- Introduction
- What are the functions of operations management?
- Importance of Operations Management
- When does one know if the operations management techniques are effective?
- Concluding Thoughts
Introduction
Higher efficiency in all aspects of business functions is what organizations aim for, and that is what Operations Management is all about. It is a sophisticated process of planning, supervising, and organizing the operations of a business to bring better productivity and higher returns. Also, effective operations management reduces operations costs and wastage of resources.
So to find out how organizations work around this critical function, keep reading.
What are the functions of operations management?
The 5 main functions of operations management are:
1. Finance
A financial roadmap in operations management can help an organization plan various investment opportunities, reduce the price of a product and sell it at a lower cost to satisfy the customer’s budget and needs.
The professionals handling this portfolio must keep in mind that finances are not invested in any unproductive tasks. Also, the individual must ensure that the financial allocation is utilized in the best possible manner to give a better and effective Return on Investment (ROI).
Let’s imagine a mobile manufacturing company having a wide range of phone models. The operations manager will determine which product is working well in the market and which isn’t and accordingly plan its production and marketing strategy. By doing so, he/she can ideate on where to utilize the funds and make the maximum out of it.
2. Strategy
Planning, organizing, and strategizing the daily operations and routine is the primary function of operations management. A well-planned implemented strategy can help in meeting the deadlines and production goals of an organization.
The role of an operations manager is to devise effective strategies and plans to streamline the process right from sourcing to delivery to avoid hassles and confusion. The areas of operations management where strategies can be devised are sales, resource management, design, etc.
Right from sourcing raw materials to assembling and delivering the devices, every step is crucial. At any step of the process, if there is any lag or discrepancy, the entire process will come to a standstill as it is interdependent.
3. Product Design
The transformation in technology has become a boon for businesses as it has made the selling process smoother. One of the primary responsibilities of the operations management team is to make sure that the product is well-designed, caters to the needs of customers, and also matches with the current market trends.
Also, the existing products and services in the market can hamper the progress of the new products. Hence, he/she must keep in mind to effectively devise a product design that appeals to the masses and satisfies their requirements.
There are hundreds of new products released every month by various brands. Hence, it becomes a challenge for the product design team to deliver the perfect device that can appeal to the masses. That’s when an experienced operations manager can come in and use various studies and market analyses to help the organization design a product that becomes a massive success.
4. The flow of work processes
It takes a significant amount of work to convert human effort and resources into viable products. And this is the primary function of operations management. The operations management professional ensures that the human resources are directed on the right path to obtain maximum efficiency and effectiveness.
No matter how experienced a professional can be, understanding their expertise and handing them the right task is the responsibility of an operations manager. A product manager has to identify which resource can perform the job effectively and efficiently.
In the process of product development, right from assembling to Q/C and delivery, professionals are required at every stage to help streamline the process.
5. Quality Assurance
Another section where an operations management professional must pay heed to is quality assurance. The consumers of the modern era are more concerned with the quality of a product than its price. Hence, an operations manager has to ensure that the product developed is durable and of top-notch quality.
Quality assurance is another primary aspect of a product, and it determines the brand value. The operations manager has to put the developed product through various test processes and scenarios to ensure that the product stands the test of time and the different environments/contexts it has been used in.
Want to upskill in Operation Management? Check out this free Operations Management course.
Importance of Operations Management
Now that you have understood the functions of operations management, let’s look at how important it is to an organization.
- Enhances productivity
Effective operations management improves the productivity of the entire organization. Various attributes of employees and their performance are evaluated. And then, the operations manager gives constructive feedback to increase productivity after observing the drawbacks.
2. Objectives are met
The operations management team devises processes and strategies to achieve the predetermined set of goals and objectives. They ensure that the activities and processes are going as planned by monitoring the operations.
3. Improves goodwill
Having well-planned operations management tactics in place will give rise to more quality products being manufactured. It directly improves customer satisfaction, therefore, increasing the goodwill of the company.
4. Employee motivation
Since operations management professionals will guide all the employees with constructive feedback and assistance, the employees will remain motivated, happy, and energetic to perform their roles. Also, with effective remuneration and rewarding methods, operations managers can instill more value and satisfaction among their employees.
5. Resource utilization
As said earlier, the prime function of operations management is to ensure optimal utilization of resources. An operations manager sets up strategies and methods to effectively use the resources without wasting productivity or time.
When does one know if the operations management techniques are effective?
When one has devised effective strategies and techniques in operations management, the organization can witness the following:
- Increase in productivity
- Rise in revenue
- Improvement in customer satisfaction
- Enhanced goodwill
- Increase in investment opportunities
Concluding Thoughts
The primary role of operations management is to manage every aspect of the organization’s functioning effectively. A productive operations manager will help in maintaining a proper balance between revenue and cost and also raise the profit of the organization.
Hence, an operations management team strengthens and enhances the production system and minimizes wastage of resources. So, if you would like to be a part of such a team and bring significant changes to the organization, the Executive Post Graduate Program in Management could give you the right start. Head towards the program page to know more about the program.
