In short, operations management is the art of delivering goods or services within a company in a cost effective manner. An operations manager will orchestrate the daily flow of activity that supports key business functions such as customer service, sales, supplies, and inventory. It is necessary that an operations manager is knowledgeable about all aspects of operations management. For example, if the company needs raw materials to produce goods or if a part of a production line requires periodic maintenance, then the operations manager is responsible for ensuring that all parts of the production line are properly stocked or maintained.
A glossary of Operations Management terms is available on the Wikipedia website under the subject heading Operations Management. Additional information can be found at Operations, Definition, Part One, Operations, Definition, Part Two. Operations, as defined by Wikipedia, is “The systematic process of operating a manufacturing, commercial, institutional or governmental enterprise in order to obtain a product or service.” Operations therefore, include all activities that support the normal operations of the business.
There are two basic perspectives on operations management. One is called functional management, which focuses on optimizing service, production, and information systems to achieve the desired goal of optimum utilization of available resources. This system focuses on designing and testing of the process and systems to determine whether or not operations can be improved to achieve the desired goal. Functional operations management is sometimes referred to as a service design perspective. The second perspective on operations management is known as information systems, which focuses on the creation of a process and system to support and improve service, productivity, and cost reduction.
Both functional and information systems approaches to operations management require the development of a strategic plan, also referred to as SCO (systems, procedures, objectives and plan). This strategic plan may contain companywide plans and series of regional or project plans. It can help to monitor the progress of operations as well as set goals and review and assess the performance of the overall operations system. This plan can include funding sources and labor requirements, human resource requirements, and the responsibilities of upper management. These plans can also be used to implement short-term projects that improve specific functions, enhance quality, or reduce costs.
Job design work flow diagrams, also called GDT, allow a company to see where the most productive workers are located. This kind of analysis not only shows where changes need to be made, but what kind of changes need to be made. The availability of employees, skills, talents, and knowledge can be analyzed to determine how to increase productivity, streamline processes, and reduce costs.
Job design GDTs is also helpful in improving processes that involve more than two people. They help a company focus on the tasks that require the most skill and attention, while keeping others out of the way. They can also help show managers exactly which employees have been producing the results they are looking for. When the operations systems that support job flow diagrams improve overall productivity, it can help to bring down expenses and increase profits.
Managing productivity is an essential part of providing a good customer experience. To do this, a company must establish clear job design work flow diagrams and take advantage of supply chain service design quality control methods. When these tools are put to use, a company can create a detailed description of its entire operations and work its way through the operations in a step-by-step fashion. By using the analysis provided by a GDT, a manager can ensure that all aspects of its operations are being managed as well as possible. This allows for more efficient and effective processes that improve overall productivity and efficiency.