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An Introduction to
Operations Management
Compiled by: Yosef N
School of Graduate Studies
Unity University College
Addis Ababa
March 2008
Contents
Operations Management 1
Origins and Development 2
Craft Manufacturing 3
Mass Production 3
The modern period 4
Key Issues In Operations 5
Building Success With Operations 8
References 10
Operations Management
Operations management is an area of business that is concerned with the production of
goods and services, and involves the responsibility of ensuring that business operations are
efficient and effective. It is also the management of resources, the distribution of goods
and services to customers, and the analysis of queue systems.
APICS The Association for Operations Management also defines operations management
as "the field of study that focuses on the effective planning, scheduling, use, and control of
a manufacturing or service organization through the study of concepts from design
engineering, industrial engineering, management information systems, quality
management, production management, inventory management, accounting, and other
functions as they affect the organization" (APICS Dictionary, 11th edition).
Operations also refers to the production of goods and services, the set of value-added
activities that transform inputs into many outputs. Fundamentally, these value-adding
creative activities should be aligned with market opportunity for optimal enterprise
performance.
Operations management focuses on carefully managing the processes to produce and
distribute products and services. Product management is usually in regard to one or more
closely related product -- that is, a product line. Operations management is in regard to all
operations within the organization.) Related activities include managing purchases,
inventory control, quality control, storage, logistics and evaluations. A great deal of focus
is on efficiency and effectiveness of processes. Therefore, operations management often
includes substantial measurement and analysis of internal processes.
Operations management is a multi-disciplinary field that focuses on managing all aspects
of an organizations operations. "The typical organization consists of the integration of
many different functions. The two most obvious functions are to provide the product or
service and to sell the product or service. Operations management focuses on the function
of providing the product or service. It is concerned with the planning and controlling of all
activities necessary for the provision of the firms product or service." Aspects of
operations management, then, include products or services to emphasize; facility size and
location with respect to customers and suppliers; marketing strategies to attract
clients/customers; techniques and equipment to use to make the goods or to provide the
services; work force management and training; and measurements of quality assurance.
Operations managers apply ideas and technologies to increase productivity andreduce
