Operations management focuses on increasing an organisation’s income, efficiency, and productivity. It implements best practices that help convert raw materials into finished goods with minimum cost and wastage.
Here, we will look at the significance of operations management in an organisation.
Importance of operations management
- Helps achieve business objectives
Operations management plays an important role in achieving business objectives. It ensures all activities go as per the initial plan by continuously monitoring all operations.
They also oversee the complete operating system of an organisation, manage day-to-day activities seamlessly, and control all processes and issues related to design, production, marketing, finance, etc.
2. Improves employee productivity
Operations management motivates employees to improve their performance by monitoring, measuring, and appreciating their performance regularly. They also monitor the employee training programmes.
3. Optimum use of resources
Operations management focuses on the optimum utilisation of resources of the organisation. Managers formulate tactical strategies that use the company’s resources judiciously. They also keep a check on activities and take preventive steps to avoid wastage of resources.
4. Reduces costs
Operations management includes recognising and optimising business processes, which can help cut costs. Additionally, it facilitates selling more products or services on the same budget, which means increased revenue and enhanced growth.
5. Improves customer satisfaction
Operations management ensures that products meet the quality standards of the market and customers’ expectations. They also formulate marketing strategies to attract the target customers to the product by offering discounts, referrals, or personalised products or services, which improves the brand value, giving companies a competitive edge.
What is Operation Management, and What are its important functions?
Operations management is an administrative function of planning, organising, and supervising the operations of a business for better productivity. It includes managing resources such as raw materials, equipment, and human resources to achieve maximum efficiency and reduce cost.
It also ensures the company’s production systems run smoothly and effectively.
Here are some benefits of operations management:
- It gives you an edge over your competitors
- It provides you with a manufacturing edge
- Improves customer satisfaction
- Motivated employees
Here are some functions of operations management:
- Operational planning: Operations management plays a pivotal role in operational planning. They prioritise the operational efficiency of the organisation and ensure that the latest advancements are introduced in the company’s operational strategy.
- Finance: Operations management helps the company save funds and generate more profits. It (operations management) ensures that project budgets are followed, and the wastage of resources and other operational expenses are limited.
- Product design: The product team may be the creatives of the team, but the operations team are the eyes and ears that gather information from the market. They are responsible for identifying customer needs and requirements and incorporating the latest marketing trend into the product or service to develop a strong product.
- Quality control: After the product team creates a product, the operations team ensures that it meets the quality standards set by the company. They test the product to guarantee there are no defects before making it available to the public.
Planning to build a career in operations management? Take a certificate course in operations management or a relevant field, which will equip you with advanced skills and knowledge to build a successful career.
