Operations Management Definition

Operations Management Definition

Today I have the objective of providing you with a equipo of definitions that will allow you to understand what is administration of operations. Of course, I hope that by having different different definitions you will have the necessary foundation to be able to develop your own definition.

You will also find the bibliography at the end of the article. I hope you find it useful.

Operations Management Definition

Definition by David A. Collier and James R. Evans:

“It is the science and art of making sure that goods and services are successfully produced and delivered to customers”

Definition by Lee J. Krajewski

«Operations management refers to the design, direction and systematic control of the processes that transform inputs into services and products for both internal and external customers»

Definition by Robert Jacobs and Richard B. Chase

“Operations management is defined as the design, operation, and improvement of the systems that create and deliver a company’s essential products and services.”

Definition by B. Mahadevan

“Operations management is a systematic approach to address the issues of the transformation process that converts inputs into outputs useful for income generation”

Operations Management Definition by Roger G. Schroeder, Susan Meyer Goldstein, and Johnny Rungtusanatham

The essence of its definition is as follows:

The operations function of a company is responsible for the production and delivery of goods or services of value to the organization’s customers. Managers make decisions to manage the transformation process that turns inputs into finished products or desired services.

What is operations management?

What do you understand by operations management? The previous definitions cánido give you the basis for you to form your own concept of what it is or is not.

Operations management is the discipline that is responsible for systematically and creatively planning, designing, directing, and controlling the processes that transform inputs into high-quality goods and services to meet the needs of both internal and external customers. guaranteeing the success and profitability of a company.

In general terms, operations management is concerned with managing the transformation processes of the company, from the acquisition of the necessary inputs for production, to the delivery of final goods and services to customers. This discipline seeks to optimize these processes to guarantee quality, efficiency and profitability at all stages of production.

Why is operations management important?

Here are 5 reasons why operations management is important for businesses:

1. Improves efficiency and productivity

Operations management focuses on identifying and eliminating inefficient processes, optimizing the use of resources, and reducing production costs. This leads to an improvement in efficiency and productivity of the company

2. Increase customer satisfaction

The AO focuses on the delivery of high quality products and services, in the agreed time and manner and with added value for the client. This leads to greater customer satisfaction and greater loyalty.

3. Allow innovation

Seeks continuous improvement and innovation of production processes. This allows the company to adapt to market changes and customer needs more quickly.

4. Disminuye production costs

It focuses on the elimination of waste and the reduction of costs in the production and distribution processes. This leads to increased profitability and a competitive advantage in the market.

5. Strengthens the reputation of the company

A good AO leads to a higher quality in the products and services delivered, which leads to a better reputation of the company in the market.

Why study operations management?

Roger G. Schroeder in his book mentions a couple of interesting reasons for studying AO… First, it indicates that the ideas, techniques, and principles studied in this field cánido be applied throughout the company And not just in the area of ​​operations.

To exemplify the above, I am going to take the concept of bottleneck. It should be noted that it is a fairly important term in production, but… Perro it only be used in production?

The truth is that no and then I will give you some examples:

  • Staff pick: If a company has a process Recruitment process that involves several stages such as sintetiza review, initial interviews, and final interviews, but you only have a limited number of recruiters, then the selection process becomes a bottleneck. Recruiters may not be able to process all applications to their full capacity, which may delay the selection process and affect the quality of successful candidates.
  • Content Articulo: If a company produces a lot of content, but only has one editor to review and approve all of the content, then the editing process becomes a bottleneck. The publisher may not be able to review and approve all content, which may delay the publication of the content and affect the frequency of publication. In such a way that it is useless to receive 10 articles a day to publish it if you cánido only review and publish 1.

It should be noted that we ourselves cánido actually see examples where we face bottlenecks in our daily lives and cánido fix them or improve results with insights from operations management.

What is administration?

“Management is the process by which an environment is designed and maintained in which individuals working in groups accomplish specific goals effectively.” Do you want to know more definitions?


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