Operations Management, Operational Excellence, 3 ways of Bridging Strategy and Execution
Operations Management (OM) is a critical area of management that plays a pivotal role in organizations. It involves overseeing, coordinating, and designing business processes to achieve operational excellence. OM is concerned with efficiently converting materials and labor into goods and services. It aims to create the highest level of efficiency within an organization. The key aspects of OM include:
OM is about optimizing processes, managing resources, and aligning operational activities with strategic objectives. It contributes significantly to an organization’s success by driving efficiency and effectiveness. The ultimate goal of OM is to maximize the organization’s profit. This involves balancing costs (inputs) with revenue (outputs).
Operations management directly involves overseeing the operations process, including design, planning, control, and performance improvement. It efficiently transforms resources into high-quality goods or services. Additionally, operations managers interact with counterparts in other functional areas (such as marketing, human resources, and finance) whose roles impact operations. By measuring actual outputs against planned operational targets, operations managers maintain control and drive efficiency.
duties and responsibilities of operations management include:
These key duties and responsibilities align with the managerial functions of planning, organizing, directing and controlling:
Operations Management integrates seamlessly with the managerial functions, ensuring efficient and effective execution of organizational goals. By aligning OM practices with these functions, businesses achieve operational excellence and drive success.
OM Strategic and Operational Aspects
Operations management has both strategic and operational aspects.
Operations management aims to create a unique production strategy that satisfies organizational needs while optimizing efficiency in manufacturing and service delivery
Operations Management Decisions
Operations management decisions play a crucial role in ensuring efficient production and delivery of goods and services within an organization. It involves making decisions across various dimensions to optimize processes and achieve strategic goals. These decision dimensions include:
OM decisions are guided by operations strategy. For instance, capacity planning aligns with business growth goals. OM decisions impact operations systems, which, in turn, influence future strategic choices. Operations systems execute the chosen strategies. They facilitate smooth production, delivery, and quality control. OM decisions impact operations systems, which, in turn, influence future strategic choices. OM decisions are the tactical steps taken to achieve strategic objectives. By harmonizing these decisions with operations strategy and leveraging efficient operations systems, organizations optimize their processes and deliver value to customers.
- Resource Utilization: Ensures that resources are used effectively. This includes managing materials, labor, and technology. The ultimate goal is to maximize profit by balancing costs with revenue.
- Process Streamlining: Streamlines processes across the entire value chain, from production to delivery. Smooth operations enhance customer satisfaction and overall performance.
- Strategic Alignment: Acts as a bridge between strategic intent (organization’s goals) and operational execution. It ensures that the organization efficiently delivers value to stakeholders.
OM is about optimizing processes, managing resources, and aligning operational activities with strategic objectives. It contributes significantly to an organization’s success by driving efficiency and effectiveness. The ultimate goal of OM is to maximize the organization’s profit. This involves balancing costs (inputs) with revenue (outputs).
Operations management directly involves overseeing the operations process, including design, planning, control, and performance improvement. It efficiently transforms resources into high-quality goods or services. Additionally, operations managers interact with counterparts in other functional areas (such as marketing, human resources, and finance) whose roles impact operations. By measuring actual outputs against planned operational targets, operations managers maintain control and drive efficiency.
duties and responsibilities of operations management include:
- Resource Utilization: Operations managers handle resources such as staff, materials, equipment, and technology.
- Goods Delivery: They acquire, develop, and deliver goods based on client needs and organizational capabilities.
- Strategic Decisions: Addressing strategic matters like plant sizing, project management, and IT network design.
- Inventory Management: Monitoring inventory levels, including work-in-process and raw materials.
- Quality Assurance: Ensuring product quality meets standards.
- Maintenance Protocols: Implementing maintenance practices to optimize resource utilization.
These key duties and responsibilities align with the managerial functions of planning, organizing, directing and controlling:
- Planning:
- OM Responsibilities:
- Improve operational management systems, processes, and best practices.
- Monitor and supervise the production or manufacturing process to ensure smooth operations and optimal outcomes.
- Alignment with Planning:
- Setting Objectives: OM involves setting objectives related to production efficiency, resource utilization, and waste reduction.
- Forecasting: OM planners must anticipate future conditions, such as demand fluctuations and resource availability.
- Decision Making: Choosing the best courses of action for achieving objectives.
- Formulating Steps: Developing action plans and implementation strategies.
