Term Project

Operation and Service Management

Group Members
Dhurba Poudel
Ranju Poudel
Manisha Tiwari
Nabin Tamang
Sabnam Shrestha

How can an entrepreneur use the tools or knowledge of operations management?

Operation management is the process of planning, controlling and supervising manufacturing

and production processes and service delivery. Entrepreneur can use the concept of OM to create

the highest level of efficiency in the business/organization. It will further be able to cope with

changing markets, ensure a competitive position and helps to improve the business performance.

It also helps to identify the trends in the industry, capacity planning, supply chain management

and inventory management. It provides the knowledge regarding to cope with the problem and

challenges of the company.

An entrepreneur can use the tools or knowledge of operations management in following ways

which helps to improve the business performance.

Product Quality

Operations management checks durability and reliability in a product. Operations management

makes sure that quality of products or goods which would suit customers on and after delivery. A
quality product helps entrepreneurs in getting edge compared to their competitors. Operation

management uses JIT and helps business in matching the demand with supply.

Productivity

Productivity is the ratio of input to output and it helps to verify employee’s input. Operations

management ensures suitable staffing of employees to resources so as to get optimum result.

Operations management helps in ensuring the effective productivity. Operation management

uses process view tool which measures the process performance and helps to transforms the

inputs into outputs by utilizing the resources.

Helps in achievement of objectives

Operations management plays major role in the achievement of pre-determined objectives of an

organization. Operation management makes sure that all activities are running smoothly by

continuously monitoring all operations of organization.

Optimum utilization of resources

Operation management helps entrepreneurs in achieving optimum utilization of resources. It

creates effective strategies and continues all operations of the organization. The job of operation

manager is to keep a track on all activities and make sure that all resources are utilized on only

useful means and are not wasted. Operation management uses little’s law tool to ensures

optimum utilization of resources.

Motivates Employees

 Operation management helps in motivating the employees towards their roles. It guides all

employees in performing their task and provide them with better working environment.

Employees are motivated and rewarded according to their performance level.

Reduced Operating Cost

Through operation management cost of producing products are greatly reduced. This leads to

increased revenue. Only operations management can make this possible. Operation management

uses EOQ tool to reduce unnecessary cost such as warehouse cost, inventory holding cost etc. It

also saves products from getting expired and saves money in overall.

Customer Satisfaction
It’s very important for every entrepreneur that their customers are getting satisfied with their

products and services. Operations management helps in making sure that this coupled with

quality product. Customers are the most valuable assets who helps organization to thrive that’s

why they must be treated well in every aspect.

Competitive advantage

Operation management helps entrepreneurs to have a better competitive advantage with both

internal and external factors which can influence particular industry. It means entrepreneurs

can fine-tune proper operations management details so that they perform better than their

competitors providing the same products or services.

Making Use of Technology in Production

Operations management also uses tech to make the production process faster, smoother and

more efficient. It’s important to select suitable technology for your operations which can

bring it to optimum level of productivity. 

Enhance Goodwill

Operation management improves the goodwill and presence of the organization. Operation

management ensures that quality products are delivered to all customers that could provide them

better satisfaction and makes them happy.

Waste Reduction
One of the most major benefit of using operation management is that it helps businesses in

waste reduction. Operation management allow entrepreneurs to identify where resources are

being wasted. It helps in through inventory control or checks, lean manufacturing strategies,

and JIT inventory management.

Overall, entrepreneur uses operations management for managing activities within the company

for production of goods and services, utilizing those resources from staff, materials, equipment

and technology. Operation management helps entrepreneur to acquire, develop and deliver goods

to clients based on client needs and wants and the abilities of the company so that the company

can upgrade the level and generate profit. Entrepreneur uses operations tools and technique for

grabbing opportunity and to learn the skills and tools needed to bring these innovations to life or

to compete with company mission as operations is an essential part of running any business, and

it’s important for entrepreneur to obtain skills in this area. Entrepreneur use Operation tools and

technique for the possibility of managing a lot of people and developing an understanding of

how the business makes money.

References

Hayes, A. (2022, February 8). How operations management (OM) works. Investopedia.
Retrieved April 5, 2022, from https://www.investopedia.com/terms/o/operations-
management.asp

Aftab. (2021, October 10). Operations management: Functions, importance, scope, nature:
PDF. CommerceMates. Retrieved April 5, 2022, from https://commercemates.com/what-
is-operations-management/

The importance of Operations Management. MasterStart. (2022, March 23). Retrieved April 5,
2022, from https://masterstart.com/blog/operations-management/the-importance-of-
operations-management/