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Operations Management

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Business

Lessons no : 15

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Lessons | 15

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Operations management (OM) is the administration of business practices to create the highest level of efficiency possible within an organization. It is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization. For example, if an organization makes furniture, some of the operations management decisions involve the following: purchasing wood and fabric, hiring and training workers, location and layout of the furniture factory, purchase cutting tools and other fabrication equipment.