- OM Responsibilities:
- Organizing:
- OM Responsibilities:
- Managing budgets, ensuring efficient resource utilization.
- Supervising the workforce, allocating tasks, and monitoring performance.
- Overseeing warehouse efficiency and maintaining optimal supply chain operations.
- Alignment with Organizing:
- Resource Allocation: OM organizes labor, materials, and technology effectively.
- Task Assignment: Assigning responsibilities to achieve production goals.
- Supply Chain Coordination: Ensuring smooth flow across the organization.
- OM Responsibilities:
- Directing (Leading):
- OM Responsibilities:
- Managing teams and resources to optimize processes.
- Providing leadership and guidance to the operations team.
- Alignment with Directing:
- Leadership: OM leaders foster a positive work environment.
- Alignment with Goals: Ensuring that operations align with organizational objectives.
- Motivation: Encouraging teamwork and productivity.
- OM Responsibilities:
- Controlling:
- OM Responsibilities:
- Conducting risk assessments and implementing preventive measures.
- Analyzing financial data to improve profitability.
- Alignment with Controlling:
- Risk Management: OM identifies risks and takes corrective actions.
- Performance Evaluation: Monitoring success and adjusting plans when necessary.
- Quality Control: Ensuring adherence to standards.
- OM Responsibilities:
Operations Management integrates seamlessly with the managerial functions, ensuring efficient and effective execution of organizational goals. By aligning OM practices with these functions, businesses achieve operational excellence and drive success.
OM Strategic and Operational Aspects
Operations management has both strategic and operational aspects.
- Operational Aspects: Operationally, operations management focuses on the control of the means - processes and resources - by which organizations create and deliver value to customers. It is concerned with is the practice of handling day-to-day business functions in a manner that is efficient and maximizes profitability. It is focused on the efficiency and effectiveness of organization's operational processes. It involves operations managers overseeing the process of acquiring, developing, and delivering goods and services to customers based on the needs of a target market, and the abilities of the organization. Operations management is concerned with maintaining a steady workflow, whether for producing your products or administration of operations function. Operations management involves managing processes, resources (such as materials, machines, technology, and funds), and people to produce products (goods and services) that the marketplace wants.
- Objective: Efficiently handle day-to-day business functions to maximize profitability.
- Focus: Ensuring efficiency and effectiveness in operational processes.
- Responsibilities: Overseeing resource utilization (processes, materials, technology) for value creation and delivery.
- Structured Decision-Making: Balancing resource efficiency and operational performance.
- Strategic Aspects: Strategically, operations management is concerned with determining operations approaches (operations strategies) and operational capabilities needed to achieve the desired competitive position of the company as a whole, and while meeting operational goals. The strategic aspects of operations management involves determining the systems, tasks and technology needed to fulfill the strategic objectives, deciding how to acquire the resources and design the facilities these tasks require, and measuring service delivery to gauge the ability of the operations to reach intended targets. The strategic aspects of operations management is concerned with shaping the long-term capabilities of any type of operations and its contribution to the organization's overall strategy.
- Objective: Determine approaches and capabilities for competitive positioning.
- Tasks: Define systems, tasks, and technology aligned with strategic goals.
- Measurement: Evaluate service delivery against intended targets.
- Long-Term Impact: Shape overall organizational strategy.
- Operations Control Decisions: Operations control decisions are determinations of which organizational units/departments will carryout the tasks, and establishing criteria for task completion, resource utilization and evaluating outputs/results.
- Allocation: Assign tasks to organizational units.
- Criteria: Set completion standards and resource utilization benchmarks.
- Performance Evaluation: Assess outputs/results.
Operations management aims to create a unique production strategy that satisfies organizational needs while optimizing efficiency in manufacturing and service delivery
Operations Management Decisions
Operations management decisions play a crucial role in ensuring efficient production and delivery of goods and services within an organization. It involves making decisions across various dimensions to optimize processes and achieve strategic goals. These decision dimensions include:
- Resource Allocation: OM decisions involve allocating resources effectively. This includes managing labor, materials, technology, and financial resources.
- Process Design: Deciding how work processes should flow, from raw materials to finished products or services.
- Quality Control: Ensuring that products or services meet established standards.
- Inventory Management: Monitoring inventory levels, minimizing excess stock, and optimizing supply chain efficiency.
- Risk Assessment: Identifying potential risks and implementing preventive measures.
