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What is Operations Management?
Operations management is a field of study that looks at the operations, or production-related aspects of business. It analyzes how companies can maximize efficiency and profitability by improving their use of raw materials, labor, energy and facilities. Operations managers are often responsible for balancing inventory levels against customer demand in order to maximize profits and minimize losses.
Businesses operate with constraints: limited resources, limited capital and a set number of products to produce. The ability to balance these constraints effectively is known as efficiency. Operations management is the study of optimizing efficiency. It is the set of activities performed at a company to maximize the output of a business. Operations managers try to balance the resources of their firms by:
Inventory management provides a different view on operations management than in other fields. Operations management looks at the allocation of resources to product, as well as manufacturing and inventory. In contrast, inventory management looks at the allocation of resources to products, as well as retail and service. In this sense, operations management can be viewed as supply chain management while inventory management is supply chain optimization.
Types Of Operations Management Are;
- Consumer Operations Management: dealing with goods and services that are used by end consumer on day to day basis. It deals with sales and business process management. In consumer operations, an enterprise organization has to keep delivering products that customers have purchased and keep them satisfied.
- Service Operations Management: Service operations management deals with the service provided by the company to its customers. Service industry help other companies achieve their goal by providing services such as security and cleaning.
- Manufacturing Operations Management: This type of operations management involves the planning, design, and control of manufacturing processes. Manufacturing is a major industry that provides a lot of useful products to the other industries. Manufacturing process management involves all variations in production process and equipment that are used by manufacturing enterprises.
- Credit Management: In modern society, business with customers is considered as one of the biggest aspect in any company or organization. Credit management deals with managing customer when it comes to financial transactions and ensuring that the companies get what they want from the customers.
- Quality Management: Quality management deals with ensuring that goods and services provided by enterprises are of high standards and good quality. The main idea in quality management is to provide the goods or services which are expected by the customer.
- Supply Management: Supply management deals with controlling the supply chain, which is the procedure of making goods available to customers. The supply chain involves connecting all suppliers, distributors, and production facilities. Production of goods and services depend on supply chain which can be affected by many different factors.
- Sales and Marketing: Sales and marketing is one of the most important part of business. It is involved in ensuring that companies get maximum profits from all its transactions with customers. Sales and marketing consists of both sales and marketing operations management which deals with sales force, relationship building, placing advertisements, analyzing market, leads generation, and research among others.
- Business Process Management: Business process management deals with the system and process of any business or organization. It involves managing in order to ensure that processes are efficient and approved. The main goal of this type of operations management is to make sure that the company’s current business operations are highly efficient and profit maximized.
- Human Resource Management: This type of operations management deals with all human resources that are involved in running the organization or business. All human resource will be involved when implementing any new policies, procedures or additional systems in the company. This will help improve productivity, minimize costs, and increase efficiency and effectiveness.
The importance of Operations Management
The goal of Operations Management is to be able to control the flow and production of goods through effective use and management of activities. This includes managing supply chain activities.
The management of operations generates a need for knowledge about the nature and complexity of all processes that go into producing a good or service. It involves the creation and implementation of control systems that are capable of correctly forecasting the needs and demands from the production process.
Marketing can be seen as an element of operations management. In order to effectively manage the business, managers must be able to foresee and predict the future needs of customers and keep an eye on competitors in order to make decisions regarding marketing strategies.
Operations management is one of the most important disciplines involved in achieving operational excellence. It focuses on managing and controlling all the processes involved in getting a product to market.
Operations Management can also be understood as the art of embedding business rules into the process of handling a particular business function such as production or sales, for example.
The Operations Management Unit/Course Encompasses The Following:
- Supply chain management,
- Production planning,
- Inventory control,
- Quality control
- Introduction to Operations Management
- Production Control And Planning
- Logistics And Supply Chain Management
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