Operation to ensure that goods are produced
Operation Management deals with design and management of product, processes, services and supply chains. It considers the acquisition, development, and utilization of resources that firms need to deliver the goods and services their client want.The Preview of Operation Management ranges from strategic to tactical and operational levels:Strategic issues include determining the size and location of manufacturing plants, deciding the structure or telecommunications network, and designing technology supply chains.Tactical issues include plant layout and structure, project management methods, and equipment selection and replacement.Operational issues include production scheduling and control, inventory management, quality control and inspection, traffic and material handling, and equipment maintenance policies.Role Of Operation Management in Manufacturing Industry:Production Planning: During production planning, operation manages to determine how good will be produced, where production will take place, and how manufacturing facilities will be laid out.Production Control: Once the production process is underway, operation manages must continually schedule and monitor the activities that make up the process. They must solicit and respond to feedback and make adjustments were needed. At this stage, they also oversee the purchasing of raw materials and the handling of inventories.Quality Control: Finally, the operations manager is directly involved in efforts to ensure that goods are produced according to specifications and the quality standards are maintained.Role of Operation management in Banking and Financial Services Industry:The operations team is responsible for the processing and settlement of all the financial transactions made at an investment bank or investment management firm.The operations division, also known as ‘Back Office’, provides support to the client-facing departments, such as trading, corporate finance, and corporate banking – sometimes known as the ‘Front Office’. The front office generates business for the bank, and operations ensure that the business is administered in an efficient, controlled, risk-free and timely manner. They ensure that products, services, and money change hands how they are supposed to.Operations professionals are involved in developing new systems in order to maximize efficiency and profitability for the bank. They also ensure each transaction is cleared, settled and reconciled according to regulatory and control requirements.Operations in Insurance/other financial services Companies :Many financial services organizations have found that their attempts to cut costs and improve efficiency in the wake of the financial crisis have been far less successful than hoped and are already proving difficult to sustain. There is a particular risk that knee-jerk operational shake-ups could damage customer service or jettison the talent the business needs to capitalize on an upturn.