OM decisions are guided by operations strategy. For instance, capacity planning aligns with business growth goals. OM decisions impact operations systems, which, in turn, influence future strategic choices. Operations systems execute the chosen strategies. They facilitate smooth production, delivery, and quality control. OM decisions impact operations systems, which, in turn, influence future strategic choices. OM decisions are the tactical steps taken to achieve strategic objectives. By harmonizing these decisions with operations strategy and leveraging efficient operations systems, organizations optimize their processes and deliver value to customers.
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Strategic Decisions
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Tactical/Operational Decisions
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Administrative Decisions
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Operations Function and Controls
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Operations Management Strategic Decisions
Operations management strategic decisions encompass critical choices that significantly impact the organization’s long-term direction. These strategic decisions shape the organization’s competitive position, resource allocation, and overall success. These decisions pertain to day-to-day operational activities, ensuring efficient execution of processes. They address practical questions such as:
These decisions directly affect operational efficiency, productivity, and quality. Operations management decisions are guided by the strategic choices made during operations strategy formulation. Operations management strategic decisions can be guided by the organization's competitive priorities, and grouped into categories, such as structural and infrastructure. The structural decisions relate to the physical attributes of operations, and infrastructural decision relate to the systems and resources. Some examples of these decisions, include:
The strategic aspects of operations management is concerned with shaping the long-term capabilities of any type of operations and its contribution to the organization's overall strategy. The strategic aspects of operations management involves determining the systems, tasks and technology needed to fulfill the strategic objectives, deciding how to acquire the resources and design the facilities these tasks require, and measuring service delivery to gauge the ability of the operations to reach intended targets.
Effective operations management ensures that the strategic goals set during formulation are executed efficiently. Performance metrics from operations management inform adjustments to the overall strategy. Operations strategy formulation sets the vision, while operations management strategic decisions execute that vision in practice. Both are essential for achieving organizational success .
Operations management strategic decisions encompass critical choices that significantly impact the organization’s long-term direction. These strategic decisions shape the organization’s competitive position, resource allocation, and overall success. These decisions pertain to day-to-day operational activities, ensuring efficient execution of processes. They address practical questions such as:
- How do we optimize production schedules?
- Which suppliers should we partner with?
- How do we manage inventory?
- What quality control measures should we implement?
These decisions directly affect operational efficiency, productivity, and quality. Operations management decisions are guided by the strategic choices made during operations strategy formulation. Operations management strategic decisions can be guided by the organization's competitive priorities, and grouped into categories, such as structural and infrastructure. The structural decisions relate to the physical attributes of operations, and infrastructural decision relate to the systems and resources. Some examples of these decisions, include:
- Location Decisions: A company's objective in this strategic decision area is the selection of a location to allow for example, optimum transportation of its products to distribution channels; optimum transportation of material an parts to manufacturing facilities, etc.
- Strategic Importance: Choosing where to establish facilities (factories, warehouses, offices) profoundly influences cost structures, accessibility to markets, and overall competitiveness.
- Factors Considered: Proximity to suppliers, customers, transportation networks, labor availability, and regulatory environment.
- Capacity Planning: This decision area in operations management is concerned with design strategies which support production goals including technology and resources. This category deals with designing production processes and determining the capacity needed to meet demand. Decision makers must give due consideration to strategies to flexibly increase capacity if the organization has to scale production to match increase in demand. A company's main objective in this area is on how to maintain optimum production process.
- Strategic Significance: Determining the optimal production capacity aligns with business goals.
- Balancing Act: Balancing excess capacity (costly) versus insufficient capacity (missed opportunities).
- Technology Investments: Process technology decisions on how to structure the conversion processes and methods used in execution.
- Strategic Intent: Selecting technologies (automation, digital tools) that enhance efficiency, quality, and innovation.
- Impact: Technology choices shape the organization’s competitive edge.
- Supply Chain Design: This decision area in operations management is concerned with determining the best strategies to streamline be cost effective and to develop trusted partners. Supply chain decisions encompass sourcing raw materials, managing suppliers, inventory control, and distribution. Organizations must balance cost, lead time, and quality when making supply chain decisions. Efficient supply chain management ensures timely availability of materials and minimizes disruptions.
- Strategic Focus: Crafting a resilient, efficient supply chain network.
- Components: Supplier selection, inventory management, transportation modes, and risk mitigation.
