OPERATIONS MANAGEMENT

Operations Management in Business



Operations Management in Business

Task One

Importance of Operational Management

Operation management is referred to administering the activities of a business in order to make organizational processes more efficient. Its main purpose is to convert raw materials and labor into finished goods and services in an efficient and effective manner so that firm could attain maximum profits (highered.mcgraw-hill.com, 2007, n.d.).

The operational management plays a vital role in the organization. The activities of operational management include designing products and services, election of process of production, electing and managing technical aspects involved in the process, designing of system of work, planning location involved in the process, planning of facilities utilized in the process, and improving the products and services produced by organization. The main functions of operation management are estimating, projection of capacity, arranging activities, handling of stocks, ensuring quality level, encouraging workers, making decisions pertaining to allocation of resources, and many more.

The operational management is important to both organization and society as society extensively utilizes the goods and services produced by the organizations. Operation management is the process that is engaged in the production activities. These operations are the source of provision of services for the creation of goods. It is undoubtedly one of the core functions of an organization. Every other function of an organization is related to this process. As per research, more than half people are working in this field in USA. It is comprised of adequately higher portion of assets in majority of businesses. This is the function, which improvises the productivity and is used for measuring organization's efficiency level and improvises quality of the goods as produced by the firm for sustaining the organization's competitive level and customers attention (Rao, S.S., 2010, n.d.).

The role of Operations Management in attaining Strategic goals

In order to satisfy the stakeholders of an organization such as customers, suppliers, employees, and society, an organization must produce safely and as per scheduled arrangements in order to achieve quality at minimum cost. The safety factor can be achieved by training employees and ensuring adequate safety measure at work place during production. Every task pertaining to operations and productions must take place in timely manner as per the planned product design, process design, facility design, and development phase particularly. All of these activities are necessary for attaining maximum profits.

Link between Operations Management and Strategic Planning

The strategic plan is consist of organization's objectives and processes used to attain those goals. The operation management is related to performing set tasks and responsibilities as per each department's role by utilizing assigned resources. The strategic plan of an organization should utilize a bottom-up approach that begins from structuring the cost associated to the development of a product, analyzing the product flow, and the supply chain procedures. Since the operation manager in each division applies these strategic plans, therefore, the organization should concentrate on personnel involved in operation management rather than strategic goals as a whole. The all necessary information in this approach is passed on from manufacturers, sales ...