We can define operations management as the area of Business Administration dedicated to both research and the implementation of all those actions that tends to generate greater value added through the planning, organization, direction and control in the production of both goods and of services, all aimed at increasing quality, productivity, improve customer satisfaction for customers and reduce costs (Chase, 2006,, 23).
At the strategic level, the objective of the Directors of Operations is involved in finding a sustainable competitive advantage for the company. An alternative definition of the operational management defines the operations managers as responsible for the production of goods or services of the organizations. Operations managers make decisions that relate to the role of operations and service systems of transformation that is used. Thus, the management of operations is the study of decision making in the operations function. From these definitions it is clear that the process of operations management is to plan, organize, manage personnel, direct and control, in order to achieve optimized production function (Chase, 2006, 23).
Concepts of Operation Management in Service System
The concept of operations management in improving the service system is important. The service system can be made better if the operations are properly managed. This vision must be integrated with business strategy and often, but not always, reflected in a formal plan. For major operations management consultants worldwide, operations management has the responsibility of five major decision areas that are process, capacity, inventory, and work force and quality (Krajewski, 2005, 42).
The decisions of this category measure the physical process or installation that is used to produce the product or service. The decisions include the type of equipment and technology, the process flow, the distribution of plant and all other aspects of the physical facilities or services. Many of these decisions are long-term process and cannot be reversed easily, especially when it takes a strong investment of capital. Therefore, it is important that the physical process is designed in relation to long-term strategic posture of the company so that the service system can be improved (Krajewski, 2005, 42).
Decisions on capacity are aimed at providing the right amount of capacity in the right place at the right time. The long-term capacity is determined by the size of the physical facilities, built. In the short term, sometimes you can increase capacity through subcontracts, additional shifts or leasing of space. However, the planning capacity determines not only the size of the facilities but also the appropriate number of people in the operations functions. The operation management is adjusting the staffing levels to meet the demand of the market and the desire to maintain a stable workforce in order to make improvements in the service system. In the short term, the available capacity should be allocated to specific tasks and operations positions with the scheduling of people, equipment and facilities (Krajewski, 2005, 42).
Decisions on operations inventories determine what to order, ask ...