Operations Management

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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.

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BREAKING DOWN '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.

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RELATED FAQS
  1. What does the book-to-bill ratio in the electronics sector refer to?

    The collection and analysis of data can significantly complement and enhance operations management, leading to increased ... Read Full Answer >>
  2. What is the average annual dividend yield of companies in the chemicals sector?

    Some of the most prominent examples of operations management in health care include controlling costs, enhancing the level ... Read Full Answer >>
  3. What is operations management theory and how can it help a business?

    Operations management is concerned with controlling the production process and business operations in the most efficient ... Read Full Answer >>
  4. What's the average salary of a business operations manager?

    The average salary of a business operations manager is $116,090 per year or the equivalent of $55.81 per hour. According ... Read Full Answer >>
  5. How do modern companies assess business risk?

    Before a business can assess or mitigate business risk, it must first identify probable or likely risks to its bottom line. ... Read Full Answer >>
  6. Why has emphasis on corporate governance grown in the 21st century?

    Corporate governance refers to operational practices, management protocols, and other governing rules or principles by which ... Read Full Answer >>

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