Category Archives: Introduction to Operations Management

What-Is Operations Management?

What-Is Operations Management?

An Organizational Perspective

Operations management, as is the case with every functional area within an organization can be defined from several perspectives: one being with respect to its overall role contribution within an organization; the other focusing more on the day-to-day active
that fall within its area of responsibility. From an organizational perspective, operas management may be defined as the management of the direct resources that are require' to produce and deliver an organization's goods and services. The marketplace-the firm's customers for its goods and services--determines corporate strategy of the firm. This strategy is based on the corporate mission, an essence reflects how the firm plans to use all of its resources and functions (market finance, and operations) to gain an advantage over its competition. The operations star specifies how the firm will employ its production capabilities to support its corporate edgy. (Similarly, the marketing strategy addresses how the firm will ell and distribute goods and services, and the finance strategy identifies how best to utilize the fins resources of the firm, as shown in Exhibit 1.1.) Within the operations function, management decisions can be divided into three t areas:

  • Strategic (long-range) decisions.
  • Tactical (medium-range) decisions.
  • Operational planning and control (short-range) decisions.



AT 8:30 A.M sharp, the gavel comes down on the room table calling the  daily performance review meeting to order at technology's main manufacturing plant and in Waterbury. Massachusetts. s and manufactures software and at enable professionals in the video animation. special effects, and industrializes to digitally manufacture. Avid is an industry leader in sales and quality, and has even scars award for the special effects produced. which is Pillsbury headquarters.

 The purpose or clearinghouse for each of the different manufacturing operations to report on performances, to establish priorities, and to  identify both current and potential mar- may prevent them from meeting their objectives. When problems do arise, they resolved and/or courses of action identified, because all of the involved individuals us meeting provides everyone with the same information at the same time, like communications and delays. Performance measures that are reported at  products that have been completed and shipped, as well as the comps that are scheduled for shipment during the coming week. Quality pe res also are reported along with inventory levels and product manufacturing there can be 15 to 20 people attending the meeting. This meeting is management meeting conducted under the auspices of Paul Seneca, Manufacturing marketing and finance managers frequently managers typically focus on the completion of products to meet currents; the finance managers focus on manufacturing costs and meeting an overall revenue perspective. The attendance of marketing and finance res the importance of a cross-functional, integrated approach that Ishim competitive environment. Today's meeting also includes managers who participate through the use of teleconferencing technology. of the reports have been made and the current issues addressed and rabies shed, the gavel once more comes down on the table 0 adjournments return to their respective areas to focus on the work for that day.

Introduction to Operations Management

Chapter Objectives

• Introduce and define operations management (OM) in terms of its contribution to an organization and the activities it involves.

• Describe how operations management contributes to the overall betterment of society.

• Present operations management as a function that addresses issues in both manufacturing and services.

• Show how operations management is gaining more recognition both internally and externally to an organization.

• Demonstrate how the operations management function interact with the other functional areas within an organization.

• Present a brief history of operations management as a field and evolution to its current role in an organization