What is Operation Management?
Operation Management is the branch of Management that deals with the area of product design, processes, services and supply chains. It examines the procurement, development, and application of resources that firms need to deliver the goods and services that their client want.
The Preview of Operation Management ranges from strategic to adroit and operational levels:
Strategic issues include determining the location and size of plants, deciding the structure or telecom network, and technological designs, supply chains.
Adroit issues include plant layout and structure, project management methods, and equipment selection and replacement.
Operational issues include production scheduling and control, inventory management, quality control and inspection, traffic and material handling, and equipment maintenance policies.
Role of Operation Management in Manufacturing Industry:
Production Planning: Operation management manages to plan the production and Manufacturing/Production modules in a company. Production planning utilizes resource allocation of employees, production capacity, and materials.
Production Control: Operation manager must constantly plan and observe the activities that make up the process. They must seek and respond to feedback and make adjustments were required.
Quality Control: Finally, the operations manager ensure that the quality standards are maintained and he is directly required in efforts to ensure that goods are produced based on their specifications.
Role of Operation management in Banking and Financial Services Industry:
The operations team is responsible for the processing and settlement of all the financial transactions made at an investment bank or investment managemen1t firm.
The Division of Operation is also known as ‘Back Office’, provides support to the client-facing issues in this department (Client Facing Department) such as corporate finance, trading, and corporate banking – sometimes known as the ‘Front Office’. The front office originates business for the bank, and operations ensure that the business is administered in a controlled, efficient, timely and risk-free manner. They ensure that services, product, and money change hands how they are supposed to.
Operations professionals are involved in developing new systems in order to maximize efficiency and profitability for the bank. They also ensure each transaction is cleared, settled and reconciled according to regulatory and control requirements.
Role of Operations in the field of Insurance or other Financial Services Companies: Many financial organizations have found that attempts of cutting the cost and improving the efficiency during the financial crisis have been far less successful than it is hoped and are already proving that it is difficult to sustain. There is a particular risk that someone might respond in an unthinkable way then the operational shocks could damage customer service.