Efficiently Provide Better Goods & Services
Increase Organization Efficiency, 3 ways to optimize Operations System
Operations Management
Operations Management is an area of management which is concerned with the management of the operations function of the organization. Operations management is the practice of handling day-to-day operations of business functions in a manner that is efficient, and that maximizes profitability. Operations management focuses on how best to use the organization's production resources, capabilities, and competencies to efficiently, create and deliver value to customers. Operations management involves business practices and decisions to create the highest level of efficiency possible within an organization. The goal of operations management is to maximize efficiency while producing goods and services that effectively fulfill customer needs.
Operations management process is comprised of the following managerial functions: planning, organizing, staffing, directing, coordinating and controlling the various aspects of an organization's workflow in the production of goods and services, such as procurement, manufacturing of goods, provisioning of services, distribution and marketing.
Operations management is a continuous decision-making process that takes place within the context of the management functions of planning, organizing, leading, and controlling the production of goods and services. The operations management is the practice of handling day-to-day business functions in a manner that is efficient and maximizes profitability. It involves operations managers overseeing the process of acquiring, developing, and delivering goods and services to customers based on the needs of a target market, and the abilities of the organization. Operations management is concerned with maintaining a steady workflow, whether for producing your products or administration of operations function. Operations management involves managing processes, resources (such as materials, machines, technology, and funds), and people to produce products (goods and services) that the marketplace wants. The types of operations management may include: production efficiency management, quality management, inventory and supply chain management.
Operations management is the implementation of business practices to maximize the efficiency of an organization. The process includes the planning, organizing, leading/supervising, and controlling supply chain activities such as: procurement, production, product life-cycle management, logistics, planning, order management, etc., and th delivery of goods and services to customers. Teams often implement operations management by measuring and analyzing internal processes for their efficiency and effectiveness.
Operations Function
The term, (business) operations, embraces all the value chain activities and tasks that organizations use (or required) to produce - create and deliver - an organization's products (goods and services) to its customers or clients. A company's business operations are the core activities that businesses engage in, on a daily basis, to increase the value of the enterprise and earn a profit. Business operations is comprised of a number of functional areas including: strategy, marketing, finance, human resources, technology and equipment, and operations. The whole chain of events must be well managed for a business to be competitive and profitable in efficiently producing goods and services.
Operations function is the term used to describe how the core operation of the organization design and functions. Operations functions refer to the departments in an organization that keep the day-to-day activities that keep the business on track. The operations function focuses on maintaining the efficiency of the value creation processes and helps the different functions involved in the value chain make smart decisions. Companies have operations departments to keep everyday functions on track. The operations department focuses on maintaining the efficiency f the production processes and helps teams make smart decisions. Every organization has an operations function, whether or not it is called operations or not, and it is mainly responsible for producing goods and services. It however, needs support and input from other areas of the organization such as: product management, supply chain, inventory, forecasting (production/sales), scheduling, quality management, and facilities planning and management.
Operations Management Systems
Operations management system is a collection of processes and procedures that enables an organization to effectively manage business practices and achieve the highest level of efficiency with day-to-day operations. Operations management systems are geared towards improving team performance and encouraging them to focus on tasks that are instrumental to their organization's growth. There are different departments in an organization, and each of them has its responsibilities and goals. An OMS generally serves as a guide that ensures thee various departments work together to achieve a common business goals. Operations management systems a framework that an organization uses to direct and control work to achieve its objectives in an intentional and continuous manner.
The OMS includes the following components:
The OMS establishes intentional, routine operational controls that are designed to maintain compliance to performance, and strive to be better than competitors, and the organization's own previous three (3) years of performance.
Operations management takes place within the context of of the broad policies and objectives set out by strategic decision-making. It involves structured decision-making concerned with how efficiently and effectively resources are utilized, and how well operations units are performing. The direct responsibilities of operations management include managing both the operations process, embracing design, planning, control, performance improvement of all processes in an efficient way to transform resources into quality goods or services; and managing development of operations strategy. The indirect responsibilities include interacting with those managers in other functional areas within the organization whose roles have an impact on operations, such as marketing, human resources, finance, etc. Operations managers exercise control by measuring actual outputs and comparing them to planned operational output.
[TBD]
Operational decisions, unlike strategic decisions, are repetitive, routine and involve definite procedures for handling, so they do not have to be treated each time as if they are new.
