What Is Operations Management?

Operation management refers to the planning, organization, implementation and control of the operation process. It is a general term for various management tasks that are closely related to product production and service creation. Operation management is the most active branch of modern enterprise management science, and it is also a branch where a large number of new ideas and new theories emerge. ^[1]

Operations Management

(Management branch)

Operations management is the management of the functional units in an organization responsible for manufacturing products or providing services.

The object of operation management is operation process and operation system. The operation process is a process of input, conversion, and output. It is a labor process or a process of value addition. It is the largest object of operation. The operation must consider how to plan, organize and control such production and operation activities. Operation system refers to the means by which the above transformation process is realized. Its composition corresponds to the material conversion process and management process in the transformation process, including a material system and a management system.

Modern management theory believes that business management is divided into functions according to functions. The most basic and main functions are financial accounting, technology, production operations, marketing and human resource management. These five functions are both independent and interdependent, and it is this interdependence and cooperation that can achieve the business goals of the enterprise. The business activities of an enterprise are a cyclic process in which these five functions are organically linked. In order to achieve its own business objectives, the above five functions are indispensable.

Operational functions include closely related activities such as forecasting, capacity planning, scheduling, inventory management, quality management, employee incentives, and facility location.

1. Information technology has become an important means of operation management. A series of changes in management models and management methods caused by information technology have become an important research content of operations. Appeared in the past 30 years

The scope of operations management varies from organization to organization. Operations management personnel work includes product and service design, process selection, technology selection and management, work system design, site planning, facility planning, and improvement of the organization's product and service quality. ^[2]