Discuss the role operations management plays in producing goods and services?

Answer 1

Operations managers are required to take a series of decisions in the production function. Some functions of production manager are listed below:

• New product research and development -- Operations managers are involved in decisions about the logistics of producing the new product, the costs, the skills necessary, the equipment, and the staff training to make it happen.

• Manufacturing and production -- It is here that operations managers will often have the most impact (depending on the type of business). Manufacturing and production processes need constant review and continuous improvement.

• Supply Chain -- Purchasing prices and levels, as well as, storage of raw materials, inventory, and other product components is part of the job of the operations manager. From an operations standpoint, these are all processes that must be reviewed frequently and improved.

• Quality Management -- Tying back once again to customer satisfaction is the level of quality that must be maintained in both the product produced and the environment in which it is produced. (i.e. Happy workers produce better products.) Operations play a big part in analyzing and improving quality in every facet of the business.

• Sales and Marketing -- Market research and feedback from customers is critical to creating successful marketing programs, as well as for the development of new products. By working with marketing, operations can help the company better fulfill customer needs.

• Finance -- Budget information is important for every department of the company. The operations manager may need to be able to provide costs for each phase of the operation in order to prepare proper budgets and forecast accurate profit/loss information. Replacement and repair of capital equipment are also issues here.

• Human Resources -- Identifying the optimum number of employees for each department, as well as the overall organization of staff and reporting structures can also be part of the operations manager's role.