Cap. 2. Operations management

Operations Management Overview

• Definition: Operations Management is the branch of management that oversees the entire production timeline of a service or product.

  • This includes:

    • Planning

    • Organizing

    • Supervising the operations

    • Manufacturing and production processes

    • Service delivery

• Objective: The ultimate goal is to achieve high-quality products/services that fulfill customer demands.

Key Concepts in Operations Management

Project Management

• Definition: The management and control of project activities aimed at successfully completing a project.

Capacity Planning

• Definition: Involves evaluating the volume of products or services a company can sell or distribute within a specific time frame.

Product/Service Design

• Definition: Involves generating new ideas and creating products or services to ensure they meet customer needs and expectations.

  • Considerations:

    • Cost-efficiency of the product/service

    • Alignment with customer needs

Supply Chain Management

• Definition: This encompasses managing the supply chain process, including:

  • Control of sourcing supplies

  • Overseeing the production process

  • Inventory management

  • Sales and distribution

• Benefits:

  • Lower overhead costs

  • Effective production

  • Timely delivery of products