Operations management is critical to organisational performance, yet there are not enough people adequately trained in this area, argues Jeremy Johnson
The Inside Story - An artical from Supply Management (30th October 2008)
Operations management is defined as "the direction and control of the resources (facilities, people, machines, time and money) that transform inputs into finished goods and services".
It is about managing businesses that have complex networks of stakeholders within a global environment. It covers all types of companies and the whole value chain from cradle to grave - with design at the front end of the product development process, through to end-of-life disposal and materials reprocessing.
While supply chain management deals with the external management of resources and the performance management of outsourced material, components and services, operations management covers the internal management of resources.
The two complement each other - they have many similar areas of expertise, as well as their own distinct skills. For example, both require resource planning to deliver goods and services on time, but supply chain management also requires soft skills to develop good quality relationships and get the best value from suppliers.
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