Operations Management and its Objectives

Objectives of Operations Management

Operations management involvesobjectives thecan methodicalbe executioncategorized into two primary areas: customer service and resource utilization.

Customer Service

The first objective of activitiesan operating system is customer service, which aims to achievesatisfy pre-definedcustomer objectives. It encompasses various tactical decisions, such as scheduling, resource allocation, inventory management, quality control,needs and processexpectations. optimization.

Ensuring

Keycustomer Objectivessatisfaction is a key goal of Operationsoperations Management:

management.

High-QualityThe Output:

operating

system
• Producingmust goodsdeliver products or services that meet orspecific exceedrequirements qualityconcerning standards.
specification,
• Ensuringcost, theand outputtiming.
  is

  The deliveredprimary inobjective can be summarized as providing the right quantityproduct or service at the right price and at the right time.

time.
• Achieving

  Aspects thisof Customer Service

  Table 1.2 outlines the key aspects of customer service across different functions:

  Principal Function	Primary Considerations	Other Considerations
  Manufacture	Goods must meet a given, requested, or acceptable specification.	Cost (purchase price or cost of obtaining goods) & Timing (delivery delay from order/request to receipt).
  Transport	Management of a given, requested, or acceptable specification.	Cost (cost of movements) & Timing (duration of movement, waiting time from request to commencement).
  Supply	Goods must meet a given, requested, or acceptable specification.	Cost (purchase price or cost of obtaining goods) & Timing (delivery delay from order/request to receipt).
  Service	Treatment must meet a given, requested, or acceptable specification.	Cost (cost of movements) & Timing (duration of treatment, waiting time from request to commencement).

  Organizations strive to maintain reliability and consistency in meeting these customer service standards. Operations managers play a crucial role in ensuring these standards are met, directly influencing decisions to achieve the required level of customer service.

  Resource Utilization

  The second major objective contributesof operations management is effective utilization of resources. The goal is to provide customer satisfactionservice while ensuring efficient use of available resources. Inefficiency or inadequate resource utilization can lead to operational and enhancescommercial the organization's reputation.

failure.

ExcellentOperations Customermanagement Service:focuses on:

• UnderstandingMaximizing andthe meetingeffectiveness customerof needs and expectations.resources.
• DeliveringMinimizing productsloss, underutilization, or serviceswaste.
that
• Measuring satisfy customersutilization in terms of quality,time, space, and activity levels.

This objective, referred to as resource utilization, ensures that an organization's potential is fully leveraged.

Balancing Customer Service and Resource Utilization

Operations management must achieve a balance between customer service and resource utilization. An improvement in one area often comes at the cost of the other, requiring careful trade-offs. A satisfactory balance is crucial for overall performance.

Summary of Twin Objectives

Building

strongcustomer

Objective	Description
Customer Service	Ensure customer satisfaction by delivering goods or services with the right specification, cost, and timeliness.timing.
Resource relationshipsUtilization	Achieve agreed levels of utilization for materials, machines, and fosteringlabor loyalty.to optimize productivity.

The balance between these objectives is influenced by market conditions, competition, and organizational strengths and weaknesses. EfficientOperations Resourcemanagers Utilization:play a key role in setting and maintaining this balance.

• Optimizing the use of resources, including people, materials, equipment, and technology.
• Minimizing waste and maximizing productivity.
• Reducing costs and improving profitability.

Tactical Decisions in Operations Management:

To achieve these objectives, operations managers make various tactical decisions, including:

• Scheduling: Determining the timing and sequence of production activities.
• Resource Allocation: Assigning resources (people, equipment, materials) to tasks efficiently.
• Inventory Management: Maintaining optimal inventory levels to meet demand while minimizing costs.
• Quality Control: Implementing processes to ensure quality standards are met.
• Process Type Decisions: Selecting the most appropriate production processes for the product or service.
• Product Mix Decisions: Determining the optimal mix of products to produce to meet market demand.