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Definitions of Operations management

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Operations management refers to the administration of business practices to create the highest level of efficiency possible within an organization. Operations management is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization.

Operations management is an area of management concerned with overseeing, designing, and controlling the process of production and redesigning business operations in the production of goods or services. It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed, and effective in terms of meeting customer requirements.

According to the United States Department of Education, operations management is the field concerned with managing and directing the physical and/or technical functions of a firm or organization, particularly those relating to development, production, and manufacturing.

Operation Management Decisions

Customer Satisfaction begins with product and service design. Moreover, decisions are made in this area impact operations and the organization’s overall success. Process selection and capacity planning impact the ability of the product system to deform and to satisfy customers. Flexibility, Production time, and cost are key considerations in process design. Process selection and layout are closely related. Layout decisions are influenced by decisions made in product and service design. Product and service design typically has strategic implications for the success and prosperity of an organization. Furthermore, it has an impact on future activities. Consequently, decisions in this area are some of the most fundamental that managers must make. wps.prenhall.com

In Operations Management decisions quality is the highest objective, Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. Some goals of quality programs include:

Fitness for use. (Is the product or service capable of being used?) Fitness for purpose. (Does the product or service meet its intended purpose?) Customer satisfaction. (Does the product or service meet the customer’s expectations?) Conformance to the requirements. (Does the product or service conform to the requirements?) Quality Management helps to maintain the quality of the product and helps to avoid defects in the product and services in the future. www.slideshare.net

Due to the inherent properties of the market, Companies are required to be very flexible. Each quarter new technologies, solutions and cutting edge products are introduced. That’s why it is critical to be able to quickly adapt to changes. In this case incorporating new technologies in all the processes is invaluable and helps to achieve flexibility. Process Capacity Design has the capacity to ensure meeting all the demands of the future market. www.slideshare.net

As it is the era of globalization and every company is trying to be a global company, It is necessary for companies to select the locations for the launch of their products as well as the location of storing an operating. Now a days most of the companies operate in many countries. To compete technologies, companies carry out researches in technologically advanced countries. Selecting better locations ensure the better future and growth in future business of a company. smallbusiness.chron.com

Layout planning is deciding the best physical arrangement of all resources within a facility. Facility resource arrangement can significantly affect productivity. Layout design is the backbone of any company. It helps in smooth flow of the company. Layout planning is organizationally important for an efficient future operations. Marketing is affected by layout especially when clients come to the site Human resources is affected as layout impacts people

Finance is involved as layout changes can be costly endeavors www.business-software.com

The strength of a company lies in its employees. That’s why it is required to provide them the best working environment and growth opportunities. Several programs can be implemented to encourage them to submit their own ideas and contribute to the company’s growth. A better implementation of job design can be helpful in future growth. Effective manpower planning helps in cost reduction and better working in future. www.slideshare.net

Supply chain management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply chain management involves coordinating and integrating these flows both within and among companies. To remain competitive, small firms have to offer superior quality goods at the lowest prices possible. The need to minimize product costs makes effective supply chain management vital. There are costs involved in every process of the product life cycle, and it is the responsibility of management to ensure that these costs are kept low, so the company can continue to pass along these savings to the consumer. The supply chain management helps in future to

Reduced Costs
Increased Efficiency
Increased Output
Increased Profits


Inventory management is a good practice for any company. If you are not keeping a watchful eye on your inventory or counting stock regularly, you are setting yourself up for potential inventory errors and challenges. Proper inventory management really can make or break your business! A good inventory management strategy improves the accuracy of inventory orders, leads to a more organized warehouse, helps to save time and money, increases efficiency and productivity and keeps your customers coming back for more.


Scheduling is the process of arranging, controlling and optimizing work and workloads in a production process or manufacturing process. Scheduling is used to allocate plant and machinery resources, plan human resources, plan production processes and purchase materials. The scheduling helps in future in Process change-over reduction, Inventory reduction, leveling, Reduced scheduling effort, Increased production efficiency, Labor load leveling, Accurate delivery date quotes and real time information.

Maintenance is a crucial element of sustainability. Providing training and development to the employees. It will help them to be in touch with all new technologies and also helpful in the high level of well trained staff.


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