Operations management is defined as a systematic transformation process that converts a set of inputs into useful outputs.
An operations system is defined as one in which several activities are performed to transform a set of inputs into a useful output using a transformation process. These inputs and outputs can be tangible, as in the case of raw materials and physical products, or intangible, as in the case of information and experiences. Viewed in this manner, we can say that manufacturing and service systems could be broadly classified as operations systems.
Operations management is a systematic approach to address issues in the transformation process that converts inputs into useful, revenue-generating outputs.
It is a systematic approach that involves understanding the nature of issues and problems to be studied; establishing measures of performance; collecting relevant data; using scientific tools, techniques, and solution methodologies for analysts; and developing effective as well as efficient solutions to the problem at hand. Therefore, for successful operations management, the focus should be on developing a set of tools and techniques to analyze the problems faced within an operations system.
The operations management addresses various issues faced by an organization. These issues vary markedly in terms of the time frame, the nature of the problem, and the commitment of the required resources. Simple problems include deciding how to re-route jobs when a machine breaks down on a shop floor, or how to handle a surge in demand in service system. On the other hand, and what types of products and services to offer to the customers require greater commitment of resources and time. Operations management provides alternative methodologies to address such wide-ranging issues in an organization.
Transformation processes are central to operations systems. The transformation process ensures that...
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