How does knowledge of operations management assist a company in the decision making process?
Operations management knowledge is always crucial to the decision-making process. A company that is making a product needs to know whether to make more or less of the product, whether the product can be made with less expensive materials or less labor costs, whether machinery is doing its proper job, whether a new technology is worth investing in, whether there is too much inventory that needs greater marketing efforts or a price reduction, and countless other variables that will make for improved decision-making. If the company is offering a service, understanding of operations is still necessary to make good decisions. Are service operations efficient? Are there procedures in place that make it easy for employees to make the correct choices? Are employees being trained properly to execute the operations? Are services being offered at the optimum times and places? How might the operations generate fewer complaints? If management is making decisions without any understanding of operations, good decisions cannot be made in marketing, in finance, in human resources, or in operations.