What is the Purpose of Operations Management? A Comprehensive Guide

Operations management is a business management discipline that oversees, designs, manages and controls the production process and business operations to maximize efficiency. It is an essential part of any organization, as it helps to promote and support efficient business processes. This includes everything from daily production activities to design, operation, management and problem solving, to improving the production system for long-term growth. The purpose of operations management is to balance operating costs with revenues to maximize net operating profit. Professionals in this field strive to manage daily operations based on work in progress and linear workflows, assigning tasks before moving on to the next phase.

They also help organize resources using sound human resource concepts, the right technology, and up-to-date best practices. A hybrid operations management environment takes advantage of both centralized and decentralized operations. In this era of rapidly advancing technologies, an operations manager must have an affinity for technology in order to design processes that are efficient and that comply with technology. Decentralized operations management uses multiple systems, including infrastructure and advanced technologies such as web applications and cloud databases, to coordinate work across global supply chains and across multiple locations. The successful execution of an organization's operations requires a friendly and efficient workflow between various departments, such as sales, production, and accounting. Unlike marketing or finance departments, where managers are responsible for their departments, operations management is an interdepartmental function in which the manager assumes a series of responsibilities in multiple disciplines.

Business management requires extensive general knowledge and incorporates external factors, while operations management requires a high level of operational experience. Research in this field in the Journal of Operations Management focuses on understanding human behavior in order to improve operations management and take advantage of their benefits.