Tuesday, 31 January 2017

"Operations Management" the new focus in service sector to improve efficiency

Operations Management can be defined as the conversion of inputs 6Ms in to productions of outputs through a transformation process.
Output may be goods produced or services rendered.
If output is goods then it is called production.
6Ms are like men,machines,materials,money,methods and management.


Operation management is a visible face of any company:
This function actually produce the goods and services, it typically involves the greatest bulk of the companies employees and is responsible for a large portion of the firms assets. it has a major impact on the "quality" of goods and cost of production.

It plays a vital role in achieving a firms strategic plans or goals.

Operation management or Production is a primary business function along with marketing and finance,HRD, and material management.


Example to understand better:

HDFC Bank cuts 4,581 jobs in third quarter because of improved efficiency

The bank, which reported its slowest profit growth ever at 15% for the December quarter, saw total headcount reduce to 90,421 as against 95,002 in 30 September 2016
http://www.livemint.com/Industry/ufExTeD1KbYtGjmsj0RWrN/HDFC-Bank-cuts-4581-jobs-in-third-quarter-because-of-improv.html

Another link where operation managers in HDFC are focusing more on M called"Machines"
http://trak.in/tags/business/2017/01/30/hdfc-bank-automation-humanoid-ira/

Scope of Operation management or Production management:
Designing and controlling.

  • Activities related to designing or formulation of the production system.
  • Activities related to analyzing and controlling of production operation after the production system has been activated.

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