what is operations management
SUMMARY ANSWERS TO KEY QUESTIONS
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Operations management is the activity of managing the resources which are devoted to the creation and delivery of services and products. It is one of the core functions of any business, although it may not be called operations management in some industries.
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Operations management is concerned with managing processes. And all processes have internal customers and suppliers. But all management functions also have processes.
Therefore, operations management has relevance for all managers.
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Why is operations management important in all types of organization?
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Operations management uses the organization’s resources to create outputs that fulfil defined market requirements. This is the fundamental activity of any type of enterprise.
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Operations management is increasingly important because today’s business environment requires new thinking from operations managers.
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What is the input–transformation–output process?
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All operations can be modelled as input–transformation–output processes. They all have inputs of transforming resources, which are usually divided into ‘facilities’ and ‘staff ’, and transformed resources, which are some mixture of materials, information and customers.
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Most operations create and deliver a combination of services and products, rather than being a ‘pure’ service or ‘product’ operation.
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What is the process hierarchy?
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All operations are part of a larger supply network which, through the individual contributions of each operation, satisfies end customer requirements.
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All operations are made up of processes that form a network of internal customer–supplier relationships within the operation.
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End-to-end business processes that satisfy customer needs often cut across functionally based processes.
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Check and improve your understanding of this chapter using self-assessment questions and a personalized study plan, a video case study, and an eText – all at www.myomlab.com.
❯
●
Operations management is the activity of managing the resources which are devoted to the creation and delivery of services and products. It is one of the core functions of any business, although it may not be called operations management in some industries.
●
Operations management is concerned with managing processes. And all processes have internal customers and suppliers. But all management functions also have processes.
Therefore, operations management has relevance for all managers.
❯
Why is operations management important in all types of organization?
●
Operations management uses the organization’s resources to create outputs that fulfil defined market requirements. This is the fundamental activity of any type of enterprise.
●
Operations management is increasingly important because today’s business environment requires new thinking from operations managers.
❯
What is the input–transformation–output process?
●
All operations can be modelled as input–transformation–output processes. They all have inputs of transforming resources, which are usually divided into ‘facilities’ and ‘staff ’, and transformed resources, which are some mixture of materials, information and customers.
●
Most operations create and deliver a combination of services and products, rather than being a ‘pure’ service or ‘product’ operation.
❯
What is the process hierarchy?
●
All operations are part of a larger supply network which, through the individual contributions of each operation, satisfies end customer requirements.
●
All operations are made up of processes that form a network of internal customer–supplier relationships within the operation.
●
End-to-end business processes that satisfy customer needs often cut across functionally based processes.
❯
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