What isOperation Management?OperationManagement is the branch of Management that deals with the area of product,processes, services and supply chains.
It examines the procurement,development, and application of resources that firms need to deliver the goodsand services their client want.ThePreview of Operation Management ranges from strategic to tactical andoperational levels: Strategic issues include determining the location and size of plants, deciding the structure or telecom network, and technological designs, supply chains. Adroit issues include plant layout and structure, project management methods, and equipment selection and replacement. Operational issues include production scheduling and control, inventory management, quality control and inspection, traffic and material handling, and equipment maintenance policies. Role ofOperation Management in Manufacturing Industry: Production Planning: Operation management manages to plan the production and Manufacturing/Production modules in a company. Production planning utilizes resource allocation of employees, production capacity, and materials. Production Control: Operation manager must constantly plan and observe the activities that make up the process. They must seek and respond to feedback and make adjustments were required.
Quality Control: Finally, the operations manager ensure that the quality standards are maintained and he is directly required in efforts to ensure that goods are produced based on their specifications. Role ofOperation management in Banking and Financial Services Industry:Theoperations team is responsible for the processing and settlement of all thefinancial transactions made at an investment bank or investment managemen1tfirm.TheDivision of Operation is also known as ‘Back Office’, provides supportto the client-facing issues in this department (ClientFacing Department) such as corporatefinance, trading, and corporate banking – sometimes known as the ‘Front Office’. The front office originates business for the bank, andoperations ensure that the business is administered in a controlled, efficient,timely and risk-free manner. They ensure that services, product, and moneychange hands how they are supposed to.
Operationsprofessionals are involved in developing new systems in order to maximizeefficiency and profitability for the bank. They also ensure each transaction iscleared, settled and reconciled according to regulatory and controlrequirements.Role of Operationsin the field of Insurance or other Financial Services Companies: Many financial organizations have found that attempts of cutting the cost and improvingthe efficiency during the financialcrisis have been far less successful than it is hoped and are already provingthat it is difficult to sustain. There is a particular risk that someone mightrespond in an unthinkable way then the operational shocks could damage customerservice.