Operations Management
The planning, organizing, and inspecting of an organization's processes to balance revenues and costs to get the highest possible operating profit.
Key Takeaways
The operations management responsibilities are: product design, forecasting, management of the supply chain, and the delivery of the product or service.
Operations managers try to keep an appropriate balance between cost and revenue.
Operation managers take all decisions regarding production planning, by conducting research and the study of overcoming market conditions.
Operations management is an area of management involved in planning, conducting the process of production and redesigning business operations and production of goods or services.
The Nature of Operations Management
Operation management is a dynamic process that keeps changing with market and industry trends; it is the management of activities involved in the conversion of raw materials into finished products. Operations management is a continuous process that is engaged by organizations for managing its activities as long as they continue their operations.
Duties and Responsibilities of Operations Management
The duty of an operations manager is to ensure that they are all working together efficiently and effectively in order to reach the desired goal of producing useful goods and services for consumers. The operations management responsibilities are: Product Design, Forecasting, Managing the Supply Chain, and the Delivery of the product or service.
1. Product design
Product Design means planning and creating a product that will be sold to the customers. It involves developing new concepts or expanding on current ideas in a process that will lead to the production of new products. The responsibility of an operations manager is to ensure that the products sold to customers, meet their needs, as well as making sure that its following current market trends.
2. Forecasting
Making predictions of events that will happen in the future based on past data is called forecasting. One of the duties of the operations manager is to predict the customer's demand for the company's product. The forecast helps the company to determine the future trends and the number of products needed to satisfy the market demand.
3. Supply Chain Management
A supply chain is an associated network of individuals associations, resources, activities, and technologies involved in the manufacture and sale of any product or service. A supply chain starts with the delivery of raw materials from a supplier to a manufacturer and ends with the delivery of the completed goods or services to the customer. The operations manager manages control of inventory, the production process distribution, sales and sourcing of goods at acceptable prices.
4. Delivery Management.
Delivery management is one of the major responsibilities of the operations manager. The manager makes sure the goods are delivered to the consumer. From time to time, they should follow up with consumers to ensure that the products delivered are what they are required and meet their needs.
Benefits of Operations Management
1. Product Quality
The operations management staff is the first crew in a company that verifies durability and safety in a product. They also review the quality of products that would suit customers on and after delivery.
2. Productivity
Productivity is actually the ratio of input and output. It is the only way to measure employees effort. Operations management ensures the best staffing to maximize the output of a company.
3. Customer Satisfaction
Operation management helps to enhance the goodwill and presence of the organization. It ensures that the best quality products are delivered to all customers that could provide them with better satisfaction and make them happy customers.
4. Maximize Revenue
Operational management directly affects the profitability of the organization. It focuses on cutting down the cost of operations by reducing the misuse of resources. Operations Managers review every production activity and take all significant steps for maintaining productivity in the organization. Operations managers try to keep an appropriate balance between cost and revenue.
5. Improve Innovation
Operation management implements innovative changes in organizational activities. Operation managers take all decisions regarding production planning, by conducting research and the study of overcoming market conditions. It considers all technological changes and develops a strong base of knowledge and operations.