There are three functions of any organisation:
- Marketing and sales;
- Development;
- Operations.
In addition, there are several support functions; some examples are:
- Human resources;
- Finance;
- Information technology;
- Engineering.
Generally, the functions vary from organisation to organisation, and the functions tend to overlap each other. This can lead to confusion over where those boundaries start and finish. There is a propensity to treat all the functions as part of operations, including the purchasing and distribution roles.
Operations Management Activities
Managers are responsible for the organisation’s activities, which contribute to producing goods and services.
These responsibilities are divided into three areas:
- Direct responsibility for the activities that lead to the production of goods and services;
- Indirect responsibility for the activities of the other functions within the organisation;
- Full responsibility to respond to possible future operations management challenges.
How the organisation defines the operations function’s boundaries impacts the exact nature of the operations function of direct responsibility. In general, several boundaries can be identified:
- Understanding the operations strategic objectives – what is the organisation trying to achieve?
- Develop an operations strategy for the organisation;
- Design the operations products, services and procedures;
- Plan and control the operation;
- Improve performance.