Operations Management is an area of management which is concerned with the management of the operations function of the organization. Operations management is the practice of handling day-to-day operations of business functions in a manner that is efficient, and that maximizes profitability. Operations management focuses on how best to use the organization's production resources, capabilities, and competencies to efficiently, create and deliver value to customers. Operations management involves business practices and decisions to create the highest level of efficiency possible within an organization. The goal of operations management is to maximize efficiency while producing goods and services that effectively fulfill customer needs.
Operations management process is comprised of the following managerial functions: planning, organizing, staffing, directing, coordinating and controlling the various aspects of an organization's workflow in the production of goods and services, such as procurement, manufacturing of goods, provisioning of services, distribution and marketing.
- Planning - Planning in operations management is the foundational function, and it involves the development of plans and strategies that will allow a business to use its resources and seize opportunities effectively to meet desired objectives efficiently. It involves setting business objectives and monitoring to determine how best to accomplish them. Operations planning establishes the basic objectives for work in each of the major functions. It is based on the best trade-offs for the firm as a whole, weighing sales and marketing objectives, manufacturing costs, scheduling and inventory objectives, and the firm's financial objectives. All these must be integrated with the strategic view of where the company wants to go.
- Organizing - The organizing function involves developing an organizational structure and allocating human resources to ensure the accomplishment of objectives. The structure of the organization is the framework within which effort is coordinated. Some examples of organizing processes that organizations use include: creating new products, fulfilling customer orders, providing customer service, etc. This may include staffing which involves the process of recruiting - attracting and screening potential candidates, and hiring - offering selected candidates specific jobs.
- Directing - Directing or leading in operations management involves for example, setting attainable goals, directing employees to complete certain activities to accomplish an objective, thinking beyond their own self interests, showing empathy for others, building relationships with those related to the success of the business.
- Controlling - Operational Control involves control over intermediate-term operations and processes but not business strategies. Operational control systems ensure that activities are consistent with established plans. Operations management focuses on the control of the means (processes and resources) by which organizations create and deliver value. Controlling refers to the activities that assure the actual performance is in accordance with planned performance with respect to cost, quality, and efficiency. Operational control decisions involve determining which organization units will carry out the tasks, establishing criteria for completion, resource utilization, and evaluating outputs. Some examples of operational control include: automated plants, production scheduling, inventory control, order processing, payroll accounting, check handling, etc.
Operations management is a continuous decision-making process that takes place within the context of the management functions of planning, organizing, leading, and controlling the production of goods and services. The operations management is the practice of handling day-to-day business functions in a manner that is efficient and maximizes profitability. It involves operations managers overseeing the process of acquiring, developing, and delivering goods and services to customers based on the needs of a target market, and the abilities of the organization. Operations management is concerned with maintaining a steady workflow, whether for producing your products or administration of operations function. Operations management involves managing processes, resources (such as materials, machines, technology, and funds), and people to produce products (goods and services) that the marketplace wants. The types of operations management may include: production efficiency management, quality management, inventory and supply chain management.
Operations management is the implementation of business practices to maximize the efficiency of an organization. The process includes the planning, organizing, leading/supervising, and controlling supply chain activities such as: procurement, production, product life-cycle management, logistics, planning, order management, etc., and th delivery of goods and services to customers. Teams often implement operations management by measuring and analyzing internal processes for their efficiency and effectiveness.
Operations Function
The term, (business) operations, embraces all the value chain activities and tasks that organizations use (or required) to produce - create and deliver - an organization's products (goods and services) to its customers or clients. A company's business operations are the core activities that businesses engage in, on a daily basis, to increase the value of the enterprise and earn a profit. Business operations is comprised of a number of functional areas including: strategy, marketing, finance, human resources, technology and equipment, and operations. The whole chain of events must be well managed for a business to be competitive and profitable in efficiently producing goods and services.
Operations function is the term used to describe how the core operation of the organization design and functions. Operations functions refer to the departments in an organization that keep the day-to-day activities that keep the business on track. The operations function focuses on maintaining the efficiency of the value creation processes and helps the different functions involved in the value chain make smart decisions. Companies have operations departments to keep everyday functions on track. The operations department focuses on maintaining the efficiency f the production processes and helps teams make smart decisions. Every organization has an operations function, whether or not it is called operations or not, and it is mainly responsible for producing goods and services. It however, needs support and input from other areas of the organization such as: product management, supply chain, inventory, forecasting (production/sales), scheduling, quality management, and facilities planning and management.
