Operations Management: An Integrated Approach, 5th Edition

OM ACROSS THE ORGANIZATION

Now that we know the role of the operations management function and the decisions that operations managers make, let's look at the relationship between operations and other business functions. As mentioned previously, most businesses are supported by three main functions: operations, marketing, and finance. Although these functions involve different activities, they must interact to achieve the goals of the organization. They must also follow the strategic direction developed at the top level of the organization. Figure 1-10 shows the flow of information from the top to each business function, as well as the flow between functions.

Many of the decisions made by operations managers are dependent on information from the other functions. At the same time, other functions cannot be carried out properly without information from operations. Figure 1-11 shows these relationships.

Marketing is not fully capable of meeting customer needs if marketing managers do not understand what operations can produce, what due dates it can and cannot meet, and what types of customization operations can deliver. The marketing department can develop an exciting marketing campaign, but if operations cannot produce the desired product, sales will not be made. In turn, operations ...