Operations management has to do with the physical goods and services that are involved in our day-to-day routines. It is the management of the entire process that transfers inputs into outputs. The outputs are the physical goods and services, while the inputs are seen as the material manpower and machines power.
For instance, in a steel corporation, the material metals in this case are meant to be reshaped by a machine. This particular machine will be operated by a machine operator. Therefore, the metal becomes a finished component through the transformation process. This designed metal that has been transformed is the output of the entire process.
A central aspect of operations management is the improvement of the transformation procedures. These procedures can be achieved by concepts such as;
- Total Productive Maintenance
- Total Quality Management
What Is Operations Management
Operation management is a specific area of management that has to do with the conducting and planning process of production, redesigning business operations and the production of goods and services. It requires inspecting and organizing the company’s procedures. This is done so that the company will be able to balance the revenue and costs to get the highest possible operating profit.
Furthermore, operations management is a dynamic process that keeps changing per market trends. It is the management of activities that has to do with the conversion of raw materials into finished goods, services or products.
Similarly, it is a continuous process that is engaged by business organizations or companies for managing their activities as long as they continue their operations.
What are the Types of Operations Management?
There are three (3) types of operation management, they are;
- Strategic Operation Management
- Tactical Operation Management
- Operational Management
#1 Strategic Operation Management
In order for you to properly understand strategic operation management, you will need to absorb the true meaning of a strategy. What is a strategy? Strategy in business can be explained as a particular plan, which is adopted by a business organization in order to reach its business goals.
Strategic operation is the planning or positioning of a business organization relative to its environment, which as a result, brings the business organization closer to its long-term goals.
Also, the process of strategic operation management requires a series of strategic decisions, for setting the roles and activities within the business organization.
Equally important, the way a strategic operation is viewed, depends on the perspectives. These perspectives of strategic operations could be from top to bottom, meaning the goal of the business organization could also be from bottom to top.
#2 Tactical Operation Management
Tactical operation management has to do with introducing an element of planning. At this stage, they look ahead over the coming weeks and months, identifying what may need to be done.
Additionally, they start putting plans in place in order to do these things. In most situations, it is often, but not exclusively project-based. Some examples of tactical operation management are; a refurbishment project or three-monthly routine maintenance.
#3 Operational Management
Operational management is the making of plans by the front-line or lower-level managers. All operational management plans are focused on specific procedures and processes that occur at the lowest levels of the organization. Managers must plan the routine tasks of the department using a high level of detail.
What are the Basic Principles of Operational Management?
In the business world today, operations management holds such great importance because it provides the highest level of profits when it comes to services and their quality. Below are some of the principles of operations management. They include;
#1. Being Aware of the Competition
The management should always know about their customers and the best services provided by other organizations. They should look for opportunities to either compete with them directly or find articles and add them to the upstream publications.
Finally, listing the company’s competitors and knowing their strengths and weaknesses should be a part of the company’s strategy.
#2. Be Focused
Being focused is one of the basic principles of operations management. In this type of organization, there is always a need to focus on the reasons why customers are not buying from you. The team needs to spend more time on the customers’ needs and complaints too.
Besides, paying attention to the efforts that offer the best chance of success, communicating regularly and being transparent will bring rapid growth. In other words, the organization just needs to focus on less and simplify its priorities more.
#3. Putting the Organization’s Resources in Order
By putting the organization’s resources in order, the management will be able to match the demand in the service industry. They should make sure that all assets are available to the firm for use during the production processes. Some examples of these organizational resources are human, monetary, raw material and capital.
#4. Ensuring There is Continual & Rapid Improvement
The management should always try to deliver the best quality result with non-stop improvement. One of the management’s goals should be to provide a quick response to their customer’s demands. This will add to the organization’s value.
#5. Maintainance of the Organizations Equipment
Before the management purchases new equipment for the organization, it is advisable to improve its current assets first. The management should adopt a high-maintenance routine that will be followed regularly. Also, provision of lubricants should be made available. With the application of lubricants, the equipment will be well protected.
