Operations Management

Operations Management

Operations management (OM) is defined as the design, operation, and improvement of systems that create and deliver a company's primary products and services (McNamara, 1999). The effectiveness of OM is determined by the success with which the various components interact with each other and with the environment in which the organization operates. The daily activities carried out by organizations like product creation, development, production and distribution are generally associated with operations management.

Operations management managers must ethically identify potential solutions to increase the profitability or resolve an issue of operations, evaluate the solutions in terms of the broader goals and values of the organization, fairly implement the dominant solution, and motivate those involved to complete the tasks. Also it is important to assess the actual consequences and impact of the solution for the effectiveness of the organization.

Operations management confronts topics such as project, supply chain, and technology management. Management decisions can be divided into three broad areas of strategic (long-term), tactical (intermediate), and operational planning (short-term) decisions.

Many mangers do not understand operations or the importance of operations. Those who have entered operations management through other avenues of management like finance, strategy, or marketing must rely on others like plant managers, engineers, or marketing to be successful (Aquilano, Chase, & Jacobs, 2004, p. 15).

Technology and market changes force organizations and managers to respond rapidly to the competitive pressures that affect strategic decisions. Remaining competitive requires managers to understand finance, engineering, and marketing, but they must also understand the importance of operations.

Effective project management can enhance the speed and efficiency of how an organization manages internal changes, develops new products and services, and implements solutions to problems facing the organization.

Operations management also includes identifying, organizing, and assigning tasks and activities of a project. Ethical decisions are made when assigning tasks to ensure the employees are not being misled about specific project details or timelines. Trust, confidence, and time of highly skilled workers must be taken into consideration when project timelines are created. If a manager abuses this trust by having unrealistic timelines, the productivity and morale of the employees will suffer.

Supply chain system activities such as communication, inventory management, warehousing, and transportation of materials and finished goods, and facility

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