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.