Operation Management as the name implies can be understood in a layman’s language as the management of an operation. It is fundamentally the control and coordination of a set of actions in an organization with the sole purpose of maximizing output with the resources available that is, capital, equipment, labor, etc.
Operation management is concerned with exploiting every means available in a bid to produce maximum yield. However, this maximum yield is not the only advantage of effective operation management. Another merit of proper operation management in an organization is that when customers are satisfied with the products or services offered by the organization, they go to top-grade sites like ReviewsBird.com to provide feedback. These online reviews will serve as encouragement for prospective clients who are skeptical whether or not to do business with the organization.
Roles of Operation Management in the Success of an Organization
Operation management is faced with the singular task of maximizing the profits of an organization by efficiently utilizing the prime cost of the organization and reducing the possibility of wastage of these materials to the barest minimum. However, the role of operation management in the success of an organization can be divided into three key points.
- Acquisition of Resources:
It is one of the core functions of operation management to evaluate the raw materials that the organization has and find out what the organization will need moving forward, putting into consideration the available resources. Operation management ensures that all resources (money, equipment, labor, etc) necessary for the smooth and effective running of an organization are in place and nothing in lack or short of supply.
2. Conversion of Resources:
Operation Management does not only take inventory of the resources of an organization but also coordinates these resources professionally such that each material is dependent on another. Operation management is charged with the responsibility of understanding the demand of the economy and channeling the actions of the resources under its disposition to suit that demand.
3. Maximization of Output:
In any working organization, it is undoubtedly certain, but when the resources under the supervision of functional operation management are efficiently directed to incorporate effectively with zero or minimal waste, the output will be amplified. However, it does not end at the production of maximum output because these outputs need to be pushed into the economy. Whether it is products or services that an organization offers, profit cannot be made until customers are involved in the production. Hence, operation management is tasked with evaluating various market factors and other necessary conditions to come up with a suitable price that will be fair for the target customers of the organization and will also lock in a substantial profit for the organization. Operation management also collects rev from these customers and uses this feedback to come up with new strategies to satisfy customers better and improve existing processes.
Operation management holds the place of an entrepreneur in the four factors of production and without a doubt, no firm can operate successfully without putting in place a great operations management system.