Operations management system
Operations management is the process of management that executes the processes or operations to convert input into output which is in the form of physical products or services. It acts as operations Management Act as a system. From the system’s perspective of operations management, we will come to know all the areas such as human resource management, financial management, production management, and other areas are interconnected and interdependent with each other. All these parts of the system impact the common result that is output which is in the form of physical products either physical products or services.
The system can easily understood as the different parts are interconnected and executed in a sequence of order to get the specific output which is common. We have many examples of systems such as computer systems, education systems, political systems, and operations management systems. The common fact in all these systems is the interconnection of different parts or activities with a sequence of execution to get the specific output or common output.
Figure 1.1 shows the system’s perspective of operations management where all the areas contribute to executing the different types of operations to convert the input or input sources into either physical output that is product or service.
Operation management as a transformation process
Fig. 1.1 Operations Management as a Transformation Process
In Figure 1.1, there is input, transformation process, and output. Simply this figure shows how operations management works. In this figure, input may consist of raw materials, Machinery or technology coma skilled employees to execute the operations, processes or methods, tools and equipment, and finance. Output consists of physical products as well as services if the company is producing services. In the case of physical products, the operations management converts all the raw materials or parts of the products into physical products that meet the customer’s expectations or demand. Where is in case of the services the organization or operations management uses all the input sources such as physical equipment employees process technology to deliver the services that fulfill the needs of the customer.
The transformation process of operations management ensures the product is produced with acceptable specifications and quality standards. In Figure 1.1 during the transformation process, there is one more operation that is monitoring. This monitoring involves comparing the actual output with the expected output or standard output. If there is a difference or much more significant difference between standard output and actual output again the transformation forces executed to produce the product with acceptable specification and standard quality.
A systems perspective of operations management
Fig. 1.1 System Perspective of Operations Management
Figure 1.2 shows the systems perspective of operations management where different functional areas’ activities are interrelated and influenced or contribute to executing the operations. This speaker shorts the system’s perspective of operations management where different functional areas are interconnected and contribute to the execution of operations management to get the expected output. The expected output may be in the form of physical products or services.
System Relationship between human resource and production
In the context of the systems perspective of operations management, the functional areas such as human resource management interconnected and influence production management. Selection of the right kind of people in the production management department is the responsibility of human resource management. The right kind of people contribute to the execution of operations towards getting the expected or standard output. If the selected people or employees cannot contribute as much as it has to contribute then the output which may be in the form of physical products or services will not be in the expected standard.
System relationship between finance and production
financial management Provides the required finance for the purchasing of quality raw materials, advancement in technology, purchasing of the tool solo equipment, or any other resources to execute the operations. Financial management plays an important role in making available all the resources to the expected standard to execute the operations towards getting the expected output.
In this way, all the functional areas such as marketing management human resource management, and production management are interrelated and interdependent with each other in such a way that they bonded in a system that runs the operations management practices to get the expected output which in the form of physical product or services.
Difference between production and operations management
The meaning of production management and operations management is the same as both are involved in converting input into output. Production management converts the physical resources such as raw material parts into the physical product whereas operations management connotes all the physical resources into the physical product as well as services.
Examples
Healthcare services organization such as hospitals providing healthcare service by implementing the operations management practices successfully. Operations management in this organization use the physical resources such as medical equipment human resources such as doctors nurses and compounders and other resources which utilized to provide the health care services in order to diagnose the patient.