Operations

Operations are the means by which any business creates income from its resources.

What is Operations Management?

Operations Management looks across asset classes (people, equipment and facilities) and functional areas to maximize the realized value of the business’ assets. 

Cross-functional boundaries, resource utilization, work flows, and comprehensive cost/benefit analyses are primary concerns. 

How does Operations Management differ from Process Improvement?

Process Improvement looks at an activity or set of activities with the goal of making them more efficient, to produce the same output more reliably and with a smaller investment of resources.  It does not question the value of the output.

Before working to improve a process, Operations Management wants to determine what output is necessary and appropriate and define an effective solution. Process Improvement then comes into play as a tool of Operations Management.

The distinction is important.  The rule of thumb is that 30% of work in an office, at best, serves no purpose.  Improving those processes may help productivity, but the big benefit comes from eliminating the tasks.