introduction to operations management

• Operations management


  An area of management that refers to developing, managing and improving the production process
• Operations management is one of the four business functions (HR, Finance, Marketing, Operations)
• All businesses, regardless of size or sector, have operations management
• Operations management applies to all sectors of industry (primary, secondary, tertiary, quaternary)
• Operations management applies to both goods (tangible products) and services (intangible products)
• Input-output model


  Explains how all businesses work - taking inputs (factors of production), processing them, and producing outputs (goods or services)
• The 'processing' stage of the input-output model is what operations management is about
• Interdependence of business functions


  The four business functions (HR, Finance, Marketing, Operations) rely on and work together towards common goals
• Examples of interdependence between operations management and other functions

  • HR - Hiring suitable people for production
  • Finance - Setting realistic production budgets
  • Marketing - Cooperating on product features and promotional strategies
• Sustainability


  The ability to maintain a business's financial well-being, while avoiding environmental depletion and benefiting the local community
• Sustainability should underpin all business functions, including operations management
• Operations management should find sustainable ways of providing goods/services, making profits, and minimizing environmental impact