You are on page 1of 2

An Overview of Operation Management

Management of various operations with effectiveness and efficiently is known as
Operation Management.
The production phase of the overall system begins at the point at which capital is to
be converted into physical resources and ends at the point at which those resources
have been converted into goods or services. Because all the activities that take
place during that phase are interrelated, production can be said to be a subsystem
within the overall system. From this, it follows that the management of an
organization’s operations is the management of a subsystem.
The elements of that subsystem are all the tasks that must be performed in the
course of transforming capital goods and services. Some of those elements are
sequential in nature; that is, they must be carried out in a logical serial order. But
other elements of the production subsystem are concurrent in nature; that is, they
can be carried out at the same time.
Our goal is to portray the production subsystem and its management as a cohesive
whole. To attain this goal, it is necessary to describe the subsystem’s elements in a
congruous order and to point out the interrelationships of those elements. This
could be accomplished with little difficulty if all the elements were sequential. But
the presence of concurrent elements complicates our task because those elements
serve to create a multidimensional structure which cannot be readily depicted
verbally.
An appropriate way in which to begin is with a statement of the basic
responsibilities of those men and women who are accountable for an organization’s
operations. These responsibilities, expressed in abbreviated form in Figure 1-2, are
as follows:

Quality

Economy

Quality

Figure 1-2 Major concerns of operations personnel.


To produce a good or service in quantities and at times which will satisfy the
demand for the item.
To produce a good or service at the lowest possible cost.
To produce a good or service of satisfactory quality.

which may be either a good or a service. concerned personnel will have to carry out the following steps:  Ascertain the most economical work methods. concerned personnel will have to do the following:  Develop appropriate product specifications.  Apply methods which are designed to control the quality of future output.  Maintain conditions which are conductive to satisfactory quality.  Establish work standards.Production planning and control entails the following series of sequential steps:  Forecasting the future demand for a product. Finally. to maximize the probability that a produced good or service will be of satisfactory quality. .  Translating the forecast into an equivalent demand for various factors of production.  Introduce inspection procedures which will reveal the quality of past out.  Procuring the required factors of production.  Motivate employees to adhere to efficient work methods and to satisfy existing work standards.  Utilizing those factors of production to produce the product. To maximize the probability that a good or service will be produced at the lowest possible cost.