Boundless (2015) states that, as one of the three strategic functions of any organisation (operations, marketing and finance), operations is vital to accomplishing an organisation’s strategy as well as ensuring its long term survival. The operations strategy should support any overall strategy of the said organisation.
Slack et al (2004) state, however, that the three core functions common to all organisations are marketing (including sales), product/service development, and operations. Support functions include the accounting, finance, and human resources functions.
Like many things, functional names, boundaries and responsibilities will vary, sometimes significantly, between different organisations. As well as this, it should be noted that there is not a clear division between the ‘core’ functions or between core and support functions.
The various functions may be called by different names dependant on the organisation and may have different support functions.
The level of complexity within the operations functions will vary dependant on several factors:
- The size of the organisation as well as the services and product volumes associated with the business.
- The nature of the services and products provided.
- Technological levels that are embodied in both the services and products that are used within the operations function.
- The extent to which the services and products are made in house.