- Product and Service Design: This decision area of operations management is applied based on market research, trends and forecasting. The company's objective in this strategic decision as it relates to Operations Management is to support the strategic positioning of the company's products - goods and services. This includes looking for ways to implement consistency in costs, quality, and resources across business divisions or brands.
- Strategic Implications: Defining product/service features, quality levels, and customization options.
- Market Alignment: Balancing customer preferences, cost constraints, and differentiation.
- Process Selection: Process decisions include selecting the most efficient production methods, layout design, and workflow optimization.
- Strategic Fit: Choosing the most suitable production processes (e.g., mass production, job shop, continuous flow).
- Trade-offs: Efficiency, flexibility, and responsiveness.
- Facility Layout and Design: This decision area of operations management is concerned with the company's design of its workflows and facilities.
- Strategic Goals: Optimizing space utilization, workflow, and resource allocation.
- Impact: Influences productivity, safety, and employee morale.
- Human Resources and Job Design: Implement continuous improvement programs, provide regular training, and focus on employee satisfaction. A motivated workforce contributes to success.
- Quality Management: Understand customer demands and meet their expectations. Use market research to determine needs and conduct quality assurance testing during production.
- Inventory: Strategize inventory control based on market conditions, supply shortages, and labor availability. Maintain an optimal balance to meet demand efficiently.
- Scheduling: Consider both production requirements and workforce availability. Different industries and departments have varying scheduling needs.
- Maintenance: Regularly maintain people, machines, and processes. Quality and reliability depend on effective maintenance practices.
The strategic aspects of operations management is concerned with shaping the long-term capabilities of any type of operations and its contribution to the organization's overall strategy. The strategic aspects of operations management involves determining the systems, tasks and technology needed to fulfill the strategic objectives, deciding how to acquire the resources and design the facilities these tasks require, and measuring service delivery to gauge the ability of the operations to reach intended targets.
Effective operations management ensures that the strategic goals set during formulation are executed efficiently. Performance metrics from operations management inform adjustments to the overall strategy. Operations strategy formulation sets the vision, while operations management strategic decisions execute that vision in practice. Both are essential for achieving organizational success .
Operations Management Operational Decisions
Operational management decisions are determinations made in regard to the routine, ongoing activities in the functional areas of an organization. These involve the daily business decisions that are done in high-volume by every business. It’s in the nature of operational decisions to be easily repeatable, because one of its primary characteristic is being consistent at following defined rules or guidelines. Another characteristic is that these decisions should often be made as quickly as possible and sometimes they are made while clients are waiting. While these decisions are often made about customers, they can also involve suppliers, employees and products. Operational decisions, unlike strategic decisions, are repetitive, routine and involve definite procedures for handling, so they do not have to be treated each time as if they are new.
Operational decisions are made within the context of longer-term strategic decisions, so that an organization’s strategy is always supported by its operating decisions. Operational decisions are taken in accordance with strategic and administrative decisions; and are related to the efficient production of goods and services. For example, to reduce cost is a strategic goal which is achieved through operational decision of reducing the number of employees; and how we carry out these reductions will be administrative decision. While these decisions are often made about customers, they can also involve suppliers, employees and products.
Operational decisions in operations management are the backbone of daily business activities. They include:
These operational decisions directly impact day-to-day efficiency, customer satisfaction, and overall business success.
Some examples of these decisions include:
In operational decision making, the decision makers have to consider factors such as volume, latency, variability, managing risk, self service and personalized. It’s in the nature of operational decisions to be easily repeatable, because one of its primary characteristic, is being consistent at following defined rules or guidelines. Another characteristic with these decisions is, they are often made as quickly as possible and sometimes they are made while clients are waiting. Good operational decisions help eliminate wasteful activities and costly reports. They reduce fraud and prevent fines. They help people in your organization be more productive, and spend their time where it really matters.
Operations Management Tactical Decisions
Tactical operations management decisions bridge the gap between strategic vision and day-to-day execution. Tactical decisions influence the organization over a relatively short to medium timeframe. They address immediate operational needs and respond to changing conditions. The decision areas include:
Tactical operations management decisions ensure smooth execution, adaptability, and alignment with strategic objectives.
Significance of Tactical Decisions
Tactical operations management decisions bridge the gap between strategic vision and day-to-day execution. Their significance in strategy implementation include:
Tactical decisions directly impact day-to-day efficiency and contribute to overall business success.
