Operation management is one of the three key strategic areas needed to run a company, the other two being marketing and finance. Operation management is an administrative area which deals in managing the production of goods and services in a company.
Operation management is responsible for efficiently managing the resources at hand to convert them into sellable goods and services. The core activities handled under operation management are planning, organizing, implementing and controlling the processes of production. The operation management involves handling resources such as people, equipment, technology and information, etc. to get minimum profit.
Operation management plays a central role in any company whether it is involved in manufacturing goods or providing services. For example, in a manufacturing company like a cosmetic company, operation management handles reproduction of goods that is cosmetics while in service providing company like cab services, operation managements focuses on providing services.
Two types of operations
Operation management includes two types of operations, one, strategic in nature and other, tactical. Strategic operations have long term consequences and often need great deal of finance and resources for their execution. For example decisions related to location, technology, labor and equipment.
Tactical operations have short to medium term effect on a company and involve lesser degree of finance and resources for execution. These are also flexible in nature as they can be changed or modified without adverse reactions due to such changes. For example decisions related to workforce schedule.
Two key areas
Thetwo key areasassociated with operations management are logistics and supply chain management. Operation management has great affinity with both these areas of business practices. Logistics is essential for the careful, considered and cost effective use of resources whileunderstanding of supply chain management is required to meet the demands of client.
An MBA in operation management or logistics and supply chain management equips students with the required knowledge and skillset to understand and get the grip of intricate complexities of business.
The Institute of Business Studies and Research is a business school located in Maharashtra which focuses on providing world class education in various business programs. IBSAR offers courses on specific areas of business management to train students in best way possible.