Operations management focuses on carefully managing the processes to produce and distribute products and services. Usually, small businesses don't talk about "operations management", but they carry out the activities that management schools typically associate with the phrase "operations management." Major, overall activities often include product creation, development, production and distribution. (These activities are also associated with Product and Service Management. However product management is usually in regard to one or more closely related product - that is, a product line. Operations management is in regard to all operations within the organization.) Related activities include managing purchases, inventory control, quality control, storage, logistics and evaluations.

A great deal of focus is on efficiency and effectiveness of processes. Therefore, operations management often includes substantial measurement and analysis of internal processes. Ultimately, the nature of how operations management is carried out in an organization depends very much on the nature of products or services in the organization, for example, retail, manufacturing, wholesale, etc.

Procurement (Purchasing) Practices

This topic reviews guidelines for buying various materials from suppliers and vendors -- materials, including computers, services from lawyers, insurance, etc.

Management Control and Coordinating Function

Management control and coordination includes a broad range of activities to ensure that organizational goals are consistently being met in an effective and efficient fashion.

Product and Service Management

As noted above, the major activities involved in product and service management are similar to those in operations management. However, operations management is focused on the operations of the entire organization, rather than managing a product or service.

Quality Management

Quality management is crucial to effective operations management, particularly continuous improvement. More recent advancements in quality, such as benchmarking and Total Quality Management, have resulted in advancements to operations management as well.

Inventory Management

Costs can be substantial to store and move inventory. Innovative methods, such as Just-in-Time inventory control, can save costs and move products and services to customers more quickly.

Software Packages

You can often get a software package that will help you manage your inventory. Usually, these packages are primarily for accounting.

Logistics and Transportation Management

Logistics is focused on the flow of materials and goods from suppliers, through the organization and to the customers, with priority on efficiency and cost effectiveness.

Facilities Management

Effective operations management depnds a great deal on effective management of facilities, such as buildings, computer systems, signage, lighting, etc.

Configuration Management

It's important to track the various versions of products and services. Consider the various versions of software that continually are produced, each with its own version number. Tracking these versions is configuration management.

Distribution Channels

The means of distribution depend very much on the nature of the product or service.

(NOTE: The major functions of operations management are all referenced from above.)

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