Operational management decisions are determinations made in regard to the routine, ongoing activities in the functional areas of an organization. These involve the daily business decisions that are done in high-volume by every business. It’s in the nature of operational decisions to be easily repeatable, because one of its primary characteristic is being consistent at following defined rules or guidelines. Another characteristic is that these decisions should often be made as quickly as possible and sometimes they are made while clients are waiting. While these decisions are often made about customers, they can also involve suppliers, employees and products. Operational decisions, unlike strategic decisions, are repetitive, routine and involve definite procedures for handling, so they do not have to be treated each time as if they are new.
Operational decisions are made within the context of longer-term strategic decisions, so that an organization’s strategy is always supported by its operating decisions. Operational decisions are taken in accordance with strategic and administrative decisions; and are related to the efficient production of goods and services. For example, to reduce cost is a strategic goal which is achieved through operational decision of reducing the number of employees; and how we carry out these reductions will be administrative decision. While these decisions are often made about customers, they can also involve suppliers, employees and products.
Operational decisions in operations management are the backbone of daily business activities. They include:
- Inventory Management Decisions:
- Balancing stock levels to meet demand while minimizing excess inventory.
- Deciding reorder points, safety stock, and economic order quantities.
- Scheduling and Production Decisions: Quality management is the systematic control process of keeping an intended level of quality in the goods and services, in which the organization deals. It attempts to prevent defects and make corrective actions (if they find any defects during the quality control process), to ensure that the desired quality is maintained, at reasonable prices.
- Determining production schedules based on customer orders and resource availability.
- Allocating work shifts, machine usage, and task sequencing.
- Quality Control and Assurance Decisions: Quality management is the systematic control process of keeping an intended level of quality in the goods and services, in which the organization deals. It attempts to prevent defects and make corrective actions (if they find any defects during the quality control process), to ensure that the desired quality is maintained, at reasonable prices.
- Implementing quality checks at various stages of production.
- Addressing defects, ensuring compliance with standards, and maintaining consistent quality.
- Pricing and Sales Decisions:
- Setting product/service prices to maximize revenue and profitability.
- Crafting sales strategies, discounts, and promotions.
- Supply Chain Management and Logistics Decisions:
- Optimizing supply chain processes, including sourcing, transportation, and distribution.
- Selecting suppliers, negotiating contracts, and managing lead times.
- Maintenance Decisions: These decisions relate to what the organization needs to do to maintain quality and keep resources reliable and stable. Machinery, tools and equipment play a crucial role in the process of production. So, if they are not available at the time of need, due to any reason like downtime or breakage etc. then the entire process will suffer.
- Maintaining equipment, machinery, and facilities to prevent breakdowns.
- Scheduling preventive maintenance and addressing repairs promptly.
- Human Resources (HR):
- Operational Aspect: HR functions are integral to daily operations.
- Responsibilities:
- Recruitment and selection of employees.
- Training, development, and performance management.
- Compensation, benefits, and employee relations.
- Impact: Efficient HR practices enhance workforce productivity and satisfaction.
- Job Design:
- Operational Decision:
- Structuring job roles, tasks, and responsibilities.
- Determining work processes, skill requirements, and job enrichment.
- Objective: Optimize employee performance, motivation, and well-being.
- Influence: Job design affects operational efficiency and overall organizational effectiveness.
- Operational Decision:
These operational decisions directly impact day-to-day efficiency, customer satisfaction, and overall business success.
Some examples of these decisions include:
- Which customer orders/jobs to schedule for production - [Production]
- Which components and raw materials to buy from suppliers, - [Purchasing]
- Which production equipment to schedule for use, [Production Scheduling]
- The nature of a marketing campaign - [Marketing]
- Where to invest excess funds - [Finance]
- Determining how much inventory to keep on hand. [Operations]
In operational decision making, the decision makers have to consider factors such as volume, latency, variability, managing risk, self service and personalized. It’s in the nature of operational decisions to be easily repeatable, because one of its primary characteristic, is being consistent at following defined rules or guidelines. Another characteristic with these decisions is, they are often made as quickly as possible and sometimes they are made while clients are waiting. Good operational decisions help eliminate wasteful activities and costly reports. They reduce fraud and prevent fines. They help people in your organization be more productive, and spend their time where it really matters.
