1. Operator precedence parsing involves defining precedence relations between operators based on their associativity and precedence. It uses these relations to parse strings based on which operator has higher precedence at each step. 2. The key steps are to find the leading and trailing non-terminals, establish precedence relations between terminals, create a precedence table, and then parse strings using the table. 3. Operator precedence functions can also be constructed by partitioning symbols into groups based on equality, creating a directed graph from the precedence relations, and finding the longest paths between each symbol's function groups. The path lengths give the precedence functions.