis for future innovations by building a solid base of operations skills and knowledge within the business (Slack N, Chambers S, Johnston R2004,p.7)This is the essential explanation of Operation management. If all parts of a business do not co-exist in a synchronized method then any progress made by any separate part are nullified by the inconstant or unsynchronized progress of another.

After the organization of a business has occurred, the next step is to further explore the company's mission. The Operation strategy should represent that of the company's mission, and successfully follow it. The goal of every business is to make money or produce a profit, and there are ...