Moreover, if the company invests in automation, this will automatically increase the reliability of the equipment.
What are the Main Functions of Operational Management
The functions of the operational part of an organization are very essential. This is simply because operations management in an organization is where critical planning and activities are carried out. Below are some of the main functions of operational management, they include;
- In the field of operational management, they manage and monitor the production of goods and services.
- Most of the resourceful activities are carried out by the operational management.
- The operational management are able to manage activities and create strategic planning with their team.
- Every production activity is carried out by the operational management, from the beginning to the end.
What are the Examples of Operations Management
Depending on the type of organization, there are various types of operations management. Here are some examples to help you out in getting to know the operations management better, they are;
#1. Supply Chain
A supply chain is an end-to-end process of transporting and sorting supplies. It works with both goods that are in process and the finished goods. For instance, a train manufacturer works to manage the flow of their material and parts to the factories, he or she works until their finished trains are delivered to the customers.
#2. Service Delivery
Just as the name suggests, it involves the delivery of services to customers. The best example in this category would be theme restaurants. Have you ever visited a theme restaurant and wondered how everything works? There is a whole team behind it. A theme restaurant that delivers services like food has side attractions, performances, and guest services need a good operating process and decision-making. Here, you can also consider the operation of information technology services, like a software platform.
#3. Procurement
Procurement basically means the process to develop requirements for inputs, also selecting and managing suppliers. You may wonder why this process is necessary. It is quite necessary to avoid scams and save yourself from fraud.
In addition, the procurement process is carefully controlled to ensure that suppliers meet the organization’s requirements such as quality, sustainability and reliability. For example, a clothing company that works with silk materials will source the silk from different vendors and suppliers just to ensure that they run their businesses ethically.
Operations Management Salary
In an organization, the operations management is divided into various sections, as are their salaries. The operations management salary will vary depending on how high your position is.
As mentioned above, there are various sections in operations management; however, the highest position should be operation manager. According to data analysis in the United States, the average salary of an operations manager is $111,362, with a typical salary range of $95,637 to $123,884.
Operations Management Jobs Description
The operations management job description can assist you in setting up a job advertisement that will attract various candidates with qualifications for the available. It will also help unemployed qualified candidates to understand the duties and roles, which are necessary requirements to be an operations manager.
A good job description is simply a detailed explanation of the roles and duties of a specific job. It contains the necessary responsibilities and skills which a job seeker should possess.
What Qualifications Does an Operations Manager Need?
There are several qualifications and skills that an operations manager needs and must possess in order to carry out his or her various responsibilities. The operations manager is a key part of management, he or she will be the head planner of each and every activity that is being carried out.
It is their duty to oversee high-level HR such as attracting talent and setting training standards, including hiring procedures. One of their major roles is to analyze and improve organizational processes, and also work to improve quality productivity, and efficiency. In order for an operations manager to attain all these, there are certain skills he or she must possess and these are the necessary qualifications. Some of these qualifications include;
An operations manager must be able to analyze a large amount of data. He or she should possess the following skills;
- Account management
- IT management
- Business management
- Program management
- Design
- Office management.
- Leadership qualities
- Tolerance
- Ability to work with people
- Diligence
Above are the necessary qualifications that an operations manager should possess.
Business Operations Management
Business operations management in an organization is basically one of the most important parts of the organization. It studies systems of processes which has to do with creating value and transforming inputs into higher-value outputs.
There is a slight difference between operational management and business operation management. In every organization, there is operational management, and in this field, all the production and operational activities are carried out here. In business operations management, on the other hand, the productive activities carried out here are for business purposes.
Conclusion
In conclusion, operations management is all about the production activities that are carried out by the operations manager and his team. Likewise, the strategic planning and tasks have been divided into several categories for every individual in the operational management team to carry out. It is a very important part of an organization and if this management has any issues, the organization will not be able to function properly
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