Operational management refers to managing the operations of an organization. Managing the operations means to manage the resources and follow the policies and procedures of any organization. The basic and most important operation of management is to process the inputs into outputs to get desired results. The meaning of operational management contains words i.e. resources, systems, conversion or transformation and outputs. (Business)
These words can be explained as :-
Resources are the man, material and money in the organization. Man or staff is the major or key requirement in an organization. Material is also very important because without availability of material production cannot be possible. And money or capital is required for hiring staff and for purchasing the raw material so that the raw material can be converted into finished products through production.
1There is a system which every company has to follow. Every organization has some policies and procedures which helps the organization to achieve their goals and helps in profit maximization. If the work done in an organization is according to the plan then it helps in attaining the goal of the company. Planning is the first and important step of management. Without planning no other function can be performed in an organization.
Conversion means converted the inputs (i.e. the raw material) into outputs (i.e. finished goods). In an organization raw material can be converted into work in progress and then into finished goods. When the material is transformated from inputs to outputs then this process is known as productivity.
Outputs are the final results which each organization gets after conversion of inputs into finished products. If the value of outputs is greater than the cost of inputs used then we can say that the value is added to product hence the output helps in increasing profits of company. (outputs)
THE STRATEGIC ROLE OF OPERATIONS :-
The basic objective of operating systems is to satisfy the customers by giving them better products at low cost and by giving them better services than other companies . Consumers can be satisfied if the products are not too costly and available on time. (Understanding operations management)
Another major objective of operating systems is to utilize resources for the satisfaction of customer wants effectively. Customer service must be provided with the achievement of e