Operations Management Systems
Operations management system is a collection of processes and procedures that enables an organization to effectively manage business practices and achieve the highest level of efficiency with day-to-day operations. Operations management systems are geared towards improving team performance and encouraging them to focus on tasks that are instrumental to their organization's growth. There are different departments in an organization, and each of them has its responsibilities and goals. An OMS generally serves as a guide that ensures thee various departments work together to achieve a common business goals. Operations management systems a framework that an organization uses to direct and control work to achieve its objectives in an intentional and continuous manner.
The OMS includes the following components:
- sets goals and policies,
- establishes how we get there by describing the organization's approach to sound operations,
- establishes the roles and responsibilities for conducting sound operations to meet the goals,
- establishes processes to be followed in pursuit of improving the system - the organization's operations goals,
- incorporates the appropriate operational controls,
- Provide periodic changes, audits, and assessments to improve and assess compliance with the OMS.
The OMS establishes intentional, routine operational controls that are designed to maintain compliance to performance, and strive to be better than competitors, and the organization's own previous three (3) years of performance.
Operations management takes place within the context of of the broad policies and objectives set out by strategic decision-making. It involves structured decision-making concerned with how efficiently and effectively resources are utilized, and how well operations units are performing. The direct responsibilities of operations management include managing both the operations process, embracing design, planning, control, performance improvement of all processes in an efficient way to transform resources into quality goods or services; and managing development of operations strategy. The indirect responsibilities include interacting with those managers in other functional areas within the organization whose roles have an impact on operations, such as marketing, human resources, finance, etc. Operations managers exercise control by measuring actual outputs and comparing them to planned operational output.
[TBD]
Operational decisions, unlike strategic decisions, are repetitive, routine and involve definite procedures for handling, so they do not have to be treated each time as if they are new.
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Strategic Decisions
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Operational Decisions
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Administrative Decisions
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Operational Control Decisions
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Strategic Decisions in Operations Management
Operations management strategic decisions are concerned with shaping the long-term capabilities of any type of operations and its contribution to the organization's overall strategy. The areas of decisions that must be included in the operations function can be defined as a bundle of practices that constitutes the entire operations strategy, and contributes to get operations competitive priorities and achieve general firm's objectives.Operations management decisions of strategic relevance can be guided by the organization's competitive priorities.
Competitive priorities are a crucial decision variable that focuses on building specific capabilities in operations/production that can improve the organization's positioning with an advantage vs its rivals in the market. Such focus may guide decisions with regards to operations structure - facility, technology, production processes, etc. and operations infrastructure - planning, control, etc. Competitive priorities in operations are the ways in which operations management focuses on the characteristics of cost, quality, flexibility, delivery performance, and innovation. A firm's customers will determine which of the competitive priorities are emphasized. We have to make trade-offs within competitive priorities. In a competitive market, no business can normally be on top in all aspects.
The purpose of the competitive priorities is to assist in the mission of positioning an organization with an advantage versus its rivals. The level of consistency between emphasized competitive priorities and how they match decisions concerning operations structure and infrastructure determines the strength of operations strategy. On a high-level the competitive priorities can represent a manufacturing strategy. To develop a manageable strategy, the priorities must be split into decision categories. As a way to prioritize among the list of competitive priorities, the idea of Order Winners and Order Qualifiers may be utilized. Order qualifiers are the qualities requires to be able to compete in the marketplace. Order winners are the qualities of a product - goods/service - which make an organization receive a new order. The main objective of analyzing a company's order-qualifiers and order-winners is to establish a basis for the manufacturing strategy. Fitting operations/manufacturing practices to the competitive priorities is important to developing operations as a competitive advantage.
Structure and Infrastructure Decisions
The structural decisions relate to the physical attributes of operations, and infrastructural decision relate to the systems and resources. Some common examples of these decisions include:
These strategic decisions in operations management are common and can be applied to organizations of any size. The level of consistency between the competitive priorities emphasized by the organization and matching decisions concerning operations structure and infrastructure contributes to the organization's operations strategy.
Operations management strategic decisions are concerned with shaping the long-term capabilities of any type of operations and its contribution to the organization's overall strategy. The areas of decisions that must be included in the operations function can be defined as a bundle of practices that constitutes the entire operations strategy, and contributes to get operations competitive priorities and achieve general firm's objectives.Operations management decisions of strategic relevance can be guided by the organization's competitive priorities.
