What are the four major decision areas in operation management?

Asked By: Akli Appelhoff | Last Updated: 22nd February, 2020
Category: business and finance business administration
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There are four major decision areas in supply chain management: 1) location, 2) production, 3) inventory, and 4) transportation (distribution), and there are both strategic and operational elements in each of these decision areas.

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Keeping this in consideration, what are the 10 decision areas of operations management?

Google: 10 Decision Areas of Operations Management

  • Design of Goods and Services.
  • Quality Management.
  • Process and Capacity Design.
  • Location Strategy.
  • Layout Design and Strategy.
  • Human Resources and Job Design.
  • Supply Chain Management.
  • Inventory Management.

Secondly, what are the major areas of decision making? The three major areas of decision making can be divided decision, financial decision and investment decision. Investment decision relates that where should the funds and in what proportion should they be implied. Financial decision is about procurement of funds.

Accordingly, what are operations management decisions?

An operating system utilises resources to convert inputs into outputs in the form of goods or services. Conventionally, operations management is defined as the task of designing, establishing, planning, running, controlling, maintaining and improving such systems.

What are the areas of operations management?

Levels of Operations Management You can think of operations management as three levels: strategic, tactical, and operations. To achieve the company's goals, operations managers develop strategies. Under those broad strategies are tactics, or specific tasks and steps to implement the strategies.

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What are the major decision responsibilities of operations management?

Five Decision Areas
However, one can analyze the operations function using 5 major decision responsibilities: process, capacity, inventory, work force, and quality. Process -- Make decisions about the physical production process, technology, and layout.

What is Operation strategy?

A plan specifying how an organization will allocate resources in order to support infrastructure and production. An operations strategy is typically driven by the overall business strategy of the organization, and is designed to maximize the effectiveness of production and support elements while minimizing costs.

What is the scope of operations management?

Operation management means administration of business activities for attaining higher efficiency. It is a process of planning, organising and supervising the operations of business for better productivity. Operation management aims at reducing the cost to business by avoiding any wastage of resources.

What is an operational decision?

Operational decisions or Operating decisions are decisions made to manage day to day business. Any firm which is into any kind of business is faced with 100 decisions they have to take in a day. These will be as mundane as refilling the water cooler, to as stressful as fulfilling a customers order within minutes.

What is Operations Management and why is it important?

Operation management is obligatory for organizations to manage the daily activities seamlessly. With its help, an organization is able to make good use of its resources like labor, raw material, money and other resources. Operation Management is important to improve the overall productivity.

What are the operations management strategies?

There are three ways that firms strategize to meet mission: differentiation, cost leadership, and response. Operations managers turn these into tasks to be completed in order to deliver goods and services cheaper, better, or more responsively.

What are the objectives of operations management?

Objectives of Operations Management
Customer Service: The primary objective of operations management, is to utilize the resources of the organization, to create such products or services that satisfy the needs of the consumers, by providing “right thing at the right price, place and time”.

What is production management decision?

Production management means planning, organising, directing and controlling of production activities. Production management deals with converting raw materials into finished goods or products. Production management also deals with decision-making regarding the quality, quantity, cost, etc., of production.

What are two major responsibilities of operations manager?

So operations managers are responsible for managing activities that are part of the production of goods and services. Their direct responsibilities include managing both the operations process, embracing design, planning, control, performance improvement, and operations strategy.

What are the types of operations management?

In managing manufacturing or service operations several types of decisions are made including operations strategy, product design, process design, quality management, capacity, facilities planning, production planning and inventory control.

What is Operation function?

Operations on Functions. Functions with overlapping domains can be added, subtracted, multiplied and divided. If f(x) and g(x) are two functions, then for all x in the domain of both functions the sum, difference, product and quotient are defined as follows.

What is Operation Management example?

The Goal of Operations Management
For example, if an organization makes furniture, some of the operations management decisions involve the following: purchasing wood and fabric, hiring and training workers, location and layout of the furniture factory, purchase cutting tools and other fabrication equipment.

What is another name for Operations Manager?

In service-oriented businesses, the person responsible for the operations manager role is often called by another name, one that addresses the service being offered. Examples include project manager, consultant, lawyer, accountant, office manager, datacenter manager, etc.

How are the four areas of operations control interrelated?

The four areas of operations control: purchasing, inventory control, scheduling, and quality control are interrelated because of their focus on customers. While they are all obviously parts of a business, they are focused on making the lives of customers better, and easier.

What are the four international operations strategies?

Together these two factors generate four types of strategies that internationally operating businesses can pursue: Multidomestic, Global, Transnational and International strategies.

What is the history of operations management?

The history of operations management can be traced back to the Second World War when various researchers undertook complex studies to understand the various basic processes that influenced the course of army operations such as logistics, troop movement, supply routes etc (Pycraft, 2009).

What are the four types of decision making?

The four styles of decision making are directive, conceptual, analytical and behavioral options.