Operations Function Essay

This therefore implies that Operation Management decisions are not made in isolation. Rather, each decision is intertwined with other organizational functions following the strategic direction developed at the top level of the organization. In a nutshell, 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 as detailed below: 1. Finance: The finance function ties all departments together with monetary measurements that tell whether the company is making money. They also regulate the acquisition of funds to keep the business operations going, and investing money received wisely. Finance managers need to work closely with the operations function to be able to determine the need for capital investments, make-or-buy decisions, plant expansions, or relocation of business operations. On the other hand, operations managers cannot make large financial expenditures without understanding financial constraints and methods of evaluating financial investments. It is essential for these two functions to work together and understand each other’s constraints. . Sales and marketing: The sales and marketing function focuses on maintaining and attracting customers to the company’s products and services. To be able to satisfy customer needs, the marketing function needs to understand what operations can produce, what due dates it can and cannot meet, and what types of customization operations can deliver. The marketing function can develop an ex citing marketing campaign, but if operations cannot produce the desired product, sales will not be made. In turn, operations managers need information about customer wants and expectations. It is the responsibility of the operations function to design products with characteristics that customers find desirable, and they cannot do this without regular coordination with the marketing department. 3. Information and Communications Technology (ICT): ICT is the function that enables information to flow throughout the organization and enables the operations function to operate effectively. The ICT function must understand the needs of operations and endeavour to meet those needs as regards timely provision of required information.