Operations Management

Operations management is an area of management involved in planning and conducting the

process of production and redesigning business operations in the production of goods or
services. It requires the responsibility of ensuring that business operations are efficient to use as
few resources as needed and effective in satisfying customer requirements.

It is dealt with by managing an entire production or service process, which is the process that
transforms inputs into outputs. Operations develop products, maintain quality, and create
services. Operation management deals with the sectors like banking, hospitals, corporations,
working with suppliers, consumers, and using technology.

Definition of Operations Management

Operations management is a field of business that is involved in the administration of
business practices to boost efficiency within an organization. It requires planning,
organizing, and inspecting the organization’s processes to balance revenues and costs
and carry out the highest possible operating profit.

The administration of business practices to create the highest level of efficiency possible
within an organization is called operations management. It is concerned with turning
materials and labor into goods and services as efficiently as possible.

Operations management is managing the planning, organizing, and inspecting of the

production of goods and services. It assures that your organization successfully
converts inputs (materials, technology, labor, etc.) into outputs efficiently.

Nature of Operations Management

Dynamic Process

OM is a dynamic process that keeps changing as per market trends.

Transformational Process

OM is the management of activities involved in the conversion of raw materials into finished
products.

Continuous Process
OM is a continuous process. It is engaged by organizations for managing its activities as long as
they continue their operations.

Supervision

OM monitors and controls all activities of the organization. It secures that all activities are going
smoothly and there is no mis-utilization of any resource.

Duties and Responsibilities in Operations Management/

Operations System
The primary responsibilities in operations management are called operations system. They are
all aligned with each other.

The duty of an operations manager is to ensure that they are all working together efficiently and
effectively in order to reach the desired goal of useful goods and services for consumers.

The operations system includes inputs, processes, outputs, and outcomes.

● Inputs: expertise, funding, practices, equipment, technologies, facilities, etc.

● Processes: planning (capacity, product, service, inventory, quality control, production,
etc.), and managing productivity.
● Outputs: best quality product and service.
● outcomes: satisfied consumers.

The operations management responsibilities are:

1. Product Design

Product design means planning and creating a product that will be sold to the customers. It
involves developing new concepts or expanding on current ideas in a process that will lead to
the production of new products. The responsibility of an operations manager is to ensure that
the products sold to customers meet their needs, as well as that is following current market
trends.

Customers always choose quality over quantity, so the organization should create products and
services that meet the needs of the customers.

2. Forecasting

Making predictions of events that will happen in the future based on past data is called
forecasting. One of the duties of the operations manager is to predict the customer's demand for
the company's product. The forecast helps the company to determine the future trends and the
number of products needed to satisfy the market demand.
3. Supply Chain Management

A supply chain is an associated network of individuals, associations, resources, activities, and

technologies involved in the manufacture and sale of any product or service. A supply chain
starts with the delivery of raw materials from a supplier to a manufacturer and ends with the
delivery of the completed goods or services to the customer.

The operations manager manages control of inventory, the production process, distribution,
sales, and sourcing of suppliers to supply needed goods at acceptable prices. A well-managed
supply chain process will cause an effective production process, low expanses, and time to time
delivery of products to consumers.

4. Delivery Management

Delivery management is one of the major responsibilities of the operations manager. The
manager makes sure the goods are delivered to the consumer from time to time. They should
follow up with consumers to assure that the products delivered are what the consumers required
and that they meet their functionality needs.

If the customer is unsatisfied with the products or services, the operations manager must
receive the feedback and forward that to the specific departments.

Above are some of the most important responsibilities of operations management. Now here are
some other responsibilities of OM:

1. provide leadership for the organization.

2. Make policies, strategies and decisions.
3. Assist HR when necessary.
4. Promote a company culture that encourages top performance.
5. Work with stakeholders.
6. Work with board directors to decide values and mission.
7. Define short-term and long-term goals.
8. Identify the issues and opportunities for the organization.

Benefits of Operations Management

Now let's discuss some key benefits of operations management:

1. Product Quality

The first crew in a company that verifies durability and safety in a product is the operations
management. Operations management reviews to quality of products which would suit
customers on and after delivery.
2. Productivity

Productivity is actually the ratio of input and output. It is the only way to measure employees'
effort. Operations management ensures the best staffing to maximize the output of a company.
The only way to secure productivity is through an active operations management.

3. Customer Satisfaction

Operation management helps to enhance the goodwill and presence of the organization. It
assures that best quality products are delivered to all customers that could provide them with
better satisfaction and make them happy.

4. Utilization of Resources

Operation management concentrates on maximum utilization of all resources of the company. It

frames appropriate strategies and subsequently continues all operations of the organization.
Operation managers keep a control of all activities and ensure that all resources are used by
only useful means and are not wasted.

5. Maximize Revenue

Operational management directly affects the profitability of the organization. It focuses on

cutting down the cost of operations to business by reducing the misuse of resources.
Operations managers review every production activity and take all significant steps for
maintaining productivity in the organisation. Operations managers try to keep an appropriate
balance between cost and revenue.

6. Improve Innovation

Operation management implements innovative changes in organisational activities. All

decisions regarding production planning are taken by operation managers by conducting
research and study of prevailing market conditions. It considers all technological changes and
develops a strong base of knowledge and operations. This brings various innovations into
operations of the business.