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Operations Management refers to the set of business practices that are geared towards optimizing the production process of products and services. It concerns itself with the efficient conversion of raw materials and labour into finished products in an organization. Organizations require supervision during production or service operations and hence different decisions related to product design, process design, operation strategy, quality management, capacity, inventory control and planning of production need to be taken.
Operations Management focuses on planning, supervising and organizing everything related to the production or manufacturing aspect. The process starts with managing the input materials or resources like raw materials, energy and ensuring that the least amount of resources are used for production without compromising quality. Operation Management finds its usage in different sectors including hospital, banking and technology. This along with supply chain, human resources, finance and marketing form an important part of an organization. It also includes strategic planning and overseeing daily production of products and services. Operation managers need to be analytical in order to find new ways to improve the efficiency and effectiveness of service operations or production process.
Operations Management focuses on taking key decisions that are imperative for an organization to efficiently utilize revenue and bring the highest net operating profit possible. To achieve this, it has to follow certain principles which include:
An operations management that is strong and tightly co-ordinate is vital to a manufacturing operation. Hence, understanding the importance of operations management is critical to the success of an organization. These include:
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Advanced Planning and Scheduling (APS) are systems that track expenses of activities which can increase the cost of production of goods. The main objective of an APS is to manage raw materials and production capacity while balancing the plant capacity and demand.
These softwares are increasingly becoming an important part of modern manufacturing processes in order to reduce delivery times while keeping production expenses to a minimum. APS can be combined with Enterprise Resource Planning (ERP) or Material Requirement Planning (MRP) software to increase production accuracy. APS helps operation managers in saving time during the process of creating and modifying inventory plans and production schedules.
ARP can also help in maximizing output from limited resources and increase revenue production. It can concur demand with supply to remove or reduce inventory and allow for taking decisions based on scenarios. By taking advantage of the existing operational data in an organization’s ERP software, APS can help in ramping up production processes.
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