Operational Management

Introduction

Activities in an organization can be divided into operations and projects. Whilst operations are ongoing, repetitive and continuous activities in any organization for example finance, accounting, and production. As a consequence, all the efforts of the organization are channeled towards maintenance of operations so as to maintain quality and remain competitive in a globalized environment (Tandoc, 2010:78). In operations one has to typically stick with his or her decisions. In operation management, there is permanence in operations. A continuous process in the shop like purchasing and selling of goods is regarded as an operation. The good features that can be adopted from project management can be combined with operations management. Operations management involves the planning, organizing, directing, and controlling the process of bringing together people, materials, equipment, and methods so as to accomplish a wide range of operational tasks in the most cost effective way. This essay will be about what is operational management and the importance of operational management in the companies.

1. Operational Management

Operational Management is the design, execution, and control of operations that convert resources into desired goods and services, and implement a company's business strategy. Every organisation has an operations function, whether or not it is called ‘operations’. The goal or purpose of most organisations involves the production of goods and/or services. Operations in some form has been around as long as human endeavour itself but, in modern manufacturing and service industry at least, it has changed dramatically over time. To some operations management involves everything an organisation does. In this sense, every manager is an operations manager.

Every organisation has an operations function, whether or not it is called ‘operations’. The goal or purpose of most organisations involves the production of goods and/or services. These pages provide you with an idea of the sorts of tasks and processes that relate to operations management within each of the following industry types.

– Manufacturing products

– Providing insurance cover

– Providing healthcare

– Government

2. The Importance of Operational Management in the Companies

Efficient management of operations is of very utmost importance for both the survival and success of any firm. To ensure that the organization remains competitive in the global business environment, it must ensure a cost effective operations management process

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