Operations Management in Business Lo1-Lo2 - Unit 34 Operations Management in Business

Unit 34 Operations Management in Business

LO1 Understand the nature and importance of operational management

1.1 explain the importance of operational management

Operations management involves the strategic implementation of programs, techniques, and tools for reducing costs and improving quality. By definition, operations management is the organization and controlling of the fundamental business activities of providing goods and services to customers. Design, execution and control of a firm’s operations that convert its resources into desired goods and service for consumers and implement its business strategy.

Operations management is essential to any organization because they are responsible for the daily operations to sustain, protect, and project an organizations operational side of things. This is accomplished by converting organizations’ inputs into outputs in the most optimized result. Inputs are the resources such as raw materials, information, labour, or the customer itself. Outputs are the finished goods and services, or product.

Importance of operational management can be illustrated by following diagram:

Operations and hence their management are central to any business regardless of functions.

1.2 explain the need to produce safely; on time; to cost; to quality and within the law

Operations Management objectives must meet customer requirements / competitive priorities, which are as follows:

* HIGH QUALITY

* LOW COST

* QUICKER RESPONSE TIME

* ADAPTABILITY / FLEXIBILITY

* RELIABILITY OF SERVICES OFFERED

To ensure competitive advantage then there is a need to address each of these aspects

1. The need to produce safely. The safety procedures must be installed and followed to ensure not only the quality of production, but also first and foremost support productivity and well-being of the staff.

2. The need to produce on time. The delivery schedules committed to customers have to be kept to build...