Refer to below figure: Since many centuries, operations management has been recognized as a significant factor in any country's economic development.The conventional view of manufacturing management began in eighteenth century when Adam Smith recognised the economic benefits of specialization of labour. Taylor implemented Smith's theories and developed scientific management.The operating system must provide something to a specification which can satisfy the customer in terms of cost and timing.
Each measure indicates the extent to which the potential or capacity of such resources is utilised.
This is referred as the objective of resource utilisation.
It also involves product planning, facility designing and using the conversion process.
Activities that establishes a structure of tasks and authority.
Operations managers have a hand in deciding employee levels, inventory levels and capacity.
At the operational level, operations management is concerned with lower-level planning and control.They are pooled together by a number of processes in order to be used for acquiring an organization primary service or a product.Operations management can be understood as a transformation development in which inputs (resources) are by means of this process transformed into outputs (products or services).Operation managers establish a structure of roles and the flow of information within the operations subsystem.They determine the activities required to achieve the goals and assign authority and responsibility for carrying them out.Operations managers must also have the ability to communicate effectively, to motivate other people, manage projects, and work on multidisciplinary teams.Major objective of operations management is to provide good customer service and resource utilisation.They also want to know how the behaviour of subordinates can affect management's planning, organizing, and controlling actions. As operation managers plan, organise, and control the conversion process, they encounter many problems and must make many decisions.They can simplify their difficulties using models like aggregate planning models for examining how best to use existing capacity in short-term, break even analysis to identify break even volumes, linear programming and computer simulation for capacity utilisation, decision tree analysis for long-term capacity problem of facility expansion, simple median model for determining best locations of facilities etc.Operation management can be defined as an area of management which is usually concerned with designing and controlling process of production and also in redesigning business operations in production of goods and services.This process is concerned with planning, organizing and supervising in context of production and manufacturing or provision of services.