Tuesday, February 8, 2011

Operation Management - Definition & Aims

Operations management is concerned with the production, distribution and project management activities carried out in an organization.

The overall aims of operation management are:
1. To create added value for the organization and
2. Help to achieve sustainable competitive advantage by satisfying the demands and needs of customers for the    company's products.
These overall aims are achieved by:
  • The systematic planning and control of all production management activities;
  • Setting and attaining high levels of throughput, quality, and customer service in terms of meeting needs (conforming to specification), delivery on scheduleand after-sales service;
  • Maximizing productivity;
  • Optimizing the use of resources - people, plant, equipment, tools, inventory, premises and information systems;
  • Managing projects in accordance with a planned timetable to deliver required results;
  • Minimizing manufacturing, inventory, maintenance and distribution costs;
  • Taking necessary steps to increase the levels of skill, motivation and commitment in the workforce;
  • Making the best use of computers to achieve maximum efficiency, especially in the planning and control of operations.

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