Business Management: Chapter 1 - Functional Areas of Business
12 Key components of Operations Management:

Forecasting - Component that caters to historical data, facts, figures, and statistics within the organization.
Location strategies - Oversees product base, market base, and vertically differentiated locations.
Maintenance - Locates methods to reduce frequency of failures within the production facility.
Purchasing - Could be either centralized, decentralized, or combined.
Scheduling - Pertains to scheduling of equipment or labor.
Total Quality Management (TQM) - Enables the organization to work toward zero defects within the organization.
Quality - The overall ability to meet consumer expectations in terms of product quality.
Just In Time - System that will match stock availability with demand; can also have stock arriving exactly when needed.
Materials Requirements Planning - Effectively manages inventory levels to ensure for cost reduction.
Process and System Performance - Measured through examination, capacity utilization, or production.
Layout of Facilities - Ensure for a smooth workflow.
Inventory Management - Adequately controlling stock within an organisation.


New Product Strategy – Innovators have clearly defined their goals and objectives for the new product.
Idea Generation – Collective brainstorming ideas through internal and external sources.
Screening – Condense the number of brainstormed ideas.
Concept Testing – Structure an idea into a detailed concept.
Business Analysis – Understand the cost and profits of the new product and determining if they meet company objectives.
Product Development – Developing the product.
Market Testing – Marketing mix is tested through a trial run of the product.
Commercialization – Introducing the product to the public.