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TQM, JIT, BPR, SCM, SAP, and ERP are all terms that most of you would have come across in several business related articles in newspapers and magazines. You would have also figured out that these are Ops (Operations Management) jargon. But what do they really mean, and what is Operations Management in the first place?


Every business, big or small, manufacturing or service oriented, involves a certain element of production and delivery of goods or services. This can, in a certain sense, be looked at as the core activity of the organisation, which is supported by various activities such as finance, marketing, systems, and human resources management. Operations Management, in its essence, is all about studying, understanding, and influencing the way organizations manufacture and distribute goods and services.Everything you wear, eat, sit on, use or read comes to you courtesy of the operations managers who organized its production and distribution.


The relevance of Operations Management was first realised in its true business sense with the advent of the Industrial Revolution during the mid-18th century. By the first quarter of the 20th century, along with the development of Scientific Management, Operations Management began to be given its due recognition as an area contributing to the bottom line as well as ensuring maximum customer satisfaction. It was also observed that the entire economy would benefit from the increased productivity and efficiency of business processes. By the early 1970s, with the onset of the Quality Revolution, the significance of Operations Management reached new heights.
Over the past couple of centuries, businesses have gone from competing on cost to competing on quality to competing on flexibility. The latest parameter on which companies are now competing is speed (or delivery time). Operations Management is the one area that can deliver this sort of an edge to companies as they compete. Shorter product and service life cycles, better educated and quality-conscious consumers, and the capabilities of new technology have placed pressures on the operations function to improve productivity while providing a broader array of high-quality products and services. A direct consequence of this is that some of the highest paid business consultants in today’s globalized economy are, in fact, from this very field of management. This should not come as a surprise to you, since often times, for companies with large operations, even a small but incisive suggestion to improve the flow of the operations can help save costs, improve customer satisfaction, and add millions of rupees to the bottom line.
Next Article on Basics of Operations Management and Career Options.
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