Competitive priorities are a crucial decision variable that focuses on building specific capabilities in operations/production that can improve the organization's positioning with an advantage vs its rivals in the market. Such focus may guide decisions with regards to operations structure - facility, technology, production processes, etc. and operations infrastructure - planning, control, etc. Competitive priorities in operations are the ways in which operations management focuses on the characteristics of cost, quality, flexibility, delivery performance, and innovation. A firm's customers will determine which of the competitive priorities are emphasized. We have to make trade-offs within competitive priorities. In a competitive market, no business can normally be on top in all aspects.
The purpose of the competitive priorities is to assist in the mission of positioning an organization with an advantage versus its rivals. The level of consistency between emphasized competitive priorities and how they match decisions concerning operations structure and infrastructure determines the strength of operations strategy. On a high-level the competitive priorities can represent a manufacturing strategy. To develop a manageable strategy, the priorities must be split into decision categories. As a way to prioritize among the list of competitive priorities, the idea of Order Winners and Order Qualifiers may be utilized. Order qualifiers are the qualities requires to be able to compete in the marketplace. Order winners are the qualities of a product - goods/service - which make an organization receive a new order. The main objective of analyzing a company's order-qualifiers and order-winners is to establish a basis for the manufacturing strategy. Fitting operations/manufacturing practices to the competitive priorities is important to developing operations as a competitive advantage.
Structure and Infrastructure Decisions
The structural decisions relate to the physical attributes of operations, and infrastructural decision relate to the systems and resources. Some common examples of these decisions include:
- Location - A company's objective in this strategic decision area is the selection of a location to allow for example, optimum transportation of its products to distribution channels; optimum transportation of material an parts to manufacturing facilities, etc. , Operations management decision makers must give due consideration to the supply chain and how the facility location will receive supplies, the movement of goods and services to customers, and the role of marketing and public relations in the location choice. These decisions involve huge investments, made by the firm, in acquiring building(s), arranging and installing plant and machinery, etc.
- Layout Design and Strategy - This decision area of operations management is concerned with the company's design of its workflows and facilities. Decision makers must give due consideration to, for example, the placement of desks, workstations, and how materials are delivered and used.
- Process and Capacity Design - This decision area in operations management is concerned with design strategies which support production goals including technology nd resources. Decision makers must give due consideration to strategies to flexibly increase capacity if the organization has to scale production to match increase in demand. Process technology decisions on how to structure the conversion processes and methods used in execution. A company's main objective in this area is on how to maintain optimum production process.
- Design of Goods and services - This decision area of operations management is applied based on market research, trends and forecasting. The company's objective in this strategic decision as it relates to Operations Management is to support the strategic positioning of the company's products - goods and services. This includes looking for ways to implement consistency in costs, quality, and resources across business divisions or brands.
- Quality Management - Quality management is the systematic control process of keeping an intended level of quality in the goods and services, in which the organization deals. It attempts to prevent defects and make corrective actions (if they find any defects during the quality control process), to ensure that the desired quality is maintained, at reasonable prices. The objective in this area is to maintain Operations Management practices towards the course of maximizing quality of output and matching the company's brand image with the expectation of consumers. This decision area in Operations management at organizations is applied through quality assurance and control programs. This is the process controlling, measuring and improving the quality of an organization's processes, goods and services.
- Human Resources and Job Design -This decision area of operations management is concerned with recruiting good talent and continuous improvement programs and training and institute employee satisfaction programs to achieve success.
- Supply Chain Management - This decision area in operations management is concerned with determining the best strategies to streamline be cost effective and to develop trusted partners.
- Inventory Management - This decision area of operations management is concerned with planning and strategies for effective inventory control subject to influences of weather, supply shortages, and labor on how an organization maintains its inventory.
- Scheduling - This decision area in operations management is concerned with scheduling resources for production and other company activities to ensure efficient and effective achievement of operations goals.
- Maintenance - This strategic operations area guides operations management decisions concerned with maintaining people, machines, processes needed to create and deliver value to customers. These decisions relate to what the organization needs to do to maintain quality and keep resources reliable and stable. Machinery, tools and equipment play a crucial role in the process of production. So, if they are not available at the time of need, due to any reason like downtime or breakage etc. then the entire process will suffer.Hence, it is the responsibility of the operations manager to keep the plant in good condition, as well as keeping the machines and other equipment in the right state, so that the firm can use them in their optimal capacity.
These strategic decisions in operations management are common and can be applied to organizations of any size. The level of consistency between the competitive priorities emphasized by the organization and matching decisions concerning operations structure and infrastructure contributes to the organization's operations strategy.
