Operations Management Theory Essay

826 Words Sep 22nd, 2005 4 Pages
Operations Management in Health Care

Operations management is the organizing and controlling of the fundamental business activity of providing goods and services to customers (Encarta, 2005). In the healthcare industry, operations management generally focuses on providing a service of healthcare to patients. An organization has three basic functional areas, and theses are: finance, marketing, and operations (Operations Management, 2004, p.4). Since operations is one of the three basic functions of an organization it holds a strong significance in the healthcare industry. The contents of this paper will explain what operations management means to the writer, and why is operations management important to a healthcare organization.
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The measurement of productivity in healthcare services is also more difficult than the manufacturing of goods. In healthcare, it is rather difficult to measure the productivity of healthcare providers because healthcare is not quantitative. Less inventory is needed on hand in providing services (Operations Management, 2004, p.6 & 7). The scope of operations management in healthcare requires several different activities performed. Forecasting in healthcare may include ordering

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