Operations management

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Operations management is an area of business that is concerned with the production of goods and services, and involves the responsibility of ensuring that business operations are efficient and effective. It is also the management of resources, the distribution of goods and services to customers, and the analysis of queue systems.

APICS The Association for Operations Management also defines operations management as "the field of study that focuses on the effective planning, scheduling, use, and control of a manufacturing or service organization through the study of concepts from design engineering, industrial engineering, management information systems, quality management, production management, inventory management, accounting, and other functions as they affect the organization" (APICS Dictionary, 11th edition).

Operations also refers to the production of goods and services, the set of value-added activities that transform inputs into many outputs.[1] Fundamentally, these value-adding creative activities should be aligned with market opportunity (see Marketing) for optimal enterprise performance.

Contents

The origins of Operations Management can be traced back to the Industrial Revolution, the same as Scientific Management and Operations Research. Adam Smith treats the topic of the division of labor when opening his 1776 masterpiece: An Inquiry into the Nature and Causes of the Wealth of Nations also commonly known as The Wealth of Nations. The first documented effort to solve operation management issues comes from Eli Withney back in 1798, leading to the birth of the American System of Manufacturers (ASM) by the mid-1800s. It was not until the late 1950's that the scholars noted the importance of vieweing production operations as systems.[2] [3]


Historically, the body of knowledge stemming from industrial engineering formed the basis of the first MBA programs, and is central to operations management as used across diverse business sectors, industry, consulting and non-profit organizations.

  • Control by creating and maintaining a positive flow of work by utilizing what resources and facilities are available
  • Lead by developing and cascading the organizations strategy/mission statement to all staff
  • Organize resources such as facilities and employees so as to ensure effective production of goods and services
  • Plan by prioritizing customer, employee and organizational requirements
  • Maintaining and monitoring staffing, levels,Knowledge-Skill-Attitude (KSA), expectations and motivation to fulfill organizational requirements
  • Performance Measures for the measurement of performance and consideration of efficiency versus effectiveness[4]

The following organizations support and promote operations management

  1. ^ Operations Management: in a week, Sean Naughton, (2002) Chartered Management Institute, ISBN 0-340-84966-5
  2. ^ An historical perspective on Operations Management, James M. WIlson, (1995) Production and Inventory Management Journal
  3. ^ Operations Management for Competitive Advantage, Chase, Aquilano, et. al., (2001)
  4. ^ Operations Management: in a week, Sean Naughton, (2002) Chartered Management Institute, ISBN 0-340-84966-5

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