WHAT IS OPERATIONS MANAGEMENT

Many governments, for various reasons, do not perform as they should to offer goods and services to
the people.

Given the competitive nature of the business sector, the cost and time of production, as well as the
quality of the goods and/or services provided, are all crucial. As a result, many strategies are
developed and adopted to stay ahead of the competition.

Among the tactics utilized by the businesses that have survived are operations and quality
management.

Definition

Barndt and Carvey (1982: 1) define operations management as the process of planning, organizing,
and controlling operations to reach objectives with efficiency and effectiveness. They view operations
as processes to transform resources to create a result in the form of a product or service.

Origin of Operational Management

Operations management was traditionally known as production management, indicating

its manufacturing roots. It all started with the division of labor, which dates back to the time of
ancient craftsmen, but it wasn't until the seventeenth century that the concept of interchangeability
of parts was added, which sparked the industrial revolution.

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As the developed world's economies began to shift toward a service-based economy, all corporate
functions, including product management, began to merge. The service side began by applying
product management ideas to the planning and organization of processes, to the point where
operations management made more sense.

The Ten Principles of OM by Randall Schaeffer

Randall Schaeffer is an industrial philosopher and a frequent conference speaker with extensive
experience in manufacturing and operations management.

Reality: Operations management should concentrate on the problem rather than the
techniques, as no single instrument can provide a universal answer.
Organizing: Manufacturing processes are interrelated and require organization. To get a
similar result in profitability, all factors must be predictable and consistent.

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Fundamentals: The Pareto rule applies to operations as well: a tight adherence to correctly
preserving records and disciplines accounts for 80% of success, while applying new approaches
to processes accounts for just 20%.
Accountability: Managers are expected to set the rules and benchmarks, specify their
subordinates' tasks, and check on their goals regularly. Only in this manner would the workers
put out the required effort.
Variance: Process variation must be promoted since, when properly managed, it may be a
source of creativity.
Causality: Problems are the manifestations of underlying causes. The same problems will
resurface unless the root causes are addressed.
Passion That is Controlled: Employee passion can be a major engine of company growth,
and managers may instill it if it does not come naturally.
Humility: Rather than wasting money on costly trial and error, managers should recognize
their limitations, "seek support, and move on."
Success: What constitutes success will evolve, but always keep the client in mind. All of the
other principles must be revisited regularly to maintain them.
Change: There will always be new theories and answers, so you should accept change and
manage for long-term stability rather than sticking to one or the other.

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