Operations Management Operational Decisions
Operational management decisions are determinations made in regard to the routine, ongoing activities in the functional areas of an organization. These involve the daily business decisions that are done in high-volume by every business. It’s in the nature of operational decisions to be easily repeatable, because one of its primary characteristic is being consistent at following defined rules or guidelines. Another characteristic is that these decisions should often be made as quickly as possible and sometimes they are made while clients are waiting. While these decisions are often made about customers, they can also involve suppliers, employees and products.
Operational decisions are made within the context of longer-term strategic decisions, so that an organization’s strategy is always supported by its operating decisions. Operational decisions are taken in accordance with strategic and administrative decisions; and are related to the efficient production of goods and services. For example, to reduce cost is a strategic goal which is achieved through operational decision of reducing the number of employees; and how we carry out these reductions will be administrative decision. While these decisions are often made about customers, they can also involve suppliers, employees and products.
Some examples of these decisions include:
In operational decision making, the decision makers have to consider factors such as volume, latency, variability, managing risk, self service and personalized. It’s in the nature of operational decisions to be easily repeatable, because one of its primary characteristic, is being consistent at following defined rules or guidelines. Another characteristic is that these decisions is, they should often be made as quickly as possible and sometimes they are made while clients are waiting. Good operational decisions help eliminate wasteful activities and costly reports. They reduce fraud and prevent fines. They help people in your organization be more productive, and spend their time where it really matters.
Operational management decisions are determinations made in regard to the routine, ongoing activities in the functional areas of an organization. These involve the daily business decisions that are done in high-volume by every business. It’s in the nature of operational decisions to be easily repeatable, because one of its primary characteristic is being consistent at following defined rules or guidelines. Another characteristic is that these decisions should often be made as quickly as possible and sometimes they are made while clients are waiting. While these decisions are often made about customers, they can also involve suppliers, employees and products.
Operational decisions are made within the context of longer-term strategic decisions, so that an organization’s strategy is always supported by its operating decisions. Operational decisions are taken in accordance with strategic and administrative decisions; and are related to the efficient production of goods and services. For example, to reduce cost is a strategic goal which is achieved through operational decision of reducing the number of employees; and how we carry out these reductions will be administrative decision. While these decisions are often made about customers, they can also involve suppliers, employees and products.
Some examples of these decisions include:
- Which customer orders/jobs to schedule for production - [Production]
- Which components and raw materials to buy from suppliers, - [Purchasing]
- Which production equipment to schedule for use, [Production Scheduling]
- The nature of a marketing campaign - [Marketing]
- Where to invest excess funds - [Finance]
- Determining how much inventory to keep on hand. [Operations]
In operational decision making, the decision makers have to consider factors such as volume, latency, variability, managing risk, self service and personalized. It’s in the nature of operational decisions to be easily repeatable, because one of its primary characteristic, is being consistent at following defined rules or guidelines. Another characteristic is that these decisions is, they should often be made as quickly as possible and sometimes they are made while clients are waiting. Good operational decisions help eliminate wasteful activities and costly reports. They reduce fraud and prevent fines. They help people in your organization be more productive, and spend their time where it really matters.
Operations Management Administrative Decisions
Administrative decisions are taken in accordance with strategic and operational decisions; and are related to workings of employees in the organization. Administrative decisions and thinking fleshes out top-level strategic plans and breaks them up actionable chunks for operational decision makers. Administrative decision making is contextual both in terms of the type of decisions a position holder must make as well as how they should be made (style). The type of administrative decision is a function of administrative level, and the style is a function of organizational culture. Administrative decisions are routine decisions which help or facilitate strategic decisions or operational decisions.Administrative decisions may be as mundane as refilling the water cooler, to as stressful as fulfilling a customers order within minutes.
Administrative decisions are taken in accordance with strategic and operational decisions; and are related to workings of employees in the organization. Administrative decisions and thinking fleshes out top-level strategic plans and breaks them up actionable chunks for operational decision makers. Administrative decision making is contextual both in terms of the type of decisions a position holder must make as well as how they should be made (style). The type of administrative decision is a function of administrative level, and the style is a function of organizational culture. Administrative decisions are routine decisions which help or facilitate strategic decisions or operational decisions.Administrative decisions may be as mundane as refilling the water cooler, to as stressful as fulfilling a customers order within minutes.
