Operation Management Overview

Definition: The administration of business practices aimed at ensuring maximum efficiency within an organization.
Key Functions:
- Production Management: Overseeing the production process to improve efficiency and quality.
- Supply Chain Management: Managing the flow of goods and services, including movement and storage of raw materials and inventory.
- Quality Control: Ensuring that products meet certain standards of quality.
- Inventory Management: Overseeing stock levels to minimize costs and maximize service levels.
- Process Improvement: Continuously seeking ways to enhance operational processes for better productivity.
Objectives:
- Minimize costs while maximizing output.
- Improve customer satisfaction through timely delivery and product quality.
- Ensure resource optimization (human, material, and financial).
Tools & Techniques:
- Lean Manufacturing: Focus on minimizing waste and maximizing productivity.
- Six Sigma: Methodology aimed at improving quality by identifying and removing causes of defects.
- Just-in-Time (JIT): Inventory strategy that aims to decrease waste by receiving goods only as they are needed.

Definition: The process of defining an organization’s strategy and making decisions on allocating resources to pursue that strategy.
Key Concepts:
- Vision & Mission: Establishing the long-term goals and core purpose of the organization.
- SWOT Analysis: Evaluating strengths, weaknesses, opportunities, and threats.
- Competitive Advantage: Creating value in a way that competitors cannot easily replicate.
- Strategic Planning: Developing plans to achieve organizational objectives and respond to external environment.
Objectives:
- Directional guidance for management at all levels.
- Align resources to goals and market opportunities.
- Adapt to changes and challenges in the business environment.
Process:
- Formulation: Crafting strategy based on internal and external analysis.
- Implementation: Executing strategies through operational plans.
- Evaluation: Monitoring outcomes and making adjustments to strategies as necessary.
Tools & Techniques:
- PEST Analysis: Assessing Political, Economic, Social, and Technological factors affecting an organization.
- Porter's Five Forces: Analyzing industry structure to identify competitive forces.
- Balanced Scorecard: Framework for translating strategic objectives into a set of performance metrics.

Operations management supports strategic management by implementing the strategies laid out by upper management through efficient operational processes.
Strategic decisions impact operational processes, requiring a synchronization between the two to ensure goals are met effectively and efficiently.

Definition: focuses on making an organization function efficiently, by putting business practices into action.
Key Functions:
- Production Management: focusing on maximizing efficiency and quality during the creation of products.
- Supply Chain Management: managing the flow of goods, from raw materials to the customer, ensuring smooth storage and movement.
- Quality Control: ensuring that products meet the quality standards set.
- Inventory Management: aiming to minimize costs and maximize customer service levels by ensuring appropriate stock levels.
- Process Improvement: constantly looking for ways to improve operational processes for higher productivity.
Objectives:
- Minimize costs while maximizing the amount of output produced.
- Improve customer satisfaction by ensuring timely delivery and high-quality products.
- Maximize the use of all resources, including people, materials, and finances.
Tools & Techniques:
- Lean Manufacturing: focusing on minimizing waste while maximizing productivity.
- Six Sigma: a methodology used to enhance quality by identifying and removing causes of defects.
- Just-in-Time (JIT): an inventory strategy that aims to decrease waste by receiving goods only as they are needed.

Definition: The process of setting an organization's strategy and deciding how to allocate resources to succeed.
Key Concepts:
- Vision & Mission: setting long-term goals and defining the organization's purpose.
- SWOT Analysis: evaluating internal strengths and weaknesses, and external opportunities and threats.
- Competitive Advantage: creating value in a way competitors cannot easily replicate.
- Strategic Planning: developing plans to achieve organizational objectives and respond to external factors.
Objectives:
- Provide clear direction to all levels of management.
- Align resources with organizational goals and market opportunities.
- Ensure adaptability to changes and challenges in the business environment.
Process:
- Formulation: crafting strategy based on internal and external analyses.
- Implementation: putting strategies into action through operational plans.
- Evaluation: monitoring results and adjusting strategies as needed.
Tools & Techniques:
- PEST Analysis: assessing Political, Economic, Social, and Technological factors impacting an organization.
- Porter's Five Forces: examining industry structure to identify competitive forces.
- Balanced Scorecard: a framework for translating strategic objectives into performance metrics.

Operations management supports strategic management by implementing the strategies set by upper management through efficient operational processes.
Strategic decisions directly impact operational processes, and therefore, the two need to be coordinated for effective and efficient goal achievement.