Operation Management

Operations management is chiefly concerned with planning, organizing and supervising in the contexts of production, manufacturing or the provision of services. As such, it is delivery-focused, ensuring that an organization successfully turns inputs to outputs in an efficient manner. The inputs themselves could represent anything from materials, equipment and technology to human resources such as staff or workers.

From a Organizational  Cybernetics or VSM perspective Operation Management focus is on ‘here’ and ‘now’ (short term operative space) with it’s main focus:

  • For allocating resources to support the day to day work of
    the organization (system 1)
  • Prescribing routines, policies and standard operating procedures
    to minimize friction between operational units and to coordinate their activities (system 2)
  • Creating roles, processes and procedures to develop synergy and promote efficiency over and above that which is possible by an individual operating unit acting on its own
  • Monitoring and auditing information supplied by the operational units and investigating
    deviations from expected performance targets
  • Operational units within System 1 are producing and supplying the market with products and services that it supposed to deliver Operational
  • Addresses the efficient execution, coordination and control of the operational (or primary) activities performed in the group of operational units
  • Optimize the usage of various System 1 resource in order to delivery products and services ensuring ideal throughput by achieving highest level of efficiency and efficacy
  • Optimize the functioning of the ‘whole’ composed of different operational units
  • Internal stability of the various System 1 units
  • Defining operational goals
  • Guaranteeing cohesion with respect to mission and identity
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