Wednesday, 22 March 2017

What is operations management?


Operations management is basically the management of systems and the processes that are used to create goods and services provided by the business. The goods refer to any physical items that are made up from raw materials and parts or they may go into the final products such as vehicles. Services are activities that can provide location, value, form, and time. Goods are similar to the services that surround us at all times and can be found in what we use on a daily basis. Operation functions in business impact the national economy and play a part in competing with other nations.

A business must work towards meeting demand with supply in order to be cost efficient and satisfy customers’ wants. Operations and supply chain are essential functions of supply, while sales and marketing are the key functions of demand. Finance is concerned with budgeting and securing financial resources and providing enough funding for operations. Operations are responsible for providing services and producing goods that are provided by the business, it’s the core of the business.

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