What Is Operations Management?

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Video 1 - Curated Content Video 2 - Curated Content Video 3 - Curated Content Video 4 - So what did you learn from the case study of Penny Blossoms? The business increased its productivity by introducing assembly line into the system. We also saw how they followed the Japanese philosophy of Kaizen, which means continuous improvement of work practices and efficiency. First Penny Blossoms introduced sea shanty to increase productivity and reduced the time to make a single flower barrette from 12 minutes to 3 minutes. Then they introduced cyanoacrylates as a bonding agent, and solved the problem of moisture induced glitter clumps by using molecular sieve. Finally the team achieved the difficult task of producing 1000 flower barrettes over night for The 5th Annual East Rutherford, New Jersey, Gay, Lesbian, Bisexual, and Transgender Alliance Luau by increasing operational efficiency. So What is Operations Management? Operations management refers to the administration of business practices to create the highest level of efficiency possible within an organization. It is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization. Let’s study the concepts of Operations Management in-depth.

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Description

Operations Management is responsible for planning, coordinating and control of resources to produce goods and services of the company.

It includes various functions like -

- Supply Chain Management

- Inventory Management

- Logistics Management

- Quality Control

Operations Management is a core business function that transforms inputs into outputs. It has been evolving over the years and helps in attaining highest level of efficiency in an organisation.

Importance of Operations Management

- Business Operations form a large part of the company expenditure

- It helps in improving productivity and profitability

- It helps in gaining a competitive advantage by ensuring better quality at a lower cost

- The concepts of Operations Management are also applied in other departments

Key Takeaways

1. Operations Management is a broad concept - it involves all the activities related to the production of goods and services for an organization.

2. It focusses on achieving efficiency through a number of different techniques

Commonly Asked Interview Questions

What exactly do you think is the scope of operations management?

Up Next

The transformation of input to output takes place through a process. We will understand this process in the next chapter.

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