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Operations management can be defined as an area of management which is concerned with overseeing and designing. It is controlling the method of production and redesigning business operations within the production of goods. Involving the responsibility of ensuring that business operations organization is efficient in terms of using as few resources as required. It is concerned with managing the process that converts inputs into outputs and the relationship of operations management to senior management.

Operations management is the specific field concerned with management as well as directing the physical as well as technical functions of a firm or any organization. This is particularly those relating to development and production as well as manufacturing. Operations management programs naturally include instruction in principles of general management and manufacturing as well as production systems and plant management.

Operations management is similar to engineering in that it blends art with applied science where people skills and creativity as well as rational analysis, and knowledge of technology are all required for success.

Operations strategy is concerned with the policies and plans of utilizing the firm productive resources. It aims of supporting long term competitive strategy. Metrics that are used in operations management can be broadly classified into efficiency metrics as well as effectiveness metrics where the effectiveness metrics involve the following


  • The price is usually fixed by marketing, but this is lower bounded by production cost. Price includes the purchase price and use costs as well as maintenance costs and disposal costs
  • The quality which involves the specification as well as the compliance.
  • The time involves the production lead time and information lead time as well as punctuality.
  • Flexibility involves the mix and volume as well as gamma.
  • Stock means the availability


Operations management usually covers demand forecasting. It is not considered as an operations problem, because demand is correlated to some production systems variables. Demand forecasting is considered as a critical part of push systems since order releases have to be designed ahead of actual clients' orders. Also, any serious discussion that relates to capacity planning involves adjusting the company outputs with market demands. Other important management problems include maintenance as well as operation policies.


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