Operations Management: Key Functions, Approaches, and Importance

Introduction
• Operations is concerned with proper conversion of raw materials and labors
which achieve maximum efficiency in its business operations.
• It is concerned with proper designing and controlling of production process to
achieve maximum efficiency in its production process.

Key Operational Functions
Control and Distribution Systems- It is the major important function concerned
with operational management as it is responsible for controlling the production
process and ensuring proper distribution of products. Efficiency of the control and
distribution system can be controlled by adopting a strong control system.
Process Design- Process Designing is a vital function of the operational
management as by adopting the effective production process which involves the use
of least possible resources and assist the company to gain more productivity.

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• Forecasting- It is the major function which includes proper estimating demand
of customers and producing products accordingly. This would avoid wastage of
resources and achieves maximum efficiency in its operations.
• Managing quality- Quality management plays an active role in selling products
to customers. Proper quality will remove defects and wastages in production
process and achieves maximum profit for the business.

Key approaches to Operational Management
Enterprise Car Rental Company uses Enterprise Car Rental Company uses various
approaches to operational management to eliminate defects in production process and
achieves maximum profit.
• Six Sigma
 Lean manufacturing
 Total quality Management
 Queuing Theory
 Just in time
 Kaizen approach