OPERATION MANAGEMENT IN BUSINESS

Operation Management in Business



Operation Management In Business

1.1

Importance of operational management

Operations management refers to the management techniques used in four dimensions which consists of planning, organizing, leading and controlling. The basic aim of operations management is to use the resources in an effective and efficient manner. By effectiveness we mean the best possible way to complete a task and efficiency is meant by producing with the least cost and with the least time. It is the backbone of the operations within any organization. The inputs which are the resources of the company must be processed in such a way that the maximum profits could be earned (Nidumolu, 1995).

Our IT company produces computer software, therefore we shall produce in such a way that the minimum time is taken for production of software. We will be promoting creativity and would allow the workforce to produce according to their own perspective, as far as we are getting our work done. There would be complete relaxation in the production activities. However, we will have check point at all levels so that we check their production activities.

The business objectives would be cost minimization and profit maximization, therefore the workforce must have this in mind. Production must be done in such a manner that both perspectives are taken into account and also acted upon.

1.2

Need to produce safely; on time; to cost; to quality and within the law

The operations manager is responsible for the utilization of company's resources and has to take into account all the factors such as safety, cost, time, quality and also compliance. The operation manager is responsible for all these elements, as it is within his domain that the resources are used in an efficient and effective manner (Lee, 2000).

Therefore, the cost and time would be covered under the efficiency part, as the aim within this component is to produce with the least possible time and cost, as far as the quality is maintained. On the other hand, the effectiveness covers the points regarding the safety and compliance, thus the operations manager must assure that the appropriate level of safety exists and the compliance is being met. However, the quality aspect is to be present in both the criteria of efficiency and effectiveness, as it is the uttermost priority of the operations controller to maintain quality and not compromise on quality.

There is huge significance of safety as far as cost is concerned. Due to lack of safety there are greater chances of accidents and as a result the company would have to bear the compensatory costs, therefore if the necessary precautionary measures are taken, the likely compensatory costs could be minimized. Taking safety measures shall be considered an investment for the company and would be an asset of the company (Peck, 2006).

1.3

Links between operations management and strategic planning

Strategic planning is to do with the long term objectives of the company and I would need to insure the long term success of my company and ...