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Interaction of Operations
Management with other functional areas of Management
OM in Practice
 OM has the most diverse organizational function
 Manages the transformation process
 OM has many faces and names such as;
 V. P. operations, Director of supply chains, Manufacturing manager
 Plant manger, Quality specialists, etc.
 All business functions need information from OM in order to perform their tasks
Business Information Flow
OM Across the Organization
 Most businesses are supported by the functions of operations, marketing, and finance
 The major functional areas must interact to achieve the organization goals
 Marketing is not fully capable of meeting customer needs if they do not understand what
operations can produce
 Finance cannot judge the need for capital investments if they do not understand operations
concepts and needs
 Information systems enables the information flow throughout the organization
 Human resources must understand job requirements and worker skills
 Accounting needs to consider inventory management, capacity information, and labor standards

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Interaction of operations_management_with_other_functional_areas

  • 1. Interaction of Operations Management with other functional areas of Management OM in Practice  OM has the most diverse organizational function  Manages the transformation process  OM has many faces and names such as;  V. P. operations, Director of supply chains, Manufacturing manager  Plant manger, Quality specialists, etc.  All business functions need information from OM in order to perform their tasks Business Information Flow OM Across the Organization  Most businesses are supported by the functions of operations, marketing, and finance
  • 2.  The major functional areas must interact to achieve the organization goals  Marketing is not fully capable of meeting customer needs if they do not understand what operations can produce  Finance cannot judge the need for capital investments if they do not understand operations concepts and needs  Information systems enables the information flow throughout the organization  Human resources must understand job requirements and worker skills  Accounting needs to consider inventory management, capacity information, and labor standards