Operations management refers to designing and managing processes to efficiently convert inputs like materials and labor into outputs like goods and services. The goal is to maximize profit by balancing costs and revenues. Operations management deals with issues from strategic planning like plant location down to operational issues like production scheduling. Historically, the field evolved from manufacturing management focused on division of labor, to production management using techniques like statistical process control, to today's operation management taking a systems approach.

2. Operations management refers to the
administration of business practices to
create the highest level of efficiency
possible within an organization.
Operations management is concerned
with converting materials and labor into
goods and services as efficiently as
possible to maximize the profit of an
organization.

3. Operations management (OM) is
defined as the design, operation, and
improvement of the systems that
create and deliver the firm’s primary
products and services

4. Operations management teams design
the method of conversion of inputs
(materials, labor, proprietary information,
etc.) into outputs (goods, services, value-
added products, etc.) that is most
beneficial to the organization. Operations
management teams attempt to balance
costs with revenue to achieve the highest
net operating profit possible.

5. Operations Management deals with the
design and management of products,
processes, services and supply chains. It
considers the acquisition, development,
and utilization of resources that firms
need to deliver the goods and services
their clients want.

6. The purvey of OM ranges from strategic
to tactical and operational levels.
Representative strategic issues include
determining the size and location of
manufacturing plants, deciding the
structure of service or
telecommunications networks, and
designing technology supply chains.

7. Tactical issues include plant layout and
structure, project management methods,
and equipment selection and
replacement. Operational issues include
production scheduling and control,
inventory management, quality control
and inspection, traffic and materials
handling, and equipment maintenance
policies.

9. The concept of Production and Operation
Management since its inception:
Manufacturing Management (1776-1930)
Production Management (1930-1970)
Operation Management (1970-onwards)

10. Manufacturing Management
(1776-1930)- During this period emphasis
was on scientific management dealing
with benefits of specialization and division
of labour.

11. Main Contributors:
1776: Adam Smith Division of Labor
1832: Charles Babbage Specialization by job
assignment, skills, time etc.
1900: F. W. Taylor Time & motion studies using
scientific management developing time and
motion study techniques of jobs.

12. Production Management
(1930-1970)- Here emphasis on technique
of economy efficiency by eliminating
wastage and using sophisticated
technique.

13. Main Contributors:
1930: Inventory Control (F. W. Harris), Human Relation
Movement (Elton Mayo), Statistical Quality Control
(Walter A. Shewhart)
1950: Operation Research (G. B. Dantzi) Mathematical
Application (A. Charnes)
EDI (Herbert Simon) MIS

14. Operation Management
(1970-onwards)- A system model
approach identifying the subsystems,
subcomponents that makes up the
organisation.

15. Main Contributors:
1970 to 1980: Computer application to manufacturing,
scheduling and control operations, Material Require
Planning (Joseph Orlicky) MRPII (Oliver Wight).
1980: Onwards Deming & Juran Material management,
Waste control, JIT, Quality and productivity concepts,
CAD and CAM application in Management. TQM, Total
Productive Maintenance.

16. By Neha Yadav
HR Personnel, MBA(HR)