What Is Operations Management (OM)?
Operations management (OM) is 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.
Operations management teams attempt to balance costs with revenue to achieve the highest net operating profit possible.
Key Takeaways
Operations Management
Understanding Operations Management (OM) Operations management involves utilizing resources from staff, materials, equipment, and technology. Operations managers acquire, develop, and deliver goods to clients based on client needs and the abilities of the company.
Operations management handles various strategic issues, including determining the size of manufacturing plants and project management methods and implementing the structure of information technology networks. Other operational issues include the management of inventory levels, including work-in-process levels and raw materials acquisition, quality control, materials handling, and maintenance policies.
Operations management entails studying the use of raw materials and ensuring that minimal waste occurs. Operations managers use numerous formulas, such as the economic order quantity formula, to determine when and how large an inventory order to process and how much inventory to hold on hand.
The combination of understanding and coordinating the work of a company is central to becoming a successful operations manager.
https://www.investopedia.com/terms/o/operations-management.asp
Operations management (OM) is 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.
Operations management teams attempt to balance costs with revenue to achieve the highest net operating profit possible.
Key Takeaways
- Operations management (OM) is the administration of business practices to create the highest level of efficiency possible within an organization.
- Operations management is concerned with converting materials and labor into goods and services as efficiently as possible.
- Corporate operations management professionals try to balance costs with revenue to maximize net operating profit.
Operations Management
Understanding Operations Management (OM) Operations management involves utilizing resources from staff, materials, equipment, and technology. Operations managers acquire, develop, and deliver goods to clients based on client needs and the abilities of the company.
Operations management handles various strategic issues, including determining the size of manufacturing plants and project management methods and implementing the structure of information technology networks. Other operational issues include the management of inventory levels, including work-in-process levels and raw materials acquisition, quality control, materials handling, and maintenance policies.
Operations management entails studying the use of raw materials and ensuring that minimal waste occurs. Operations managers use numerous formulas, such as the economic order quantity formula, to determine when and how large an inventory order to process and how much inventory to hold on hand.
The combination of understanding and coordinating the work of a company is central to becoming a successful operations manager.
https://www.investopedia.com/terms/o/operations-management.asp