Most businesses provide consumers with either a product or a service. High-quality services and goods not only assist in drawing in clients but also foster consumer loyalty, increase revenue, and provide a business with an edge over rivals. Undoubtedly, a crucial component of any business is making sure the goods or services provided are of the finest quality and worthwhile for the clients to purchase.
In order to achieve that and to ensure that the services and products are of premium quality, one can make it feasible through operations management, which plays a crucial role in every aspect of operating any firm, regardless of the size of an organization.
Operations management is one of the sector’s most sought-after and in-demand professions. The secret to any organization’s success is maximizing the value of the resources. If you are looking or interested in working as an operations manager, it is vital to understand the requirements, responsibilities, role and function of operations management.
What is operations management?
Operations management is the management of industrial procedures to achieve the finest degree of productivity. It is the arranging, supervising and planning of business procedures and methods to optimize efficiency and accomplish target goals. It involves setting up and running the processes that turn resources like labor, machines and other resources into completed products and services in order to increase the organization’s profit. Teams in charge of operations management work to maintain a balance between costs and income to maximize net operating profit.
What is the significance of operations management in an organization?
As previously said, operations management can be regarded as the hub of any company, sector, or organization. Several factors contribute to its significance, but a few of the important ones are described below:
Assists in the accomplishment of goals: One of the top priorities of any organization is to work hard to accomplish its targeted goals. Operations management has a critical role to play in the achievement of an organization’s set plans and objectives. Every facet of the organization’s procedures and functions are regularly reviewed to ensure everything operates according to plan. Having a well-functioning firm that follows strategic plans aids in achieving goals.
Boosts company productivity: Any organization’s ability to increase business productivity will depend heavily on its operations management. It oversees every area of industrial activity to ensure maximum efficiency. Operations managers must create production techniques and plans to carry out the activities. They make sure that all the inputs used by companies are effectively converted into results (i.e., goods or services). All firms must appropriately manage their daily operations and use their resources, which helps in increasing production.
Enhances worker productivity: The productivity and performance of staff and workers are increased via operations management. It evaluates the performance of each worker and assesses their contribution while working in a company. The operations manager also instructs and trains the team to improve their efficacy and perform better.
Quality control: Operations management also gives attention to enhancing the quality of the services and goods. Keeping up product quality and providing customers with what they require helps businesses draw in more clients. Consequently, they significantly contribute to developing satisfied clients who frequently purchase the company’s products and services and promote them to others. This entire process boosts the brand’s recognition and value, offers it a market edge, and boosts the company’s revenue.
Increases company goodwill: Operations managers enhance and maintain the company’s reputation and image in the market and customers’ eyes. They take great care in ensuring that the company does not give the wrong impression to customers and that all consumers are guaranteed to receive high-quality items, increasing their level of pleasure and making them feel satisfied.
Optimal resource utilization and waste reduction: Operations management lowers the company’s additional capital needs. Operations management oversees the manufacturing processes that prevent capital shortfall. The purpose of operations management is to efficiently utilize all the company’s resources in order to improve its performance directly and indirectly. It also involves studying past research as well as coming up with evidence-based strategies and implementing them to enhance organizational functions and outcomes at various levels. Operations managers monitor all operations to prevent waste and to make sure that all resources are used exclusively for their intended purposes.
Encourages and motivates workers: Operations management assists in inspiring and encouraging workers to do their duties. Giving employees the best environment and guiding them while performing their duties also comes under the supervision of the operations manager. Employee compensation and rewards are determined by their degree of performance.
Teamwork: Operations managers may improve teamwork within your company by making competent decisions. Making well-informed choices and considering employee input boosts employee confidence, enabling the development of high-quality products for customers.
Enhances innovation: Operations management supports the implementation of creative adjustments to business operations. It aids in introducing numerous improvements into industry operations and creates a solid foundation of processes and knowledge while accounting for all technological and other advancements. The operations managers first do their research as well as analyze the condition of the market and then make all the decisions and plans accordingly.
Operations management examples
There are several examples from various sectors, since operations management is essential to the running of every firm. Additionally, any industry can have a diverse spectrum of operational tasks. Some of them include the following:
Operations management in healthcare: The term ‘operations management’ in the context of healthcare describes the control of routine activities carried out in a healthcare institution in delivering high-quality patient care and carrying out other organizational objectives. The operations manager is responsible for monitoring administrative tasks, controlling financial functions and maintaining legal compliance.
Operations management in restaurants: Every restaurant has multiple operational responsibilities and duties. A restaurant with an appropriate working and operational plan can run efficiently and reduce the chances of getting any external and internal damage. Moreover, it also describes the way to handle everyday tasks to drive a restaurant smoothly. Operations management of the restaurant includes supervising and training workers, managing inventory, controlling financial processes, payroll, etc.
