Operational

Management
Organization Management

Presented by:
Valerie Elevencione
Jasmine Gallo
Contents
- What is Operational Management
- Importance of Operational Management
- Advantage of Effective Operation To The Business
- Operation As A Function
- Operation As An Activity
- Operational Managements Contribution In Society
- Types of Operations Management
- Inputs and Outputs of a Production System
- Responsibilities of Operational Management
- 3 Operation Management Decision
- Roles of Operation Management
 It is an area of
management
concerned with
designing and
controlling the process
of production and
What is redesigning business

Operational
operations in the
production of goods or

Management? services. is the process

that generally plans,
controls and
supervises
manufacturing and
production processes
and service delivery.
 The collection of people, technology, and systems
within a company that has primary responsibility for
providing the organtization's products or services.

The management of the direct recourses that are

required to produce and deliver an organization's
goods and services.

What is A discipline and profession that studies and practices

Operation
the process of planning designing, and operating
production systems and subsystems to achieve the
goals of the organization.
Management? The business function responsible for planning,
coordination, and controlling the resources needed to
produce a company's products and services.

Item 5
20%
Item 1
20% The management of the conversion process that
Item 4
20%
Item 2
20% transforms inputs into outputs in the form of finished
goods and services.
Item 3
20%
 Importance of
Operational Management
Operations management is
important in a business
organization because it
helps effectively manage,
control and supervise
goods, services and people.
 An effective
operation can give
FOUR TYPES of
advantage to the
business:
 3.) Can reduce the amount of
investment (capital employed)
1.) Can reduce the cost necessary to produce the
products and services by goods and services by being
being efficient. effective and innovative in the
use of resource.

2.) Increase revenue 4.) Provides the basis for

through increased customer innovation by building a
satisfaction in producing solid base of operations
quality goods and services. and knowledge.
Operation as a Function
Meaning the part of the organization which
produces the products and services for the
organization's external customer.
Operation as an Activity
Meaning any processing of input resources in
order to produce products and services, for
either internal or external customer.
 Operational Management's
Contribution in Society
The operation management contributes to the
betterment of society because it can increase the
standard of living among the society. Standard of
living can be influenced by ability to increase the
productivity, gross domestic product, and lower
cost of goods and services.
4 Types of Operations
Management CUSTOMERS

Every business operates along FINANCE

four basic focus dimensions:
finance, customers, internal
processes, and learning and
innovation. LEARNING
AND
These theoretical divisions of INTERNAL
INNOVATION
operations management come PROCESSES
from the research of Robert S.
Inputs and Outputs of a Production System

Inputs
External Market Primary Resources
Legal Competition Materials
Economic Customer Desires Personnel
Social Product Info Capital
Technological Utilities

Direct Indirect
Products Waste
Services Pollution
Technological Advances

Outputs
 Responsibilities of
Operational Management
 Planning Organizing
Capacity Degree of Centralization
Location Process Selection
Product and Services
Make or Buy Controlling/Improving
Lay Out Inventory
Projects Quality
Scheduling Costs
Productivity
Directing
Incentive Plans Staffing
Insurance of Work Orders Hiring/Laying Off
Job Assignments Use Overtime
3 Operation
Management
Decisions
STRATEGIC TACTICAL OPERATIONAL
the decisions that are decisions and plans that decisions made to manage
concerned with whole concern the more detailed day to day business.
environment in which the implementation of the involves short time horizon
firm operates, the entire directors' general strategy, or an uncertainty or risky.
resources and the people usually with a medium-
who form the company and
term impact on a company.
the interface between the
Tactical points requiring
two
decisions include, but are

not limited to: Size and
structure of a work force.
 The Operations Manager role is
mainly to implement the right
processes and practices across
the organization. The specific
duties of an Operations Manager

Role of
include formulating strategy,
improving performance,

Operation
procuring material and resources
and securing compliance.
Recap:

Manager Operations: The part of a business

organization that is responsible for
producing goods or services.

Operation Management: The

management 3 of system or
procedures that create/or provide
services.
Primary function of the
operations manager is to
guide the system by decision
making.
System design decision
System operation decision
THANK YOU!