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Operations management is the functional area which focus on designing and controlling the production process and helps in redesigning the business operations which can produce goods and services efficiently and effectively. It focuses on how people organize themselves for productive enterprise means being efficient and how effectively they can produce goods and services in terms of meeting customer requirements.
Operation management also gives clear picture about the role played by operation managers in order to control the production process. Operation management also focus on minimizing the cost of production. Operation management is the costly part of the enterprise because it includes production resource, human resource, supply chain etc.
In manufacturing industry, production of goods from raw material using different process comes under operations. Example – manufacturing laptop using just-in-time process. In service industry, providing service to the customers comes under operations. Dell has successfully implemented JIT manufacturing as an operation strategy. Example – BPO resolving customer queries and complaints comes under operations. HSBC BPO resolve customers’ queries related to bank accounts, cards, mortgage, etc.
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