Operations Management and the Customer
Operations Management is essential as well as challenging for all types of organizations. Manufacturing, retailing and services all perform operations. It is one of the three major functions (marketing, finance and operations) of an organization. Many businesses have come to realize that the operations function is just as important to their firm as finance and marketing. Operations Management focuses on providing quality products or services to the customers by transforming input into output. Ideas and technology are applied to improve the process, improve the performance, and increase productivity. When productivity increases, costs are reduced, and product price can also be reduced. When production methods are improved, the quality of the product improves. When productivity and quality are improved, the customer gets a better product faster. Operations Management is just as important in smaller organizations as it is in large ones. All companies need to produce and deliver their products and services efficiently and effectively. Managing operations in a small or medium size organization can be challenging, but can also have significant advantages. For example, larger companies may have more resources to dedicate to certain tasks or projects, where smaller companies may need to have their employees performing multiple tasks. But a smaller company can sometimes make changes and decision faster, or doesn't have complex systems to reconfigure. Sometimes a few small, but effective changes can make a huge difference in operations without too much effort or interruption. Operations management issues are often the same for small companies as for large ones, and every good company, whether large or small, always has the customer in mind. Getting ahead of the competition, not just with delivery times but with quality as well, is a huge advantage in a competitive market. Keeping the customer in mind in any operations environment, and providing a quality product, on budget, and on time to the customer will bring new customers and keep current customers coming back.