2.3 The role of the operations managerSome people (especially those professionally involved in operations management!) argue that operations management involves everything an organisation does. In this sense, every manager is an operations manager, since all managers are responsible for contributing to the activities required to create and deliver an organisation's goods or services. However, others argue that this definition is too wide, and that the operations function is about producing the right amount of a good or service, at the right time, of the right quality and at the right cost to meet customer requirements. Show
Activity 2What do you think a typical operations manager does? Take a minute or so to consider. DiscussionA stereotypical example of an operations manager would be a plant manager in charge of a factory, such as an automobile assembly plant. But other managers who work in the factory – quality managers, production and inventory control managers, and line supervisors – can also be considered to be working in operations management. In service industries, managers in hotels, restaurants, banks and stores are operations managers. In the not-for-profit sector, the manager of a nursing home or day centre for older people is an operations manager, as is the manager of a local government tax-collection office and the manager of a charity shop staffed entirely by volunteers. So operations managers are responsible for managing activities that are part of the production of goods and services. Their direct responsibilities include managing both the operations process, embracing design, planning, control, performance improvement, and operations strategy. Their indirect responsibilities include interacting with those managers in other functional areas within the organisation whose roles have an impact on operations. Such areas include marketing, finance, accounting, personnel and engineering. Operations managers' responsibilities include:
Decision making is a central role of all operations managers. Decisions need to be made in:
The five main kinds of decision in each of these relate to:
Activity 3Use the matrix below to analyse your role as an operations manager. In as many of the cells in the matrix as you can, jot down an example of a decision you have made in the last month.
DiscussionYou will almost certainly have left some of the cells in the matrix blank. For example, you may not have been involved (at least in the last month) in designing the operations system, so you may not have made any decisions that belong to the cells in Column A, though you will almost certainly have found some examples to put in Column B and perhaps in Column C also. Similarly, if your area of work does not involve any stocks of materials, you will not have found any for cells in Row 4 (Inventory). However, it is likely that you will have been able to identify decisions you have made that fall in at least a third of the cells of this matrix. If so, you are fulfilling many of the roles of an operations manager. How does operations management work with other business functions?Operations management (OM) is the business function responsible for managing the process of creation of goods and services. It involves planning, organizing, coordinating, and controlling all the resources needed to produce a company's goods and services.
What is the most important function in operations management?Operational planning is the foundational function of operations management. Your duties within this function may include: Monitoring daily production of goods. Managing and controlling your inventory.
What are the main functions of operation management?We can distinguish seven main functions of operation management in the industrial enterprise: planning, scheduling, purchasing, controlling, quality control and inventory control.
How can a focus on operational management theory help an organization function more smoothly?Operations Management Theory refers to the strategies used in structuring and administering business practices to create the highest level of efficiency in an organization. The ability to convert materials and labor into goods and services in the most efficient way possible is what maximizes profits.
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