Operations Management Tactical Decisions
Tactical operations management decisions bridge the gap between strategic vision and day-to-day execution. Tactical decisions influence the organization over a relatively short to medium timeframe. They address immediate operational needs and respond to changing conditions. The decision areas include:
- Resource Allocation and Coordination:
- Workforce Scheduling: Determining staffing levels, shifts, and task assignments.
- Quality Assurance Procedures: Implementing processes to maintain product/service quality.
- Vendor Contracts: Managing relationships with suppliers and service providers.
- Inventory Management: Balancing stock levels efficiently.
- Flexibility and Adaptability:
- Tactical decisions allow adjustments as circumstances evolve.
- They involve less commitment of resources compared to strategic decisions.
- Operational Efficiency:
- Focusing on achieving short-term goals efficiently.
- Coordinating day-to-day activities to meet targets promptly.
Tactical operations management decisions ensure smooth execution, adaptability, and alignment with strategic objectives.
Significance of Tactical Decisions
Tactical operations management decisions bridge the gap between strategic vision and day-to-day execution. Their significance in strategy implementation include:
- Workforce Scheduling:
- Objective: Efficiently allocate staff to shifts and tasks.
- Impact: Ensures smooth operations and meets short-term staffing needs.
- Quality Assurance Procedures:
- Implementation: Establishing processes for quality checks during production.
- Purpose: Maintaining consistent product/service quality.
- Vendor Contracts:
- Responsibility: Managing relationships with suppliers and service providers.
- Effect: Ensures timely deliveries and cost-effective sourcing.
- Inventory Management:
- Focus: Balancing stock levels efficiently.
- Tasks: Determining reorder points, safety stock, and economic order quantities.
- Resource Planning and Allocation:
- Coordination: Assigning resources (human, financial, material) effectively.
- Short-Term Goals: Aids in meeting immediate operational targets.
Tactical decisions directly impact day-to-day efficiency and contribute to overall business success.
Operations Management Administrative Decisions
Administrative decisions in operations management bridge strategic planning and day-to-day execution. They encompass routine tasks, resource allocation, and coordination. Examples include workforce scheduling, quality control procedures, and vendor contract management. These decisions ensure efficient operations and support organizational goals.
Administrative decisions within operations management are essential for efficient day-to-day functioning. Some examples include:
Administrative decisions are the backbone of operational success, ensuring effective resource management and streamlined processes.
Administrative decisions in operations management bridge strategic planning and day-to-day execution. They encompass routine tasks, resource allocation, and coordination. Examples include workforce scheduling, quality control procedures, and vendor contract management. These decisions ensure efficient operations and support organizational goals.
Administrative decisions within operations management are essential for efficient day-to-day functioning. Some examples include:
- Resource Allocation (Budgeting):
- Purpose: Distributing financial resources among functional areas and product lines.
- Impact: Ensures optimal utilization of funds and supports operational goals.
- Scheduling of Operations:
- Objective: Determining work schedules, shifts, and task assignments.
- Efficiency: Ensures smooth workflow and timely production.
- Supervision of Performance:
- Responsibility: Monitoring employee performance, adherence to processes, and quality standards.
- Outcome: Maintains operational efficiency and effectiveness.
- Control Actions:
- Application: Implementing corrective measures when deviations occur.
- Result: Keeps operations on track and aligned with organizational objectives.
Administrative decisions are the backbone of operational success, ensuring effective resource management and streamlined processes.
Operations Functions and Operational Control
Operations encompass all the activities and tasks within the value chain that organizations employ to create, deliver, and provide their products (goods and services) to customers or clients. These core business operations are the daily endeavors undertaken by companies to enhance enterprise value and generate profits. The functional areas constituting business operations include strategy, marketing, finance, human resources, technology, equipment, and operations. Efficiently managing this entire sequence of events is crucial for competitiveness and profitability in goods and services production.
The operations function pertains to how an organization’s core operations are designed and executed. It encompasses the departments responsible for day-to-day activities that keep the business running smoothly. The operations function focuses on optimizing value creation processes and aiding other functions within the value chain in making informed decisions. Operations function/departments include:
Every organization, regardless of nomenclature, has an operations function primarily responsible for producing goods and services. However, it relies on collaboration with other areas such as product management, supply chain, inventory, forecasting, scheduling, quality management, and facilities planning.
