The role and importance of effective operations management

918 words (4 pages) Essay in Business

5/12/16 Business Reference this

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In the world of organisation there are many essential parts of successful operation. Many people believe that marketing, planning, production sales are the most important part of any business but after research or study its proves that operation management is moral fibre of any business process. Operation management includes all aspects of business process and connected them to create efficient and innovative process.


Operation management is concerned with the managing the resources that directly produce the organisation’s service or products. The resources usually consist of people, material, technology, and information but may go wider than this. These resources are brought together by a series of process so that they are utilised to deliver the primary service or product of the organisation. Thus, operation management is concerned with managing inputs through transformation processes to deliver outputs.

Role of Operation Management:

The above definition of operations management covers all aspects of an

Organisation that is involved in the creation and delivery of products and

Services to customers. As such, operations management plays a critical role in

The success of organisations. The exact role of operations management can be

Viewed from multiple perspectives. One could look at it as a standalone unitary

Function within an organisation. It is also possible to look at operations

Management as it is practiced across all functional areas in the organisation.

Further still, since outside parties such as suppliers and customers are

Inherently involved, there is a logical reason to view operations management

From this extended perspective that is described as supplychainmanagement.

Aside from the functional role, operations management can be analysed for

The strategic role it plays in organisations. In this section, all these roles are describes.

Operations are mostly seen as basic functional area along with other important area such as finance and marketing. Operation management main function is produce the goods and providing best services to their clients. While operations management has a strong long-term strategic role to play In organisations, it has an equally strong short-term, daily operational role as Well. A large part of operations management deals with the planning, organising, controlling, leading and monitoring of day-to-day use of resources. Somebody has to run and oversee the daily activities of the organisation’s Production of its goods and services, and this is indeed a key part of operations Management. In support of these operational activities, a plethora of tools and techniques have been developed over time to assist in the detailed and localised decision-making and management processes. Many of these are quantitative models, whilst others are more conceptual in nature. Many of these are discussed throughout this book.

As an example: Reliance Industries of India when it started it only deals with petroleum products ,but to survive in this competitive world , reliance industry change it policy and take a decision to expand there industry. For this recently it starting reliance super mall in India. In this mall the customer get all basic products. but after some time it again research that this mall are not reaching to some backward areas of India, so for that it start super store in which the rural area people get the products by cheaper price also with this it also provide home delivery service. For stick this customer they also started membership card and a point system. Now his new project is put a step in to milk industries for that he directly dealing with milkmen and than provide good quality milk to their customers. There are also some negative points and sides of this industries. Reliance Industry opened Reliance mall in one state of India just like Gujarat in this state there have already one competitor for Reliance .for beginning time its have good sales because of its good skims and marketing policy. Because of transportation problem n there is dispute between supplier and some small vendors now its in trouble .because of not getting services and products on time customer move to its competitor again. By seen this example we can say that because of not proper operation management the company is now in trouble.

Importance of operation management:

Its helps company in R&D department to finding a way of making existing production and provision of services more cost effective, the modification of existing products and services and development of new products and services. Its also helps in technical, purchasing and marketing decision. In technical decision with help of this the company can increase its productivity and services. Operation management helps in purchasing decision at which cost company have to buy to raw material and how it reduced its total cost. Its also helps in human resources function, the day to day supervision and motivation of employees will often be an operation management function. In a traditional organised factory, individual workers will probably report directly to a foreman or supervisor who will then report to a works or departmental managers. Such operation managers might also be given responsibility for the recruitment and training of staff.


After discussing this above points we can says that operation management is necessary process of every organisation. In nut shell we can say that operation ma6nagement, its helps in every other function like management, planning, etc.


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