Operations Function

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1. Introduction

An organization’s operations function is concerned with getting things done i.e. producing goods and/or services for customers. Effectively, the main objective of the operations function is to produce those goods and services required by customers whilst managing resources as efficiently as possible.

2. RELATINSHIP WITH OTHER ORGANIZATIONAL FUNCTIONS

The operations function lies at the heart of any organization and interacts with all the other functions. Although the various organizational functions involve different activities, they must interact to achieve the goals of the organization. This therefore implies that Operation Management decisions are not made in isolation. Rather, each decision is intertwined with other organizational functions following the strategic direction developed at the top level of the organization.

In a nutshell, many of the decisions made by operations managers are dependent on information from the other functions. At the same time, other functions cannot be carried out properly without information from operations as detailed below:

1. Finance: The finance function ties all departments together with monetary measurements that tell whether the company is making money. They also regulate the acquisition of funds to keep the business operations going, and investing money received wisely. Finance managers need to work closely with the operations function to be able to determine the need for capital investments, make-or-buy decisions, plant expansions, or relocation of business operations. On the other hand, operations managers cannot make large financial expenditures without understanding financial constraints and methods of evaluating financial investments. It is essential for these two functions to work together and understand each other’s constraints.

2. Sales and marketing: The sales and marketing function focuses on maintaining and attracting customers to the company's products and...
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