Role of Operations Management
Role of Operations Management
This paper describes operations management and how it is applied in the banking field. Operations management is fundamental for any business seeking a competitive advantage in productivity. The role of operations management is to efficiently and effectively produce quality goods and services to create wealth.
Bank operations management is the foundation of banking. Processing daily transactions, controlling and managing trades and sales and supporting front and back officers is part of the many functions of operations management. According to Chase, Jacobs, and Aquilano, 2006, operations management is defined as the design, operation, and improvement of the systems that create and deliver the firm’s primary products and services (p. 9). Bank operations are behind the scenes and commonly referred to back office operations because it does not handle front office sales. However a bank cannot move forward without operations management. Thus operations strategy is vital to banking to function at its optimal level. By definition “operations strategy is concerned with setting broad policies and plans for using the resources of a firm to best support its long-term competitive strategy” (Chase, Jacobs, & Aquilano, 2006, p. 24).
Typically a strategy breaks down into three major components: operations effectiveness, customer management, and product innovation. It is important that a firm’s strategy aligns with its mission of serving the customer. JPMorgan Chase, the bank with which I am familiar, strategizes into three major components: operations effectiveness, customer management, and product innovation. A strategy must always align with a firm’s mission statement to make sure goals are attained by focusing on customer service.
In the banking business some of the many competitive dimensions are the following: cost or price of service or product, quality, and speed. JPMorgan Chase bank is a recognized national bank that integrates
This paper describes operations management and how it is applied in the banking field. Operations management is fundamental for any business seeking a competitive advantage in productivity. The role of operations management is to efficiently and effectively produce quality goods and services to create wealth.
Bank operations management is the foundation of banking. Processing daily transactions, controlling and managing trades and sales and supporting front and back officers is part of the many functions of operations management. According to Chase, Jacobs, and Aquilano, 2006, operations management is defined as the design, operation, and improvement of the systems that create and deliver the firm’s primary products and services (p. 9). Bank operations are behind the scenes and commonly referred to back office operations because it does not handle front office sales. However a bank cannot move forward without operations management. Thus operations strategy is vital to banking to function at its optimal level. By definition “operations strategy is concerned with setting broad policies and plans for using the resources of a firm to best support its long-term competitive strategy” (Chase, Jacobs, & Aquilano, 2006, p. 24).
Typically a strategy breaks down into three major components: operations effectiveness, customer management, and product innovation. It is important that a firm’s strategy aligns with its mission of serving the customer. JPMorgan Chase, the bank with which I am familiar, strategizes into three major components: operations effectiveness, customer management, and product innovation. A strategy must always align with a firm’s mission statement to make sure goals are attained by focusing on customer service.
In the banking business some of the many competitive dimensions are the following: cost or price of service or product, quality, and speed. JPMorgan Chase bank is a recognized national bank that integrates