An operation management deals with all phases in the business. It acts up on the business fields like time, production, services, facilities, procurement, manpower, quality, inventory, logistics, transportation, etc. It also kept focus on new rising product or service. Precise sales forecasting is effectively prepared by an operation management.
In details,
Procurement: It starts from the selection of true vendor, is the vendor that supplies precise quality material with specified quantity in the stipulated time at the right location. An operation management has certain rules through which it scans each vendor. Direct savings of transportation cost, tolls, and other taxes, etc. can be achieved by locating the vendors near to the organization.
Manpower: An operation management implements various systems like allocation, appraisal, and reimbursement to set working norms for employee culture in the organization. It allocates duties according to expertise; tracks a set model for evaluating performance and charts a reimbursement system consequently. It deals with safety, operational environment and working manners.
Production: Production principles are regulated by an operation management. It has ability to research and upgrade the production systems as per requirement of time. It decides the proper utilization of man-machine-money to protract the maximum improvement in productivity.
Quality: Actually, quality creates brand of a product in the market. To maintain the standard of the product, an operation management always gearing up the quality policies by implementing various advanced quality techniques. Quality Control Circle must certify the product by sieving it through proven systems such as Kaizen systems, Six Sigma, TUV, BVQi, DNV, QICS, etc. Now days TQM, “Total Quality Management” is most commonly adopted by big organizations globally.
Inventory: Inventory is the floating asset of the organization where the money held in advance. An operation management takes a challenge to make unused stock digestive and preserve minimum stack of it. It works on setting up the best level of raw material stock called as ‘safety level’ to maintain the supply in rise and fall in demand. Dealing in the inventory control program, the technique JIT i.e. Just-In-Time proved a great result to solve the purpose.
Logistics resource: Logistics means organizations of supplies and services. An operation management places firm strategies on logistics such that it directly shows effect on product cost. The product must available at right place in right time by right transportation cost. Logistic organization must meet the basic logistic management policies to improve their consistent performance.
Administration: Administration is the heart of each organization. Running the all offices of the organization in the various departments is full time action of an operation management. It helps to decide the systems of office culture development. The equipments in the offices must be of new technology and user friendly. Also it helps to keep right person on the right chair through personnel analysis. Hence now it is clear that an operation management lays a hand on almost every field of organization, and shows its precedence in the organization.
