International Operations Management
What is Operations Management?
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| What is Operations Management? The creation of goods and services requires changing resources into goods or services. Operations management includes all those mechanisms responsible for transforming inputs into outputs, that is changing resources into goods or services. In other words, operations management involves the management of systems or processes that create goods or services to be consumed by the public. The results from the transformations of inputs into outputs do not necessarily have to be goods or services for external customers, as each functional area or department of an organization also needs to carryout its own operations, which would produce goods or services for other functional areas or departments (e.g., the finance office of a college preparing the payroll for the employees—an operation that affects all the departments of the college). As all organizations involve some sort of output-generating transformations, the management of these transformations is a crucial area for any organization. This makes the operational function one of the most ............................................................................. ............................................................................. Elsevier US Job code KIB Chapter: Ch11-H7983 6-12-2006 9:22 p.m. Page:359 Trimsize:7.25 in in Fonts used Sabon & Frutiger Margins:Top:36 pt Gutter:66 pt Font Size pt Text Width PC Depth:43 Lines International Operations Management 359 important functions in an organization, regardless of its type, size, industry, or country of operation. Operations management is one of the four basic functions in an organization. Apart from operations management, these basic organizational functions—also known as line functions—include demand management, money management, and design management. In very small startup companies, the four line functions are indistinct and overlapping with a few people sharing all responsibilities (see Exhibit 11.2). As the organization grows, the line functions often form the basis for the first departments and a functional organization structure, such as the one shown in exhibit 11.3, emerges. 3 In Exhibits 11.2 and 11.3, the various functions perform different but related activities, which are necessary for the operation of the organization. Exhibit 11.4, shows the historical development of operations management. Although the field of operations management is relatively young, its development has been influenced by a number of key events that took place in the twentieth century. In the s, for example, Frederick W. Taylor and his colleagues were among the first to systematically seek the best way to produce. In the late sand early s, scholars began to deal specifically with operations management, as opposed to industrial engineering or operations research. They noted the commonality of problems faced by all production systems and emphasized the importance of viewing production operations as a system. They also stressed the useful application of waiting- line theory, simulation, and linear programming, which are now standard topics in the field. 4 Download 340.14 Kb. Share with your friends:
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