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What is 'Operations Management'

Operations management mainly focuses on managing the processes to produce and distribute products and services. Major activities often include product creation, development, production and distribution. Other Related activities include managing purchases, inventory control, quality control, storage, logistics and evaluations of processes. A great deal of attention is on efficiency and effectiveness of processes. So, operations management often includes substantial measurement and analysis of internal processes. Eventually, the nature of how operations management is carried out in a business depends very much on the nature of the products or services in the business or organization, for example, on merchandizing, manufacturing or wholesale.

Determinants of Effective Capacity

Following are the determinants of effective capacity:Facilities: The size and provision for growth are key in the design of facilities. Other facility influences include locational factors (distance to market, transportation costs, labor supply, energy sources). The design of the work area can determine how efficiently ...read more