Management Notes

Reference Notes for Management

Objectives of Operations Management – Scope of Operations Management | Management Notes

Objectives of Operations Management

The objectives should be clearly identified, structured as well as explicitly stated in order to achieve goals. The main objective of operation management is to provide conversion capabilities for meeting the organization’s goal and strategy.

Operation Management has certain objectives to remain in competitive which can be grouped together in the following ways:

  1. Performance Objectives
  2. Cost Objectives

1) Performance Objectives: Definition of performance objectives

  • To increase efficiency and effectiveness. The production department should make the optimal utilization of the input resources to achieve the organizational goal.
  • To provide qualitative goods and services. The output which may be in the form of a product or service should satisfy the customers and then only it is liked and accepted by them.
  • To increase flexibility to some extent: The capacity for satisfying various needs of customers by producing a combination of outputs is flexibility.
  • To utilize the capacity: The percentage of manpower, machinery, etc. needs to be fully utilized in order to achieve the goal efficiently and effectively.

 2) Cost Objectives

To minimize the cost related to labor, material, facilities, etc. Cost minimization is an important system objective. The production cost of goods or services should be minimized and the cost of rendering service should be also kept at a low level in order to achieve a higher degree of customer satisfaction.

Operations Management Quiz

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