A-Z Popular Blog Operations Search »
Operations Management
Operational Analysis

Operational Performance

Operations Examples

Capacity Management

Operations Management Examples

Operations Planning

25 Functions of Operations Management

 , updated on
Operations management is the direction and control of the core business processes of an organization. Operations includes everything an organization does to create value. This includes the production of products and delivery of services to customers. The following are basic examples of an operations management practice.
Asset Management
Managing operations assets such as infrastructure in a data center.
Capacity Planning
Planning to meet future demand for resources such as production equipment.
Capacity Utilization
The process of using capital and labor efficiently.
Distribution Planning
Planning the delivery of goods to distribution partners and customers.
Facility Management
Managing operations facilities such as factories, data centers or fulfillment centers.
Financial Management
Planning and controlling budgets and analysis of financial performance such as profit & loss.
Forecasting demand for products and services to plan to meet it.
Health & Safety
Managing health and safety risks and compliance to related standards and regulations.
Incident Management
Quickly resolving production issues including workarounds.
Inventory Management
Managing inventory to meet demand and control cost.
Operations Planning
Planning to meet operations goals in a period of time, usually a year.
Operations Reporting
Measuring and reporting operations performance, quality and efficiency metrics.
Operations Strategy
Planning to meet long term operations goals in areas such as production levels, quality, cost and efficiency.
Performance Management
Monitoring and optimizing daily performance such as productivity and efficiency metrics.
Problem Management
Addressing the root cause of production issues.
Process Improvement
Measuring operations processes, optimizing and measuring again.
Process Re-engineering
Restructuring and redesigning operations processes.
The process of acquiring capital equipment, inputs and services for use in operations.
Production Management
The process of executing and monitoring operational processes to produce goods or services.
Production Scheduling
Determining the timing and sequencing of operations.
Quality Assurance
The end-to-end process of meeting quality standards and customer expectations for quality.
Quality Control
The specific process of testing to make sure products and services conform to specifications.
Sales & Operations Planning
Coordinating production with marketing e.g. increasing production volumes to support a marketing campaign.
Supply Chain Management
Managing the movement of components, parts, materials and finished goods across supply chains.
Vendor Management
Managing vendors and suppliers.


Operations generates a firm's revenue and often consumes most of a firm's costs. As such, operations strategy is an primary element of corporate strategy alongside marketing and sales. Operations strategy includes the capital investments required to support business growth and to sustain revenue. It is also common to plan improvements to key operating metrics in areas such as efficiency, productivity and quality.
Mature firms have heavily optimized operations processes that are well understood and extensively measured. This drives efficiencies such as low unit costs that represent competitive advantages.
Operations produces a firm's products and services. As such, operations management is often concerned with quality control and quality assurance. Quality control ensures that products and services conform to specifications. Quality assurance investigates and addresses the root cause of quality problems.
Operations is often extensively automated and measured with information technology. In many industries, information technology is considered an operations function. This may involve delivering systems and applications for non-operations teams such as marketing, sales, human resources and accounting.
Operations is primarily concerned with the day-to-day value creation of a business. This is organized into repeatable processes and practices that are continually monitored, measured and improved.
Overview: Operations Management
Definition (1)
The direction and control of the core business processes of an organization.
Definition (2)
Management of processes that produce products and deliver services.
Related Concepts

Operations Management

This is the complete list of articles we have written about operations management.
Asset Management
Budget Planning
Business Objectives
Business Processes
Capacity Management
Conformance Quality
Continuous Improvement
Fit For Purpose
Goal Setting
IT Services
Operational Analysis
Operational Performance
Operations Examples
Operations Plan
Operations Planning
Performance Improvement
Performance Management
Performance Metrics
Process Metrics
Quality Assurance
Quality Control
Quality Management
Quality Metrics
Quality Objectives
Risk Management
Service Management
Strategic Drivers
Strategic Planning
Vendor Management
More ...
If you enjoyed this page, please consider bookmarking Simplicable.