Operations Management :

A critical responsibility of every

manager

At the most fundamental level operations management is about

getting day to day work done

quickly

efficiently

without errors

at low cost

To make processes work in right way

Additional feature

helping companies create improvements in customer service and

reduction in cost .

Operations Management :
A critical responsibility of every
manager

To have innovations in operations

new and better ways of doing the day to day work

Managers try to stimulate growth through

technology investment, acquisitions, major market
campaigns etc.

Innovations in operations are relatively reliable

and low cost.

To out-operate the competitors

by offering lower prices and better products and services

Operations Management :
A critical responsibility of every
manager

To craft efficient and effective operations

Efficiency means doing something at lowest possible

cost

Effectiveness means doing the right thing to create

most value for the company
Often maximizing efficiency and effectiveness at the
same time create conflict between the two goals.

Example

At the customer service centre

efficiency means to use lowest possible people at the

counter

and being effective means to minimize the amount of time

Operations Management :
A critical responsibility of every
manager

Related to efficiency and effectiveness is the concept

of value which can be metaphorically defined as
quality divided by price.

If you can provide the customer with

But if you can provide customer

better quality product at the same price the value has

gone up
better quality product at lower price then value goes way
up.

Through operational management managers can

achieve high levels of value.

Operations Management :
A critical responsibility of every
manager

Reasons to study operations management:

A business education is incomplete without an

understanding of modern approaches (a way of dealing with a
situation or problem) to managing business

Organisations offer some products or services

With OM you are exposed to modern approaches to do this

effectively

Operational management provides a systematic way of

looking at organisational processes (sequence of operations)

By using analytical thinking to deal with real world problems

And sharpening understanding of the world

Operations Management :
A critical responsibility of every
manager

Reasons to study operations management:

Operations management offers interesting career

opportunities

The concepts and tools of OM are widely used in

managing other functions of a business

Mangers have to plan work, control quality and ensure productivity

Of individuals under their supervision

Employees must know how operations work to effectively perform

their jobs