Operational Controls and Decisions
Operational control is concerned with monitoring and evaluating day-to-day functions to correct any problems as quickly as possible. Where operational controls are imposed, they function within the framework established by the strategy Operational controls may involve people, processes and technology. When successful, they flag potential risks, identify misalignment between plans and actions, and effectively implement changes to stay on course with your strategy. For example, if there are technical malfunction of technology, or performance is below expectations, operational control processes can initiate a course correction quickly. This could include updating IT systems, or retraining particular employees, respectively.
Operational control systems ensure that activities are consistent with established plans. Mid-level managers use operational controls for intermediate-term decisions. When performance does not meet standards, managers enforce corrective actions which include training, discipline, motivation, or termination. Operational control focuses more on internal sources of information and affects aspects of the organization such as production levels, or choice of equipment. Errors in operational control might mean failing to complete projects on time. Operational control is the process of checking if specific tasks or transactions are delivered in efficient and effective way. All activities might be measured in terms of input (resources), and output (consumes; goods, services, or other effects). The goal of operational control is to find optimal solution.
Some examples of operational control processes include:
Other approaches related to operational control include process improvement, performance management and risk management..
Operational control is concerned with activities that can be programmed. Examples include, automated plants, production scheduling, inventory control (inventory levels and procurement scheduling like JIT), order processing, payroll accounting, check handling, etc. Controlling costs, quality and schedules are the important functions here. For example, it is concerned with scheduling and controlling individual jobs through a shop rather than with measuring the performance of the shop as a whole.
Operational control is concerned with monitoring and evaluating day-to-day functions to correct any problems as quickly as possible. Where operational controls are imposed, they function within the framework established by the strategy Operational controls may involve people, processes and technology. When successful, they flag potential risks, identify misalignment between plans and actions, and effectively implement changes to stay on course with your strategy. For example, if there are technical malfunction of technology, or performance is below expectations, operational control processes can initiate a course correction quickly. This could include updating IT systems, or retraining particular employees, respectively.
Operational control systems ensure that activities are consistent with established plans. Mid-level managers use operational controls for intermediate-term decisions. When performance does not meet standards, managers enforce corrective actions which include training, discipline, motivation, or termination. Operational control focuses more on internal sources of information and affects aspects of the organization such as production levels, or choice of equipment. Errors in operational control might mean failing to complete projects on time. Operational control is the process of checking if specific tasks or transactions are delivered in efficient and effective way. All activities might be measured in terms of input (resources), and output (consumes; goods, services, or other effects). The goal of operational control is to find optimal solution.
Some examples of operational control processes include:
- Quality Control - This is a process of measuring and comparing a products performance against predetermined standards. It is used to identify defects and errors in order to improve the quality of the product and ensure customer satisfaction. Quality control includes activities such as: inspection, testing, auditing, and tracking customer feedback. Quality control is a systematic approach to ensure that a product or service meets the required quality standards. Quality control can involve monitoring inputs and outputs, as well as the process itself, to detect and correct any inconsistencies.
- Inventory Control - Inventory control is the process of managing and monitoring the levels inventory items or goods in an organization. It involves tracking inventory levels, determining when to order new stock, and ensuring that goods are stored safely and securely.
- Production Control - Production control is a type of operational control that involves managing the manufacturing process in order to ensure that goods are produced efficiently and cost effectively. It involves planning, scheduling, and controlling the production process in order to meet customer demands.
- Cost Control - Cost control is a type of operational control that involves monitoring and controlling the costs associated with producing goods and services. It involves tracking costs, analyzing them, and identifying opportunities for cost reduction.
- Security Control - Operational controls are security controls that are primarily implemented and executed by people (as opposed to systems). These controls are put in place to improve the performance of a particular system (or group of systems).
Other approaches related to operational control include process improvement, performance management and risk management..
- Risk Management - Risk management is a systematic approach to identify, assess, and manage potential risks. It involves assessing the probability and impact of potential risks, and determining the best strategies to manage them.
- Performance Management - Performance management is the process of monitoring, evaluating, and improving the performance of individuals, teams, and organizations. It includes setting goals, measuring performance, and providing feedback to help improve performance.
Operational control is concerned with activities that can be programmed. Examples include, automated plants, production scheduling, inventory control (inventory levels and procurement scheduling like JIT), order processing, payroll accounting, check handling, etc. Controlling costs, quality and schedules are the important functions here. For example, it is concerned with scheduling and controlling individual jobs through a shop rather than with measuring the performance of the shop as a whole.
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