Operations Management - the Administration of Business Practices

Operations Management

Kenya Peguese

May 1, 2018

MAN324

Mr. George Smith

Operations Management

        Operations management refers to the administration of business practices to create the highest level of efficiency possible within an organization. It is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization. Operations management involves utilizing resources from staff, materials, equipment and technology. Operations managers acquire, develop and deliver goods to clients based on client wants and the abilities of the company. Every business is managed through multiple business functions each responsible for managing certain aspects of the business, such as people, equipment, technology, information, and the resources needed for goods and services.

        One of the biggest goals of operation management is to keep operating costs low and increase profits. Operations management must oversee the buying of raw materials as well as quality control and maintenance.  Managing the supply chain is also a critical part of operations management. It is the responsibility of operations management to find suppliers that have the appropriate goods at the most affordable prices. These suppliers also need to be able to deliver the supplies on time. Operation management is also responsible for ensuring the product gets to the customers in a timely manner. Operation management also needs vendors that will deliver their products when needed.

        There are several key differences between the job functions of an operation manager, finance manager, and a human resource manager.  The main duties of an operation manager are to help to coordinate the activities of all the departments within a company. The operations manager needs to have vast knowledge in business, marketing, and as well as finance.  Operation managers “can also commonly perform a number of human resources management functions, such as assigning tasks, setting employee priorities and determining staffing requirements. Operation managers need to be able to work in sync with other departments and have excellent communication skills. Operations management plays a critical role in the organization and supply chain. Without OM there would be no products to sell. However, operations cannot work in isolation from other business functions. Operations must understand exactly what customers want and be able to ensure that sourcing can get the materials needed at the right price and at the right time to support product designs or offer alternative material options.