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The operations management of any organization involves the design,operation, and improvement of the systems that create and deliver the primaryproducts and services of the organization. From an organizational point ofview, operations management may be defined as the management of the directresources that are required to produce and deliver organizational goods andservices. Operations management is an area of business that is concerned withthe production of goods and services, and involves the responsibility ofensuring that business operations are efficient and effective. It is also themanagement of resources and the distribution of goods and services tocustomers. However, people tend to misunderstand operations management with thesubject of operations research. 

            During1940s, scientists of established reputation accepted the challenge ofattempting to understand a host of common processes in military operations.Their team effort was called operations research and the focus of theirattention was the science of military systems. Hence the world war 11 with itscomplex problems of logistic control and weapon systems design, provided theimpetus for the development of interdisciplinary, mathematically oriented fieldof operations research.(OR).

           Operations Research, or simply OR is an interdisciplinary science which deploysscientific methods like mathematical modeling, statistics, and algorithms todecision making in complex real-world problems which are concerned withcoordination and execution of the operations within an organization. The natureof organization is essentially immaterial. The eventual intention behind usingthis science is to elicit a best possible solution to a problem scientifically,which improves or optimizes the performance of the organization. Hence,Operations Research brings together practitioner in diverse fields such asmathematics, psychology, and economics etc. Specialists in these fieldscustomarily formed a team to structure and analyze a problem in quantitativeterms so that a mathematically optimum solution can be obtained. OR todayprovides many of the sophisticated quantitative tools in operations management(OM).

           Operations research also closely relates to industrial engineering which takesmore of an engineering point of view, and industrial engineers typicallyconsider OR techniques to be a major part of their toolset.

            Some ofthe primary tools used by operations researchers are statistics, optimization,and simulation. Because of the computational nature of these fields OR also hasties to computer science, and operations researchers regularly usecustom-written or off-the-shelf software. Operations research is distinguishedby its ability to look at and improve an entire system, rather thanconcentrating only on specific elements (though this is often done as well). Anoperations researcher faced with a new problem is expected to determine whichtechniques are most appropriate given the nature of the system, the goals forimprovement, and constraints on time and computing power. For this and otherreasons, the human element of OR is vital. Like any other tools, OR techniquescannot solve problems by themselves.

A few examples of applications in which operations research is currentlyused include designing layout of a factory for efficient flow of materials,constructing a telecommunications network at low cost while still guaranteeingquality service if particular connections become very busy or get damaged, roadtraffic management and ‘one way’ street allocations, determining the routes ofschool buses so that as few buses are needed as possible, designing the layoutof a computer chip to reduce manufacturing time (therefore reducing cost),managing the flow of raw materials and products in a supply chain based onuncertain demand for the finished products, efficient messaging and customerresponse tactics, roboticizing or automating human-driven operations processes,globalizing operations processes in order to take advantage of cheapermaterials, labor, or other productivity inputs, managing freight transportationand delivery systems, network data traffic: these are known as queuing modelsor queuing systems, sports events and their television coverage, blending ofraw materials in oil refineries, etc, etc.

There was a lack of emphasis on operations management in the post war iiyears, for many reasons.

(1) Following World War II, the United States was the obvious world leaderin manufacturing. US dominance was the result of several factors including thevirtually total destruction of most of the production capabilities of the otherleading industrialized nations of the world.

(2) Under foregoing conditions, the lack of foreign competition till forsome years resulted in lack of emphasis on operations management since most ofthe countries were not so serious about global market infiltration, with thecollapse of technological power had before the war.

(3) With the demand significantly exceeding capacity during the post warperiod, emphasis was placed on output, and the operations function typicallyrelated to situations only when they occurred. Corporate managers during thisperiod usually told operations managers to focus only on controlling productioncosts, rather than focusing on other aspects related to operationsmanagement.

It is also important to notice the resurgence of interest in OM today,mainly on the reasons as follows;

The ever increasing standard of living in society is a one of major factorsthat inspires resurgence of interest in operations management today. Operationsmanagement enables to increase productivity and better quality goods andservice delivery. High productivity is the result of increased efficiency inoperations, which in turn translates into lower cost goods and services. Thushigher productivity provides consumers with more discretionary income, whichcintr9butes to their higher standard of living. The increased use of automationand robotics also improves the quality of goods.

Most companies today are taking up the challenge to producer environmentallyfriendly products with environmentally friendly processes all of which fallsunder the purview of operations management.

Operations management is continuously changing to meet the new and excitingchallenges of today’s business world. This ever changing world is characterizedby increasing global competition and advances in technology. To survive andprosper in such a global market, companies must excel in more than onecompetitive dimension. The rise of the global economy and the trend towardsglobalization has placed emphasis on the issues associated with logistics,quality, productivity and customer satisfaction which operations managementmade them integral in production sector.