Operations management in transportation organization: Running a transportation organization requires management to achieve their daily operations and functions. It includes all forms and facets, such as handling and controlling vehicles, fuel, staff, warehouse, routes, communication and much more.
Operations management in the manufacturing industry: Different industries make different products and offer various services to their customers. Managing the processing of these products and services requires proper planning and groundwork. Operations management provides industries with a way to make the manufacturing process effective. It helps maintain equipment, track inventory, manage raw materials, handle staff, etc. All of these will aid in reducing and minimizing the expenses of a business.
What is the role of operations managers?
Operations managers organize, create new procedures, and reassess existing systems. Operations managers are responsible for utilizing employees, supplies, tools and technology as resources. Depending on the capabilities of the business, operations managers design and produce products as well as deliver products to clients based on consumer needs. Moreover, operations managers face several strategic challenges, such as choosing the size of industrial plants, project management techniques, and information systems design and architecture. They are also in charge of handling inventory levels, including ongoing procedures and purchasing raw materials. Furthermore, they also oversee quality control, material handling and management of policies. Operations managers must be organized and productive, and their work frequently calls for creativity and adaptability.
Operations management is divided into several categories. Regardless of the size or kind of company and the sector, an operations manager’s responsibilities might differ accordingly. It could be focused on a specific area or have a wide variety of duties. A few of them are listed below:
- Product/service design and development
- Capacity planning
- Supply chain management
- Quality management
- Inventory control
- Forecasting/scheduling
- Purchasing
- Maintenance
- Planning
What skills are required to become a competent operations manager?
Possessing the following abilities would help in becoming an effective and competent operations manager:
Staff management skills: Every firm consists of staff and workers that are involved in many types of operations, and managing them is a crucial responsibility. To handle them in a manner so that they can correctly and effectively perform their duties, the operations manager must have the ability to manage employees. The obligations of the operations manager toward staff include providing a safe and healthy workplace, staff wellbeing, approving leave, scheduling shifts and resolving conflicts. The manager should know each staff member’s capabilities. In order to get beneficial results, the manager must give jobs to the employees according to their skills and expertise. A person who has the patience and ability can effectively handle staff.
Decision-making skills: Operations managers need to make a lot of critical decisions, and these decisions help to maximize efficiency while satisfying customer demands. Managers can fulfill a variety of operations management responsibilities more successfully if they make judgments based on factual data. The only way to conduct forecasts accurately is to base them on facts. Analyzing previous trends can help in forecasting future product demand. Share the forecast results with the department leaders so they can make any required changes to your future plans. Therefore, good decision-making skills are necessary to bring positive results in business.
Maintain quality: Maintaining quality standards is the primary and foremost duty of operational managers. They are responsible for maintaining the quality of equipment, inventory, raw materials, packaging, manufacturing processes and delivery, as well as managing the staff. All these factors are in operation during the manufacturing of the final product or service. Therefore, a problem with any one of them might halt the whole procedure. The quality of products or services is directly related to customer satisfaction, eventually leading to a boost in business revenue. Thus, the operations manager should effectively control the quality requirements of their product or service.
Technical skills: The operational managers are well-versed in the technical operations of the industry (i.e., machinery and software systems). They should also have knowledge of how to troubleshoot if any technical issue occurs. They should also be responsible for bringing new technological advancements into a business. Operations managers must collaborate with other professionals, such as engineers, inventors, etc., to introduce new and innovative technologies within the organization. Doing so will ultimately help in improving the operations and quality of products as well as save time and resources.
How to become an operations manager
Every industry or business relies heavily on operations managers to keep the operation running seamlessly. The field of operations management is ideal for those who are highly ambitious and have a passion for becoming great leaders. Here are some career growth strategies a person needs to follow to become a qualified operations manager:
Education: The utmost requirement of any individual to pursue their career in the field of operations management is proper education. The minimum requirement is to earn an undergraduate degree in the field of business or a closely related field, such as management or accounting. Most firms nowadays prefer to hire such individuals who have gained a master’s degree in operations management. Therefore, it is also advisable for you to earn a master’s degree to increase your chances and promote your career in the business industry. The MSc Business & Management degree program at Aston University will help you develop these abilities so that you may find greater employment prospects.
Develop yourself by gaining practical experience: To bring yourself to a deserving position, a lot of patience and hard work is required. A few years of management or supervisory experience are often necessary for jobs as operations manager. Start with entry-level employment in the business sector to expand your skill set, deepen your knowledge of the industry, and make contacts that might one day help you grow further in your career. A few examples of work titles are project manager, business operations analyst, retail manager and customer service representative.