Operational Control in Operations Management
Operational control is a crucial aspect of operations management. It involves monitoring and managing daily activities within an organization to ensure efficient and effective performance. Operational control refers to the systematic process of overseeing and regulating day-to-day operations within an organization. It aims to maintain consistency, quality, and adherence to established standards. Operational control encompasses people, processes, and technology, functioning within the strategic framework of the organization.
Operational control is a management process that monitors and evaluates daily operations to quickly rectify any issues. It involves people, processes, and technology, and functions within the strategic framework of an organization. Operational control systems ensure activities align with established plans and are used by mid-level managers for intermediate-term decisions. When performance falls short of standards, corrective actions are enforced, which may include training, discipline, motivation, or termination.
The document further elaborates on various
Operational control plays a vital role in achieving organizational goals. By implementing effective control mechanisms, organizations can enhance efficiency, reduce errors, and maintain consistent performance. Managers at all levels use operational control systems to make informed decisions and drive continuous improvement. Operational control focuses on activities that can be programmed, such as automated processes, production scheduling, and inventory management. It aims to find optimal solutions while adhering to established standards.
Types of operational control processes:
Operational control is concerned with activities that can be programmed, such as automated plants, production scheduling, inventory control, order processing, payroll accounting, check handling, etc. It focuses on controlling costs, quality, and schedules. Errors in operational control might mean failing to complete projects on time. The goal of operational control is to find optimal solutions.
Operations encompass all the activities and tasks within the value chain that organizations employ to create, deliver, and provide their products (goods and services) to customers or clients. These core business operations are the daily endeavors undertaken by companies to enhance enterprise value and generate profits. The functional areas constituting business operations include strategy, marketing, finance, human resources, technology, equipment, and operations. Efficiently managing this entire sequence of events is crucial for competitiveness and profitability in goods and services production.
The operations function pertains to how an organization’s core operations are designed and executed. It encompasses the departments responsible for day-to-day activities that keep the business running smoothly. The operations function focuses on optimizing value creation processes and aiding other functions within the value chain in making informed decisions. Operations function/departments include:
- Financial Operations
- IT Operations
- Manufacturing Operations
- People Operations
- Sales and Marketing Operations
Every organization, regardless of nomenclature, has an operations function primarily responsible for producing goods and services. However, it relies on collaboration with other areas such as product management, supply chain, inventory, forecasting, scheduling, quality management, and facilities planning.
Operational Control in Operations Management
Operational control is a crucial aspect of operations management. It involves monitoring and managing daily activities within an organization to ensure efficient and effective performance. Operational control refers to the systematic process of overseeing and regulating day-to-day operations within an organization. It aims to maintain consistency, quality, and adherence to established standards. Operational control encompasses people, processes, and technology, functioning within the strategic framework of the organization.
Operational control is a management process that monitors and evaluates daily operations to quickly rectify any issues. It involves people, processes, and technology, and functions within the strategic framework of an organization. Operational control systems ensure activities align with established plans and are used by mid-level managers for intermediate-term decisions. When performance falls short of standards, corrective actions are enforced, which may include training, discipline, motivation, or termination.
The document further elaborates on various
Operational control plays a vital role in achieving organizational goals. By implementing effective control mechanisms, organizations can enhance efficiency, reduce errors, and maintain consistent performance. Managers at all levels use operational control systems to make informed decisions and drive continuous improvement. Operational control focuses on activities that can be programmed, such as automated processes, production scheduling, and inventory management. It aims to find optimal solutions while adhering to established standards.
Types of operational control processes:
- Quality Control: Measures and compares product performance against predetermined standards to identify defects and errors, thereby improving product quality and ensuring customer satisfaction.
- Inventory Control: Manages and monitors inventory levels in an organization, determining when to order new stock and ensuring safe and secure storage of goods.
- Production Control: Manages the manufacturing process to ensure efficient and cost-effective production of goods.
- Cost Control: Monitors and controls the costs associated with producing goods and services, tracking costs, analyzing them, and identifying opportunities for cost reduction.
- Security Control: Primarily implemented and executed by people, these controls improve the performance of a system or group of systems.
- Risk Management: A systematic approach to identify, assess, and manage potential risks.
- Performance Management: Monitors, evaluates, and improves the performance of individuals, teams, and organizations.
Operational control is concerned with activities that can be programmed, such as automated plants, production scheduling, inventory control, order processing, payroll accounting, check handling, etc. It focuses on controlling costs, quality, and schedules. Errors in operational control might mean failing to complete projects on time. The goal of operational control is to find optimal solutions.