Operational & Supply Chain Management

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1) Why are companies interested in operational management today? Why is it important? What is the relationship between operational management and supply chain management? How are operations management functions performed at your organization?

Operational Management is the design, operation and improvement of the systems that create and deliver the firm's primary products and services. Companies are interested in learning about Operations Management because it involves the responsibility of ensuring that business operations are efficient and effective. It is the management of resources, distribution of goods and services to customers. By learning about operational management, it is important to know what has been happening in other departments. Marketing managers need to understand what it takes to build and operate production systems in order for them to serve their markets well. Financial managers who plan for capacity expansion need to understand inventories so that they can demand its reduction. Another importance is that companies have to learn operations management and its systematic participation in typical operations management activities may enable a firm to produce a quality product at a competitive price.

Operations management is the planning, control and implementation of the processes that are being used to transform inputs into finished goods and services while supply chain management is involved with the integration of the business processes across the organizations, from material sources and suppliers through manufacturing and processing to the final customer. Operations management and supply chain management should therefore coordinate with each other so that there will be an efficient and timely flow of materials, products, and information within and among organizations.
Operations management is concerned with organizing the process of getting things done and it involves a ...