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