Operations management is vital for any organization to manage its daily activities seamlessly. It is “what, when, where, who and why” behind every finished product and provided service. Operations are the activities involved in an organization’s products (goods/services) to satisfy customer demands. Operations management cuts across all industries and sectors. In manufacturing units, operations focus on producing goods, whereas restaurants serve meals, whereas in the healthcare industry, delivering proper aid with the right instruments, and in schools to deliver the right education.
Operations management refers to the management of day-to-day functions that an organization requires to run efficiently, such as –
- Supervising various departments and setting goals
- Controlling and streamlining processes
- Revenue and costs balance
- Plan strategies
- Production and logistics
In the past few years, operations management has gained increasing importance owing to cutthroat competition, increasing productivity, product quality, and increasing demands of customers, etc. The fierce competition is clearly indicating the need to supply products that customers demand, and organizations can only succeed if they ensure a smooth, effective production process. There are numerous benefits that come from implementing operations management strategies to get key insights about areas that need improvement.
Operations management can help organizations achieve –
- Product (goods/service) Quality – The quality of a product refers to its capability of meeting or exceeding a customer’s expectations. The operations management unit examines that goods offered and services rendered meet the quality standards. One of the key functions of operations management is to make sure that the products are designed to be durable and reliable. Implementing a quality management process can ensure the efficient delivery of products/services that customers can trust.
- Customer Satisfaction – Customer satisfaction is the key aspect for any business, as a review from a customer can make or break a business. A happy customer means opportunities for upcoming business through referrals and future buying. Operations management makes sure that high-quality products and excellent, consistent services are created and delivered smoothly. It also focuses on meeting customer needs and increasing their satisfaction. Operation management helps in getting an edge over competitors with the goodwill and presence of the organization.
- Optimum Utilization Of Resources – Operation management frames appropriate strategies for all operations of the organization. Operation managers oversee all activities to make sure that all resources are utilized only for useful means. Reducing waste within operations facilitates the elimination of unnecessary costs and thus fosters improvement in the overall production process within the operation.
- Motivates Employees – Operation management motivates the employees towards their roles to improve their roles and thus boost employee productivity.
- Revenue Growth – Happy customers with excellent service/ quality products surely help improve brand value and get a competitive advantage. This goodwill and reputation further aid an organization in grabbing the attention of more customers. Growing customers help expand the market share of an organization which increases revenue. Furthermore, operations management also identifies and optimizes the processes involved in the production process, which further helps with cost-cutting. Thus, reduced costs and more sales lead to revenue growth, which enables the persistence of progress for the organization.
Strong operations management benefits the business as a whole. Operations management can be challenging to implement. Effective communication, broad business knowledge, long-term thinking, etc., are essential to optimize and enhance the efficiency of operations. Private as well as public sectors demand qualified and skilled operations managers. Pursuing project and operations management courses offered by various universities can be helpful in acquiring core management skills and knowledge.