Operational decisions4/6/2023 ![]() ![]() Operations Management is an area of management which is concerned with the management of the operations function of the organization. operations management is that part of management looking at all the processes and activities, as a whole, on one hand, and the daily activities on the other hand. The functions of operations management outline the essential duties of the operations team It however, needs support and input from other areas of the organization such as: product management, supply chain, inventory, forecasting (production/sales), scheduling, quality management, and facilities planning and management. ![]() The operations function focuses on maintaining the efficiency of the value creation processes and helps the different functions involved in the value chain make smart decisions. Įvery organization has an operations function, whether or not it is called operations or not, and it is mainly responsible for producing goods and services. Operations function is the term used to describe how the core operation of the organization design and functions. Operations functions refer to the departments in an organization that keep the day-to-day activities that keep the business on track. Thanks to the Internet of Things, more and more physical objects are wired to the Internet, expanding both the amount of data and the number of operational decisions that can be managed and improved to increase business value.The term, operations, embraces all the activities required to create and deliver an organization's products (goods and services) to its customers or clients. A company's operations are the core activities that produce and deliver a product. While these decisions are often made about customers, they can also involve suppliers, employees and products. Another characteristic is that these decisions should often be made as quickly as possible and sometimes they are made while clients are waiting. It’s in the nature of operational decisions to be easily repeatable, because one of its primary characteristc is being consistent at following defined rules or guidelines. When you consider a decision that’s been made thousands of times a year, its value increases and often exceeds that of the other types of decisions. But when gathered, this data becomes extremely valuable. When taken individually, their value isn’t as high as the other decisions because it usually involves a single transaction or customer. This type of decision is essential to every organization, no matter what size, because of how often they are made. When a customer contacts your business, places an order, or does any form of interaction, it involves operational decisions. These involve the daily business decisions that are done in high-volume by every business. The most common type of repeatable decision is the operational decision. One of the main advantages of employing Decision Management Systems is that organizations are able to make decisions using the kind of business logic that employees would apply, but without any human intervention. Decision Management Systems excel at automating and managing these repeatable decisions. ![]()
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