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What is Operations Management
Operations management is the administration of business practices to create the highest level of efficiency possible within an organization. It is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization.
What does operations management involve?
Operations management is chiefly concerned with planning, organizing and supervising in the contexts of production, manufacturing or the provision of services. As such, it is delivery-focused, ensuring that an organization successfully turns inputs to outputs in an efficient manner. The inputs themselves could represent anything from materials, equipment and technology to human resources such as staff or workers.
Examples of the types of duties or specialist positions this encompasses are procurement (acquiring goods or services from external sources), managing relations with those involved in processes and improving a company’s sustainability with regard to their use of resources.
There are two key terms that can help answer the question of what operations management is more precisely: supply chain management and logistics. Operations management has firm foundations in both areas. For example, understanding global trends in supply chain management in order to meet client demand is often critical. With logistics the careful and considered use of resources, as well as cost-effectiveness, has become increasingly important in an era in which resources can often be in short supply and customer expectations have skyrocketed.
Skills required of an operations manager
There are strong parallels between the skills required for effective operations management and those needed in both logistics and supply chain management. Excellent organizational ability is crucial in successfully enhancing efficiency and driving productivity as an operations manager.
One must be able to understand the series of processes within a company to get them to flow seamlessly, and in this sense the role is directly related to supply chain management. Meanwhile, the coordination involved in setting up these processes in practice represents logistics; the combination of understanding and coordinating the work of a company are central to becoming a successful operations manager.
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