Operations Management

AAA

DEFINITION of 'Operations Management'

Operations management refers to the administration of business practices to create the highest level of efficiency possible within an organization. Operations management is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization.

INVESTOPEDIA EXPLAINS 'Operations Management'

Operations management teams design the method of conversion of inputs (materials, labor, proprietary information, etc.) into outputs (goods, services, value-added products, etc.) that is most beneficial to the organization. Operations management teams attempt to balance costs with revenue to achieve the highest net operating profit possible.

RELATED TERMS
  1. Aged Assets

    Equipment that has outlived its useful life. Aged assets might ...
  2. Strategic Gap Analysis

    The evaluation of the difference between a desired outcome and ...
  3. Operating Revenue

    Income derived from sources related to a company's everyday business ...
  4. Operating Expense

    A category of expenditure that a business incurs as a result ...
  5. Profit

    A financial benefit that is realized when the amount of revenue ...
  6. Business

    1. An organization or enterprising entity engaged in commercial, ...
Related Articles
  1. Markets

    A Look At Corporate Profit Margins

  2. Retirement

    The Essentials Of Corporate Cash Flow ...

  3. Markets

    What Is A Cash Flow Statement?

  4. Investing Basics

    Using Appreciative Inquiry To Solve ...

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center