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The Operations Function

Although somewhat ‘invisible’ to the marketplace the operations function in a typical company accounts for well over half the employment and well over half the physical assets. That, in itself, makes the operations function important. In a company’s organization chart, operations often enjoys parity with the other major business functions: marketing, sales, product engineering, finance control (accounting), and human resources (personnel, labor relations). Sometimes, the operations function is organized as a single entity which stretches out across the entire company, but more often it is embedded in the district, typically product-defined divisions into which most major companies are organized.

In many service businesses, the operations function is typically more visible. Service businesses are often organized into many branches, often with geographic responsibilities – field offices, retail outlets. In such tiers of the organization, operations are paramount.

The operations function itself is, often divided 

.................two major groupings .................tasks:

line management and support services. Line management generally refers.................those managers directly concerned................the manufacture of the product or the delivery of the service. They are the ones who are typically close enough to the product or service that they can ‘touch’ it. Line management supervises the hourly, blue-collar workforce. In a manufacturing company, line management frequently extends to the stockroom (where material, parts, and semi-finished products – termed ‘work-in-process inventory – are stored), materials handling, the tool room, maintenance, the warehouse (where finished goods are stored), and distribution, as well as the so-called ‘factory floor’. In a service operation, what is considered line management can broaden considerably. Often, order-taking roles, in addition to orderfilling roles, are supervised by service line managers.

Support services for line management’s operations can be numerous. Within a manufacturing environment, support services carry titles such as quality control, production planning and scheduling, purchasing, inventory control, production control (which determines the status of jobs in the factory and what to do about jobs that may have fallen behind schedule), industrial engineering (which is work methods oriented), manufacturing engineering (which is hardware-oriented), on-going product engineering, and field service. In a service environment, some of the same roles are played but sometimes under vastly different names.

Thus, the managers for whom operational issues are central can hold a variety of titles. In manufacturing, the titles can range from vice-president – manufacturing, works manager, plant manager, and similar titles at the top of the hierarchy, through such titles as manufacturing or production manager, general superintendent, department manager, materials manager, director of quality control, and down to general foreman or foreman. Within service businesses, ‘operations manager’ is sometimes used but frequently the title is more general – business manager, branch manager, retail manager, and so on.

SCHMENNER, Roger W. Production/Operations Management. 5th Edition. Prentice-Hall, 1993.