21. Operations Management

According to Stoner, the term operations refers to the way in which members of an organization convert inputs (labor, money, supplies, equipment, technology, and information) into products, goods, or services.

A productive organization produces material goods, for example cars or computers. And a service organization produces intangible goods, such as hospitals or transportation.

Continuing with Stoner, Operations Management refers to the complex series of administrative activities involved in planning, organizing, directing and controlling the operations of an organization.

It should be noted that productivity, the relationship between inputs and outputs, is a measure of efficiency of an administrator or employee, in terms of the use of the scarce resources of the organization to produce goods and services.

We can also mention that it is important to increase the training of workers, knowledge and skills that are directly related to the performance of work. And on the other hand, you must produce quality products and services that customers want, at reasonable prices.

Finally, the four fundamental competitive priorities in Operations Management are: price, quality grade, quality reliability, and flexibility.

August 2023