Operations management implements business strategies to create optimum efficiency through the design, execution and control of operations that convert resources into desired goods and services.
The two areas of operations management which I believe are most relevant to current business circumstances are capacity management and risk management.
The situation with capacity management is the constant adjustment of the capacity of the organization’s resources to meet the planned and unplanned demands of the customers. The capacity is measured by forecasting the demand fluctuations utilizing techniques which involve both the judgmental and quantitative methods used in making pricing decisions, assessing future capacity requirements, and making decisions to enter new markets. The accuracy in forecasting of demand is a critical issue as this plays a role in every functional activity of the company. This is important specifically to the operations managers because it is not effective and not possible to plan for future activities when choosing a reactive approach. They need to be proactive and closely estimate future demand in order to meet the customer’s needs.
Some issues can exist even though an organization is fully engaged with risk management, there are several potential causes of failure that do affect business operations. The organizational failure is typically the failure of procedures and processes where an example would be a current remuneration policy to motivate employees which is ineffective. More importantly would be human failure which is taken for granted as there are quality control and assurance procedures in place. An example is working documents are approved and submitted to the customer at the risk of missing a scheduled deadline with pending revisions to be completed at a later date which does not comply with the procedure.