Operations Management Overview

Study Notes

Operations management is the administration of business practices to create the highest level of efficiency possible within an organization.
It involves managing and overseeing the production of goods and services.
Operations managers are responsible for ensuring that business operations are efficient, effective, and meet customer requirements.

Supply Chain Management: the management of flows of goods, services, and information from raw materials to end customers.
- Includes procurement, production planning, inventory management, and logistics.
Operations Strategy: a long-term plan that outlines how operations will support the organization's overall strategy.
- Involves defining operational objectives, identifying core competencies, and allocating resources.
Process Management: the management of a series of activities that create value for customers.
- Involves designing, managing, and improving business processes to increase efficiency and effectiveness.

Production Planning: determining the quantity and timing of production to meet customer demand.
Inventory Management: controlling and maintaining inventory levels to minimize costs and maximize service levels.
Quality Management: ensuring that products or services meet customer requirements and industry standards.
Supply Chain Risk Management: identifying and mitigating risks that could disrupt the supply chain.

Productivity: the ratio of output to input.
Efficiency: the ratio of actual output to standard output.
Effectiveness: the extent to which operations achieve their goals and objectives.
Customer Satisfaction: the degree to which customers are happy with products or services.

Job Production: producing unique or customized products in small batches.
Batch Production: producing products in large batches.
Mass Production: producing products on a large scale using specialized machines and equipment.
Continuous Production: producing products continuously, 24/7.

Administration of business practices to create the highest level of efficiency possible within an organization.
Involves managing and overseeing production of goods and services to ensure efficiency, effectiveness, and meeting customer requirements.

Supply Chain Management: managing flows of goods, services, and information from raw materials to end customers, including procurement, production planning, inventory management, and logistics.
Operations Strategy: a long-term plan outlining how operations will support the organization's overall strategy, including defining operational objectives, identifying core competencies, and allocating resources.
Process Management: designing, managing, and improving business processes to increase efficiency and effectiveness.

Production Planning: determining quantity and timing of production to meet customer demand.
Inventory Management: controlling and maintaining inventory levels to minimize costs and maximize service levels.
Quality Management: ensuring products or services meet customer requirements and industry standards.
Supply Chain Risk Management: identifying and mitigating risks that could disrupt the supply chain.

Productivity: ratio of output to input.
Efficiency: ratio of actual output to standard output.
Effectiveness: extent to which operations achieve their goals and objectives.
Customer Satisfaction: degree to which customers are happy with products or services.

Job Production: producing unique or customized products in small batches.
Batch Production: producing products in large batches.
Mass Production: producing products on a large scale using specialized machines and equipment.
Continuous Production: producing products continuously, 24/7.