Operations Management Overview

Operations management is responsible for all aspects of creating goods and services, managing resources such as materials, machines, technology, and people.

The foundations include Planning, Process, Efficiency, Cost Control, Quality, Continuous Improvement, Technology, and Profitability.

Operations managers ensure the company performs to its best potential, focusing on productivity, efficiency, and cost reduction.

Operations managers must forecast, plan, and adjust to optimize processes based on conditions.

Efficiency involves troubleshooting bottlenecks and downtimes to create optimal productivity.

Cost Control is crucial as production is a major part of a company’s cost structure.

Good quality control is necessary to maintain customer satisfaction and the company’s reputation.

Continuous Improvement refers to having processes in place to consistently seek better ways of doing things.

Well-used technology helps keep a company ahead of the curve in operations.

The Sumerians tracked inventories, transactions, and taxes as early forms of operations management.