{"id":926,"date":"2015-05-01T21:56:49","date_gmt":"2015-05-01T21:56:49","guid":{"rendered":"https:\/\/courses.candelalearning.com\/masterybusiness1xngcxmaster\/?post_type=chapter&p=926"},"modified":"2017-04-19T17:27:57","modified_gmt":"2017-04-19T17:27:57","slug":"operations-management","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/suny-hccc-introbusiness\/chapter\/operations-management\/","title":{"raw":"Operations Management","rendered":"Operations Management"},"content":{"raw":"\"A<\/a>\r\n\r\nIt's one thing to be in charge of getting\u00a0Thanksgiving dinner on the table, but it's another to manage\u00a0a\u00a0complex manufacturing process. Before we explore\u00a0what's involved in\u00a0such an undertaking, let's begin our study of processes and operations by defining some key terms you will use throughout this module.\r\n\r\nOperations management<\/strong>\u00a0is the area of management concerned with designing and controlling the processes of producing goods and services.\u00a0It involves ensuring that\u00a0business\u00a0operations are\u00a0efficient\u00a0in terms of using as few resources as needed and\u00a0effective\u00a0in terms of meeting customer requirements. Put differently, operations management is concerned with managing the process that converts inputs (in the forms of\u00a0raw materials,\u00a0labor, and\u00a0energy) into outputs (in the form of goods and\/or services). That process can be as simple as milling trees into lumber or as complex as building an international space station.\r\n\r\nAn\u00a0operations manager<\/strong> is in charge of making sure that production processes run smoothly. That includes fine-tuning production processes to ensure quality, holding down the costs of materials and labor, and cutting costs that don\u2019t add value to the finished product. As you might expect, the role of an operations manager is broad, encompassing many operational areas. While other managers may focus on a specific area, such as finance, accounting, or human resources, an operations manager interacts with every functional area within the organization. This is because operations management includes so many different kinds of tasks\u2014logistics, budgeting, supplier relations, purchasing, staffing, and many more. As globalization has increased competition, the operations manager's job responsibilities have increased in both scope and importance.\r\n\r\nOperations Management in Service Industries<\/strong>\r\n\r\nIn businesses that produce services, the need for operations management may seem less obvious, since they don\u2019t produce tangible goods. Operations management is all about transformation, though\u2014taking inputs and transforming them into outputs\u2014and it involves things like suppliers, supply chains, and logistics. All of these things are present in service industries. Consider how \u201coperations\u201d play out in a service business\u2014let\u2019s say in a theme park like Wally World. Although the company doesn\u2019t manufacture products, it is still producing an experience. The following breakdown gives you an idea of how and why operations management is so important to this kind of business:\r\n