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Title: Operations Management
Subject: Economics and Business Studies
This study note provides a detailed understanding of the topic of
Operations Management
...

This note explores the aspects of operations management in the
world of economics and business studies, and this study note shall
help you ace your exams
...


This note is divided into
o

Introduction

o

The historical presence of Operation Management

o

Factors affecting
Management

productivity

in

Operations

o

Different examples of Operations Management

o

Types of Operations Management
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▪
▪
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Financial
Internal
External

o

Importance of Operations Management

o

Role of Operations Management
Benefits of Operations Management

o

Disadvantages of Operations Management

o

Introduction:
The management of corporate operations is done to meet objectives,
boost productivity, and increase profit
...

This includes planning, organising, and supervising operations,
manufacturing and production processes, and service delivery to
produce the desired outcome of a high-quality product or service that
satisfies customer demands
...

Operations management refers to ongoing tasks performed by an
organisation that result in recurring, long-term outputs, like providing
services or producing goods
...
Operations management seeks to maintain
important quality standards while ensuring daily operations are efficient,
timely, and cost-effective
...
In other words,
it seeks to increase earnings through a satisfied consumer base
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Therefore, operations management is
a broad field that includes things like designing products and processes,
planning plants, managing materials, performing maintenance, ensuring
product quality, controlling output, etc
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The design lays out the operations and methods for resource
use
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Numerous transformational processes, such as storage, shipping,
cutting, etc
...

Through forecasting, operations management foresees the capacity
needs
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● The historical presence of Operation Management:
Operations management dates back to the late 17th century Industrial
Revolution in England, which eventually spread to the rest of Europe and
the United States throughout the 19th century
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When Adam Smith's The Wealth of Nations was published in 1776, it
promoted the virtues of labour specialisation or division, which divided
the production of products into smaller, more specialised jobs and
assigned them to workers on production lines
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England was the first country to feel the effects of the Industrial
Revolution
...

The invention of the gasoline engine and electricity in the 1800s helped
the Industrial Revolution advance
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The massive factory system had supplanted the ancient village mode of
production by the middle of the 18th century
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A component that was lacking at the beginning of the 20th century was
management, or the capacity to expand and employ the available
facilities to create on a huge scale to satisfy today's enormous markets
...
Frederick Winslow
Taylor, a productivity engineer and innovator who is frequently referred to
as the Father of Scientific Management, was the movement's driving
force
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Due to
greater earnings and a level playing field in business, global
competition has enabled enterprises to buy and sell their
services globally
...
To protect them and guarantee correct
material use, the organisation must constantly watch them
...
Promoting political or social causes that can
benefit others, such as supporting child labour legislation,
buying fair trade goods, or recycling, is a way to support
social causes
...
Or, to put it even more
simply, technological development increases our knowledge
of it
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This may
entail keeping an eye on administrative expenses, controlling
claims and billing, and maintaining legal compliance
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● Restaurant: An operations manager is typically in charge of
facility maintenance, personnel training and supervision,
financial planning, inventory management, compliance, and
payroll for a restaurant or chain of restaurants
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● Transportation:
Among
other
things,
operations
management for a transportation company includes
controlling the upkeep of vehicles, fuel supply, routing,
staffing, and communication
...
However, an operations management analysis may
occasionally reveal that a company can gain from forgoing
immediate financial gains and other short-term objectives to
boost long-term gains and capacity
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● Internal: Most managers envision operations management
as a component of reorganising internal practises and
procedures when they conceive of operations management
...

● Or a company may decide to concentrate on enhancing
certain facets of the internal process, such as accounts
payable, accounts receivable, manufacturing, order
management, scheduling, hiring, training, and other areas
...

●

Importance of Operations Management:
● An organisation's entire operating system is under operations
management's control
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● All processes are under the control of operations
management, which also deals with system design,
operation, maintenance, and improvement issues
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● An organisation's capacity to fulfil its growth and stability
objectives is positively impacted by operations management
since it enhances its reputation
...
Therefore, happy customers
also mean repeat business and recommendations, which
raises the brand value and gives you a competitive edge in
the market
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As a result, operations
management makes offering more goods and services easier
while cutting expenses, which boosts an organisation's
growth and revenues
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●

Role of Operations Management:
● Capacity Planning: Operations management's capacity
planning process involves determining how many goods or
services a business can produce and deliver over the course
of a given time
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Operations management must ensure that a product meets
client needs while considering its cost-efficiency
...
It involves keeping an eye out for
potential problems or faults as services or goods move
through each stage of the production process or service
operations
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● Supply chain Management: Management of the supply
chain is done by keeping track of where the materials are
coming from, how they are being made, how much is being
spent on each step of the production process, how much is
being sold, and how it is being distributed
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● High-level planning and strategizing are also responsibilities
of operations management
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They can then rely on that reliable data to develop
new strategies for boosting sales or developing fresh product
concepts
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Physical machines and human
resources are both examples of resources
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Your production time will probably go down,
enabling you to fulfil orders on schedule, which is essential
for building strong client relationships
...
Even if a good strategy is

implemented, it will only succeed if it is carried out properly
by all involved parties
...
This problem typically arises when a product is
manufactured and then sold
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● Overall, operations management methods will only be
somewhat successful if the organisation's constituent parts
are not collaborating properly with one another
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As a result, these managers are responsible for
managing tasks linked to product and process design, goal planning,
resource management, activity control, and productivity enhancement
...
As a result, operations
management's importance is demonstrated by an operations manager's
function
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To increase an organisation's profit, it is concerned with
transforming resources like labour and materials into products and
services as effectively as feasible

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