Asset ManagementManaging operations assets such as infrastructure in a data center.
Capacity PlanningPlanning to meet future demand for resources such as production equipment.
Capacity UtilizationThe process of using capital and labor efficiently.
Distribution PlanningPlanning the delivery of goods to distribution partners and customers.
Facility ManagementManaging operations facilities such as factories, data centers or fulfillment centers.
Financial ManagementPlanning and controlling budgets and analysis of financial performance such as profit & loss.
ForecastingForecasting demand for products and services to plan to meet it.
Health & SafetyManaging health and safety risks and compliance to related standards and regulations.
Incident ManagementQuickly resolving production issues including workarounds.
Inventory ManagementManaging inventory to meet demand and control cost.
Operations PlanningPlanning to meet operations goals in a period of time, usually a year.
Operations ReportingMeasuring and reporting operations performance, quality and efficiency metrics.
Operations StrategyPlanning to meet long term operations goals in areas such as production levels, quality, cost and efficiency.
Performance ManagementMonitoring and optimizing daily performance such as productivity and efficiency metrics.
Problem ManagementAddressing the root cause of production issues.
Process ImprovementMeasuring operations processes, optimizing and measuring again.
Process Re-engineeringRestructuring and redesigning operations processes.
ProcurementThe process of acquiring capital equipment, inputs and services for use in operations.
Production ManagementThe process of executing and monitoring operational processes to produce goods or services.
Production SchedulingDetermining the timing and sequencing of operations.
Quality AssuranceThe end-to-end process of meeting quality standards and customer expectations for quality.
Quality ControlThe specific process of testing to make sure products and services conform to specifications.
Sales & Operations PlanningCoordinating production with marketing e.g. increasing production volumes to support a marketing campaign.
Supply Chain ManagementManaging the movement of components, parts, materials and finished goods across supply chains.
Vendor ManagementManaging vendors and suppliers.
NotesOperations 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
The direction and control of the core business processes of an organization.
Management of processes that produce products and deliver services.