Advances in technology in recent years also have had a significant impact onthe operations management function. Information technology (IT) now allows usto collect detail customer data so that we customize products to meet the needsof individual customers..

Operations management provides a systematic way of looking at organizationalprocesses. OM uses analytical thinking to deal with real world problems. Itsharpens our understanding of the world around us, whether we are talking abouthow to compete with competitors or how many lines to add the bank teller’swindow.

OM presents interesting career opportunities which can be in directsupervision of operations or in staff positions OM specialties such as qualityassurance.

However, the reality is not always the same. Technology has raised theperformance bar in both manufacturing and services sector by allowing firms tocompete on several dimensions (low cost, quality, speed of delivery,customization etc) simultaneously. For example, firms using technology such asDell Computer can produce and quickly deliver individually customized productsat a very competitive price.

Automation is a result of technology advance that relate to the automaticoperation of a production process. Some major developments in manufacturingautomation include machining centers, numerically controlled machines,industrial robotics, computer aided design and manufacturing systems, flexiblemanufacturing systems, computer integrated manufacturing and islands ofautomation.

Advances in technology, including improved automated equipment, voicerecognition systems, high speed data transmission lines like broadband, andfaster and more powerful computers also have had a significant impact onservices. Contributing to the growing trends in services is the fact that largeamounts of data are readily accessible and can be transmitted inexpensivelyover long distances. Increase in self service, decrease on the importance ofthe location and the shift from time dependant to non-time dependanttransactions and the increase in disintermediation are the results oftechnological advances in the services sector. Technology also has created theconcepts of global and green village for the betterment of the humankind as areply to its negative impacts such as mechanized human elements in a factorylayout for instance.

Under circumstances, the author envisages the future role of the OM functionas follows;

             Inthe new world of e-business, competition takes on a new intensity and a varietyof flavors. The unique dynamics of the international online marketplace oftenrequires organizations to pursue multiple, simultaneous, and seeminglycontradictory strategies. To identify what is both possible and advantageous,organizations must learn to think smarter and act faster – more so than thetoughest competitors they can possibly imagine. This means moving beyond marketleadership to another level – one that enables an enterprise to “leapfrog” thecompetition.

           International e-business success starts with world-class supply chainmanagement and an enabling infrastructure that is a critical component oftoday’s global enterprise not to be overlooked. E-business is obviously thefuture, and the Business-to-Business (B2B) component is taking the lead indefining what success will look like in this future. Additionally, in thisemerging world of business, adaptation to constant change will prove animportant ingredient for success. The future role of operations managementshould taker the above factors into serious consideration if any firm seeks tosecure and sustain in competitive edge.

            Futureopportunities are hard to estimate, and many change programs are thereforebuilt on limited information. Case decisions are often made on the basis ofprevious internal successes and failures rather than a fact-based marketreview.

Companies often set targets for change without having the full picture ofthe current environment, which means that either the outcome of the change isnot considered optimal or the costs of the change are deemed too high togenerate a net benefit.

Too many Business Process Re-engineering projects have been launched withgreat expectations and end with disappointing results.

            Strategyshould be based on a concrete understanding of market capabilities, practicesand processes, to allow specific operational targets to be clearly articulatedand demonstrated. A framework needs to be put in place to accurately describecurrent and future operational performance, in order to increase confidence andcredibility in the change and improvement process.

           Operations management as a field deals with the production of goods andservices that we come in everyday contact in domestic life. Without effectivemanagement of operations, a modern industrialized society can not exist.Operations are the engine that creates wealth for the enterprise and underpinsthe global economy.

           Operations managers however have important responsibilities in the servicesector as well (80% is in the service sector in USA) such as in hotels, banksairlines retail stores etc. In each of these organizations, operations mangersare responsible for providing the supply of services much like theircounterparts in manufacturing product the supply of goods.

Managing the transformation process in an efficient and effective manner isthe tasks of the operations manager in any type of organization. Wealth iscreated in the global economy through excellent operations management. Wealthcreation occurs when the value of outputs in goods and services exceeds thecost of the inputs used. It is reflected in the standard of living of thepeople and is a function of constantly increasing productivity.

Raising productivity of operations, the ratio of output to input, istherefore the primary basis for creating wealth. A company can not prosper inling run unless they have higher productivity than their domestic and foreigncompetitors. The tasks of the future operations manager can not be withdrawnfrom wealth creation. The future operations manager must be more sensitive andchallengeable than today in creating wealth by improving productivity.

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