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Refer to below figure: Since many centuries, operations management has been recognized as a significant factor in any country's economic development.
Other theorists defined it as the management of the processes that produce or deliver goods and/or services"(Greasley, 2009:3).
Operation managers are involved in planning, organizing, and controlling the activities which affect human behaviour through models. Activities that establishes a course of action and guide future decision-making is planning.
The operations manager defines the objectives for the operations subsystem of the organization, and the policies, and procedures for achieving the objectives.
This stage includes clarifying the role and focus of operations in the organization's overall strategy.
Operation managers establish a structure of roles and the flow of information within the operations subsystem.
They determine the activities required to achieve the goals and assign authority and responsibility for carrying them out.Below table elaborate the aspects of customer service: Other key goal is best utilization of resources to satisfy customers.Operations management is concerned basically with the utilisation of resources, i.e.It also involves product planning, facility designing and using the conversion process.Activities that establishes a structure of tasks and authority.Activities that assure the actual performance in accordance with planned performance.To ensure that the plans for the operations subsystems are accomplished, the operations manager must exercise control by measuring actual outputs and comparing them to planned operations management.They also want to know how the behaviour of subordinates can affect management's planning, organizing, and controlling actions. As operation managers plan, organise, and control the conversion process, they encounter many problems and must make many decisions.They can simplify their difficulties using models like aggregate planning models for examining how best to use existing capacity in short-term, break even analysis to identify break even volumes, linear programming and computer simulation for capacity utilisation, decision tree analysis for long-term capacity problem of facility expansion, simple median model for determining best locations of facilities etc.Each measure indicates the extent to which the potential or capacity of such resources is utilised.This is referred as the objective of resource utilisation.