
Sales & operations planning | Operations strategy |
Operations planning | Demand forecasting |
Capacity planning | Resource management |
Inventory management | Facility management |
Risk management | Quality assurance |
Quality control | Continuous improvement |
Maintenance planning | Supply chain |
Supplier performance management | Operations technology |
Process automation | Workflow automation |
Operations metrics & reporting | Benchmarking |
Cost reduction | Workforce management |
Production planning | Production scheduling |
Procurement | Logistics |
Manufacturing | Production |
Distribution | Workplace safety |
Compliance | Environmental sustainability |
Core Processes
Operations management is concerned with the core value generating processes of an organization. These differ greatly by industry. The following are a few examples of core processes:Procurement
Procurement is the process of developing requirements for inputs and selecting and managing suppliers. This is carefully controlled to prevent fraud and ensure that suppliers are able to meet a firm's requirements in areas such as quality, sustainability and reliability. For example, a fashion company that sources organic cotton from diverse suppliers in multiple countries that monitors each firm to ensure they run their business in a sustainable and ethical way.Supply Chain
Supply chain is the end-to-end process of transporting and storing supplies, goods-in-process and finished goods. For example, a train manufacturer that manages the flow of materials and parts to its factories and the delivery of finished trains to customers.Manufacturing
Manufacturing is the process of producing a physical product. In a manufacturing firm, operations management is primarily concerned with managing supply chain, factories and production lines. Management carefully measures these processes with management accounting techniques to optimize for efficiency, productivity, quality, throughput, turnaround time and other key operating metrics.Production
Managing other types of production besides manufacturing. For example, managing the kitchen of a restaurant as part of hotel operations management.Service Delivery
Service delivery is the delivery of services to customers. For example, a theme park that delivers services such as attractions, food services, performances and guest services. Service delivery can also include the process of operating an information technology service such as a software platform.Customer Service
Customer service is a type of service delivery that involves direct interactions with the customer. For example, the process of managing a call center for an ecommerce company that accepts feedback, answers questions and offers services such as orders, returns and cancellations.Information Technology
Management of information technology may fall under operations. This is common in the IT industry where information technology is produced primarily for customers. It is also common in industries where information technology is focused on automating operations. For example, a bank that views information technology as an operations function that automates, controls, monitors and reports financial transactions.Quality Assurance
Quality assurance is the practice of measuring and controlling quality. This includes the process of addressing the root cause of quality problems. For example, a food manufacturer that tests the quality of products and investigates and addresses the root cause of quality variances.Distribution
Distribution is the process of reaching the customer with your products and services. This includes supply chain and can extend to touchpoints with the customer. For example, retail management may be considered a type of operations management.Overview
Operations management is the direction and control of the processes that create an organization's products, services and customer outcomes. These are often the most automated, systematized and optimized processes in an organization that are continually improved in areas such as cost, quality and speed.
Summary
The following are common examples of operations management functions.
Definition: Operations Management Examples | ||
Type | ||
Definition | The direction and control of the processes that produce a firm's products and deliver its services to customers. | |
Related Concepts |