Goals and Objectives of Operations Management

Important points from Operations Management by Chase, Jacobs, Acquilano


At the most fundamental level, operations management is about getting the day-to-day work done quickly, efficiently, without errors, and at low cost.

The day-to-day processes that make up a firm's activities should be done in the same efficient manner (as individuals do their daily morning activities to get ready for the day).

In addition to making processes work right, an essential feature of operations management is helping companies create dramatic improvements in customer service and reductions in cost.

Various concepts and tools are employed by companies around the world to craft efficient and effective operations. Efficiency means means doing something at the lowest possible cost. The goal of an efficient process is to produce a good or provide a service by using the smallest input of resources. These important resources are material, machine (equipment), man (labor), energy, and information/IT resources. Industrial engineering has a special focus on efficiency in engineering processes and systems.

Effectiveness mean doing the right things to create the most value for company.  There are multiple aspects or attributes of effectiveness. The products supplied must satisfy the needs  of customer and a want has to be created for them. The specification has to be acceptable to the customer, the price has to be acceptable and the delivery terms have to be convenient.

Operations Management (OM) is defined as as the design, operation, and improvement of the systems that create and deliver the firm's primary products and services.

The classic performance objectives of the operations are: quality, flexibility, speed, and price (or cost of production).