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Operations Management

Operations Management is the action of supervision of the assets which create and distribute goods and services. Operations can be one of several meaning i.e. marketing, finance, personnel within the organization. The operations function can be described as that part of the organization dedicated to the production or delivery of goods and services. This means all organizations undertake operations activities because every organization produces goods and/or services. Organizations can be categorized in two broad categories i.e. manufacturing or service. Manufacturing organizations generate physical, tangible items which can be piled up as inventory before delivery to the customer. Service organizations create intangible items that cannot be produced ahead of time.

Operations Management The operations function plays an key function in the formulation and delivery of the organization’s policy. Market circumstances have changed from a mass production era with an emphasis on high degree, low charge production to an environment demanding performance on measures such as quality and speed of delivery as well as charge. In accumulation the rapid pace of change in markets means the basis of how the organization will compete may change quickly over time. Operations should spotlight on definite potential that give it a competitive perimeter which may be termed viable precedence. Four operations precedence or measures of these capabilities can be named cost, era, excellence and flexibility.


If an organization is challenging on cost then it is indispensable that it keeps its cost base lesser than the opposition. Then it will moreover formulate further return than opponent, if cost is alike, or gain market share if price is lesser. Cost is also vital for a strategy of provide a creation to a market position, which contender cannot provide. Thus cost propinquity (i.e. to ensure costs are close to the market average) is important to maximize profits and better competitors from ingoing the market. The major classes of cost are staff, amenities (including overheads) and material with the utmost scope for cost reduction lies with reduction of the cost of materials. A comparatively small proportion of costs are usually assigned to direct effort.