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What is Operations Management and Why it’s Important
Mostly, every organization offers either a service or product to customers. Offering high-quality services/products not only helps attract customers but also builds trust, boosts your sales, and gives you a competitive edge in the market. Certainly, ensuring the product/service offered is of high quality and value for your customers to buy is an integral aspect of every business.
So, how to achieve this? How to make sure that services are offered, or products are manufactured competently? You can make it possible through operations management. No matter what the size of the industry/organization, operations management is one of the most significant components of running every business.
Operations management is one of the most in-demand careers in the industry. Getting the most value out of your resources is the key to profit in every business. If you are seeking a career in operations management, it’s essential to understand the role, responsibilities, and requirements of this field.
What is Operations Management
Simply put, operations management is the administration of business activities to accomplish goals, achieve higher productivity, and maximize profitability. Operations management is the branch of management that administers the complete production timeline of a service/ product from the input stage to the finished stage, including planning, organizing, and supervising the operations, manufacturing and production processes, and service delivery to lead to the desired outcome of high-quality product/service that meets the demands of the customers.
While operations management is the management and control of the functions and operations, project management is the management and control of project activities.
Operations Management – A Core Aspect of Every Business
Project management involves unique but temporary endeavours with a specific beginning and end. On the other hand, operations management involves ongoing activities of an organization that produce repetitive and long-term outputs such as supplying services or manufacturing products. Defining what is operations management for a particular field is essential as it is vital in every field. Operations management aims to ensure that the day-to-day operations are smooth, cost-effective, and well-timed while maintaining critical quality standards.
Importance of Operations Management
Operations management is the heart of any organization. Below are pointers that would explain the importance of operations management.
- Operations management oversees the complete operating system of an organization.
- Operations management is essential for organizations to manage their daily activities seamlessly.
- Operations management controls all the processes and handles issues including design, operation, maintenance, and improvement of the systems. It also maintains smooth, effective, timely production of products and services even when unexpected situations arise.
- Operations management helps improve the reputation of an organization and thus has a positive influence on its capability to achieve growth and stability goals.
- Operations management ensures that products meet the quality standards and customers’ expectations. Thus, satisfied customers also mean customers buy from you again and referrals, which further improves brand value, giving a competitive edge in the market.
- Operations management includes recognizing and optimizing the processes included in the production of services or goods, which can help cut costs. Thus, operations management facilitates selling more products/services and reducing costs, which means increased revenues and enhanced growth of an organization.
- Operation management motivates the employees toward their roles and improves employee productivity.
What is the Role of Operations Management
Operations management constitutes diverse responsibilities, from product development to project management.
- Capacity planning – Operations management involves evaluating the number of products or services a company can sell or distribute in a particular period.
- Product design/service design – Product design or service design involves generating new ideas and creating a service or product to ensure that the products sold/ services rendered to customers meet their needs and expectations. Operations management needs to consider the cost-efficiency of a product while ensuring that it meets the needs of customers.
- Quality control – This involves quality management or quality assurance. It deals with monitoring services or products through each step in the production process or service operations for probable issues or errors.
- Process improvement and optimization – This involves evaluating the steps involved in a process and recreating the process totally or restructuring the steps to maximize efficacy.
- Supply chain management – This involves managing the supply chain process by maintaining control of sourcing of the supplies, the production process, inventory management, sales, and distribution, at affordable rates. This results in lower overhead costs, effective production, and timely delivery of products.
- Operations management is also responsible for high-level strategizing and planning.
Strategies of Operations Management
Operations management involves managing a wide range of tasks – devising strategies is of utmost importance to execute the tasks efficiently.
Strategies of operations management could include the utilization of data, handling data, inventory analysis, identifying departments or specific processes within departments that need overhauling, social accountability, departmental collaboration, human resource management, and many more.
Build Your Career in Operations Management
Managing each and every aspect of operations of an organization efficiently is a crucial role of operations management. Operations management requires broad business knowledge, strong communication skills, and long-term thinking.
Operations managers can have opportunities in several industries and need to play various roles in project management, human resources management, and budget management. There is a wide scope for skilled and qualified operations managers in both the public and private sectors.
Pursuing one of the courses in project management that Emeritus India offers in partnership with the world’s top universities can be a perfect choice to gain the core management skills and knowledge to analyze and make multifaceted business decisions for an organization.
With businesses leaving traditional business models and moving at an unprecedented pace towards advancing technologies, there is soaring demand for leaders with an extensive background in strategy, skills, and awareness. The operations management career outlook is positive. Gaining education to promote operational excellence by enrolling yourself in the best business-related courses in project management, certifications, diplomas, and post-graduation courses we offer in partnership with top-notch universities will drive you towards success.
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