Production and Operations Management Practice Test Questions — Flashcards

Operations management is an area of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services.  It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed and effective in meeting customer requirements.

It is concerned with managing an entire production or service system which is the process that converts inputs (in the forms of raw materials, labor, consumers, and energy) into outputs (in the form of goods and/or services for consumers).

Operations produce products, manage quality and create services. Operation management covers sectors like banking systems, hospitals, companies, working with suppliers, customers, and using technology.

Operations is one of the major functions in an organization along with supply chains, marketing, finance and human resources. The operations function requires management of both the strategic and day-to-day production of goods and services.

The main types of operations management are:  Operations and production efficiency, quality management, and inventory and supply chain management.

Operational efficiency measures the profitability of a company based on its operations.

(SOurce: Wikipedia)