Operation

- In the field of management, an operation refers to the activities and processes that an
organization performs on a day-to-day basis to produce goods or services.
Management
- Management is the process of planning, organizing, leading, and controlling resources
(including people, finances, materials, and information) to achieve organizational goals
effectively and efficiently.
Operation Management
- is the area of administration, or business administration, about how organizations create
by designing business operations, controlling the process of production, and delivering
the services and products of the business.
- Operations management is a critical function within an organization, and it involves
planning, organizing, and controlling various resources and processes to ensure efficient
and effective production.
- It is concerned with making the most efficient use of resources to meet customer
demands while ensuring quality and effectiveness.
- The inner workings of the business (efficiently as possible)
Project Management
- Project management involves the application of knowledge, skills, tools, and techniques
to ensure that projects are completed efficiently and effectively to meet their objectives.
- Effective project management helps organizations achieve their strategic goals, improve
efficiency, reduce risks, and ensure that projects are delivered on time and within
budget.
- Attaining certain goals (methods of processes, skills, knowledge, and experiences)
Operations in the Organization (Core or Focal Point)
1. The marketing (including sales) function – more on selling, the need to persuade a
customer, and also the need to get a customer to purchase a product or service.
o is responsible for understanding customer needs and preferences, promoting
products or services to target audiences, and ultimately driving demand and
sales.
o It plays a pivotal role in creating and maintaining a strong market presence and
brand identity.

2. The product/service development function – They are the ones who develop and release
a new product or service; they also enhance existing products or services that will help
attract possible customers.
o focuses on creating, designing, and enhancing products or services that meet
customer needs and align with the company's goals and strategies.
o This function is instrumental in innovating and staying competitive in the market.
 3. The operations function - The operations function plays a critical role in the day-to-day
functioning of a business and has a direct impact on its ability to meet customer
demands, achieve efficiency, and ensure product or service quality.
The Activities of Core Functions in Some Organizations

The Relationship Between the Operations Function and Other Core and Support Functions of
the Organization
1. Technical Function - The technical function encompasses activities related to the design,
development, implementation, and maintenance of the technical aspects of an
organization. This includes roles in engineering, IT, research and development, and other
technical disciplines. The technical function ensures that technology and systems are
effectively utilized to support the organization's goals and operations.

2. Marketing Function - The marketing function is responsible for understanding customer

needs, creating and promoting products or services, and building brand awareness. It
involves market research, advertising, pricing strategies, and distribution efforts to
attract and retain customers. The marketing function plays a crucial role in driving
demand and sales.

3. Product/Service Development Function - The product/service development function is

tasked with conceiving, designing, and creating new products or services. It involves idea
generation, market analysis, research, design, testing, and launching new offerings. This
function aims to align the organization's product or service offerings with customer
needs and market trends.

4. Information System Function - The information system function focuses on managing

and leveraging technology and information systems to support an organization's
operations and decision-making. This includes roles related to IT infrastructure, software
development, data management, cybersecurity, and ensuring that information systems
align with business objectives.
 5. Human Resources Function - The human resources (HR) function manages the
organization's workforce. It involves activities such as recruitment, hiring, training,
performance management, compensation and benefits administration, and fostering a
positive work culture. HR plays a vital role in attracting, developing, and retaining talent.

6. Accounting and Finance Function - The accounting function is responsible for managing
an organization's financial transactions, records, and reporting. It includes tasks like
bookkeeping, financial analysis, budgeting, tax compliance, and financial reporting to
ensure financial stability and accountability.

Input – This is where everything starts (1st step)

Materials – are substances or physical substances used in the production or creation of goods.
(Such as raw materials, parts, or components)
Information – refers to data that has been processed, organized, or structured in a meaningful
way to convey knowledge, facts, or insights. (More on services)
Customers – are individuals, organizations, or entities that purchase or consume goods or
services offered by a business or provider. (Who pay for and use product or services)
Facilities - refer to the physical infrastructure, buildings, and spaces that an organization owns
or leases to support its operations. These can include offices, factories, warehouses, retail
stores, research laboratories, and more.
Staff - refers to the individuals employed by an organization to perform various roles and tasks.
Staff members can include employees at all levels, from entry-level positions to top executives,
and may encompass full-time, part-time, and contract workers.
1. Changes in the Physical Characteristics of Materials or Customers:

• Meaning: This refers to alterations in the physical attributes or properties of

materials or customers. It can involve changes in size, shape, color, composition,
or other physical characteristics.

o Example (Materials): Heating a piece of metal to change its shape

through forging.
o Example (Customers): A person undergoing a fitness regimen to change
their physical appearance by losing weight or gaining muscle.

2. Changes in the Location of Materials, Information, or Customers:

• Meaning: This involves the movement or relocation of materials, information, or

customers from one place to another. It can be within the same facility or to a
different geographical location.
 o Example (Materials): Transporting raw materials from a supplier's
warehouse to a manufacturing plant.
o Example (Information): Migrating digital files from a local server to cloud
storage for remote access.
o Example (Customers): A retail store opening a new branch in a different
city to reach a broader customer base.

3. Changes in the Ownership of Materials or Information:

• Meaning: This refers to the transfer of ownership or control of materials or

information from one entity or individual to another.

o Example (Materials): Selling a used car to another person who becomes

the new owner.
o Example (Information): Transferring intellectual property rights to
another company through a licensing agreement.

4. Storage or Accommodation of Materials, Information, or Customers:

• Meaning: This involves providing a designated space or place to store, hold, or

accommodate materials, information, or customers safely and conveniently.

o Example (Materials): Storing inventory in a warehouse to ensure it is

safe and accessible.
o Example (Information): Archiving old documents in a secure records
storage facility.
o Example (Customers): A hotel providing accommodation for guests in
rooms or suites during their stay.

5. Changes in the Purpose or Form of Information:

• Meaning: This relates to modifying the intended use or structure of information.

It can involve reformatting, repurposing, or reorganizing data to serve a different
objective.
o Example: Converting a written research report into an infographic for a
more visual presentation, making the information more accessible and
engaging.

6. Changes in the Physiological or Psychological State of Customers:

• Meaning: This refers to alterations in the mental or physical well-being of

customers, such as changes in mood, emotions, health, or behavior.
o Example: After using a meditation app regularly, a customer reports
feeling less stressed and more relaxed, representing a positive change
in their psychological state.