Operations Management

Operations Management

Operations Management consists of all the activities in which managers engage to produce goods or services. It is the design, operation and control of the transformation process that converts resources into finished goods and services. All operations systems take inputs and process them to make outputs.

Operations management has as a direct bearing on whether the organisation’s objectives such as increased profitability, market share or contribution to the community are achieved.

Operations Management within an LSO establishes:

  • A level of quality of the goods and/or services to be produced
  • Overall cost of production that will be incurred
  • Ability to meet consumer demand

Aims of the Operations System

An operations system within an organisation aims to:

  • Ensure systematic planning and control over all the production activities
  • Maximize the productivity of the organisation
  • Minimize the costs of manufacturing, inventory, maintenance and distribution.
  • Make use of the latest technology within production

Role of an Operations Manager

LSOs that have an operations function is typically broken down into these divisions and areas of responsibility. While not all types of organisations will require each of these sections they are generally used by most LSOs.

  • Materials Manager – Oversees and coordinates Inventory Management which is determining stock levels and ensures that customer services requirements are filled
  • Production Manager – Oversees the Production rates, Labour Costs, Control of waste and Defects of the organisation.
  • Quality Manager – Oversees the Determination of the required standards for the quality of the goods and/or services of the organisation, Creates and publishes the documentation of quality procedures and ensures that the standards and codes of practice are adhered to.
  • Maintenance Manager – Oversees the process of ensuring that equipment is reliable and regularly maintained and controls maintenance costs.
  • Warehouse Manager – Oversees the property at which resources are stored, used or manufactured.