Operation Management & Decision Making Model

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Yes! I agree with this statement because as argued by Badarudin Mat Isa. and Anuar Alias
(2014) “operations management involves a process of planning, organizing, and supervising,
therefore making significant improvements for higher profitability”. Irrespective of the type
of organization, whether a company operating solely for profit, government agency or non-
profit company, the necessary accustoming in daily life operations is supporting the
company’s strategic goal, and are foregoing by measure as well as in-depth analysis. In an
organization, operation management is multi-disciplinary, together with marketing and
finance. It makes sure that the labour and material are used most efficiently and effectively,
taking care of the maximization of output.
In other words, operation management can be understood as a blend combination
of logistics as well as supply chain. In both these areas, operation management has a firm
foundation. For instance, in operation management, understanding global trends for meeting
the demands of the clients is quite critical. According to Corrêa (2012) in case of logistics, a
considered and careful usage of resources and cost-effectiveness significantly has become
essential in a time where resources can be scarce, and expectations of the customer have
skyrocketed.
Moreover, the requirement of operation management is familiar with a variety of disciplines,
by tradition incorporating management, factory maintenance and equipment, and general
administration. The Smartsheet (2020) states that the operation manager must know about the
strategic policies, essential planning of resources, production, and system of manufacturing as
well as their analysis. Also, principles of cost control and production are of significance.
The UKEssays.com (2020) have mentioned that the foremost objective of any operation is
using the available resources productively. A translation of high productivity takes place into
higher profit and lower costs for any given price. Thus, operations are a functioning system
transforming input into the higher-value output. The ratio of the output value achieved to the
used inputs is for expressing productivity, i.e., a measure of the efficient use of resources.
The economic output value in any operation should be more than the input value in operation.
The resources used include storage space or land, labour, materials, financial resources,
energy, and water. The UKEssays.com (2020) on the globalization of operation has stated
that we find the forces of globalization, such as a reduction in barriers of trade, feasible
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Productivity=Output/Input