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  Category: Articles » Business » Article
 

Operations Management




By Ismael D. Tabije

Operations Management is an area of business that is concerned with the production of goods and services, and involves the responsibility of ensuring that business operations are efficient and effective. It also is the management of resources and the distribution of goods and services to customers.

"Operations" also refers to the production of goods and services, the set of value-added activities that transform inputs into many outputs. Fundamentally, these value-adding creative activities should be aligned with market opportunity for optimal enterprise performance.

Operations Management is the application of the guidelines and tasks set by the company to meet the customers' standards of satisfaction at the same time upholding the company's administrative standard of excellent performance.

Basically, Operations Management's main function is to organize and control the foremost business activity which is supplying goods and services to the customers while maintaining quality products and services.

Organizations

A number of professional organizations have been formed to promote the operations management profession.

Institute for Operations Research and Management Sciences [INFORMS] has a subdivision called The Manufacturing and Service Operations Management Society [MSOM]. Whose objective is to promote the enhancement and dissemination of knowledge, and the efficiency of industrial practice, related to the operations function in manufacturing and service enterprises.

Another organization, Production and Operations Management Society (POMS), is an international professional organization representing the interests of POM professionals from around the world.

A third organization, The Association for Operations Management (APICS - the acronym comes from the original name: American Production and Inventory Control Society) defines operations management as "the field of study that focuses on the effective planning, scheduling, use and control of a manufacturing or service organization through the study of concepts from design engineering, industrial engineering, management information systems, quality management, production management, inventory management, accounting, and other functions as they affect the organization" (APICS Dictionary, 11th edition).

Origins

Historically, the body of knowledge stemming from industrial engineering formed the basis of the first MBA programs, and is central to operations management as used across diverse business sectors, industry, consulting and non-profit organizations

Copyright 2007 Ismael D. Tabije
 
 
About the Author
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