Operations management is one of the key aspects of management that is essential for the successful functioning of a company. High productivity, cost optimization, and enhanced product or service quality are all made possible by the art of managing production processes well. In this article, we will discuss the basic principles of operations management and its role in the successful development of business.
What is operational management?
Operational management is a field of management that is responsible for organizing production processes within a company. It includes planning, coordination, and control of activities related to the production of goods or services, as well as optimization of business processes with the goal of increasing the efficiency and competitiveness of the company. Operations management is also responsible for motivating employees and managing the quality of products or services, production resources, and deadlines for completing orders.
Operations management can be defined as the control of activities inside a company process in order to maximize results while minimizing expenses.
What functions does operational management perform?
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Planning
This covers both broad production plans and plans specific to each worker. By planning, I usually mean not some standards that need to be met, but rather a list of specific actions and tasks that help the team achieve its overall goal. Financial planning and individual planning can also be added here. For example, in our company, each employee creates weekly plans. Planning is one of the key management tools for running a business.
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Organization
Production must be planned so that everything runs smoothly if you want to generate high-quality products or services while conserving resources. You need to arrange all elements in the right order, optimize the use of equipment and resources, and of course, attract the best specialists to perform tasks.
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Management of production resources
Resources used in production include labor, machinery, raw materials, energy, and money — everything required to produce the finished good. How well all these resources are utilized determines the standard of operations management.
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Quality management
In order to successfully compete in the market, a company must provide high-quality products or services it produces or provides. To do this, it is necessary to determine quality standards and control methods. In addition, the company must assess customer satisfaction and respond to their needs. Quality management increases trust, improves the company's image, and increases profits.
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Deadline control
The company's departments all carry out their own duties, but they are all connected. A delay in one department might cause delays in other ones, which can eventually cause the entire process to fail. For instance, delivery delays and a loss of consumer confidence may result if the production department is unable to release the product on schedule. Therefore, it's crucial to manage timelines and address potential issues as soon as they arise. Each department should be aware of the tasks being carried out and the deadlines assigned to them in other departments.
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Cost optimization
Cost optimization includes analyzing all the company's expenses and identifying opportunities to reduce them. For example, it is possible to consider options for reducing costs for transportation, electricity, materials, etc. This does not mean reducing all costs indiscriminately. Optimization implies a balance between reducing costs and maintaining the quality of products and services.
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Employee motivation
The manager's primary resources are the team and the people. Therefore, it is his responsibility to use operations management to establish working conditions that will inspire employees to give their all. Moreover, motivation should be both material and non-material. The manager should be able to develop clear communication lines, foster a supportive psychological environment, and provide staff members feedback on their job.
What is the main goal of this type of management?
The main goal of operational management is to establish a productive business where everything functions easily and clearly. Each person in such a corporation is aware of their responsibilities, projects are performed on time, departments communicate effectively, money is spent wisely, and there is a clear organizational structure.
Operational management is an important part of a company's business process. Its main task is to plan, organize, and control production processes with the aim of improving the efficiency and quality of products or services. Effective operations management can become a key factor in the success of a company in the market.
As for the specific tools that help in operations management, I will talk about them in the master class "How to Build a Strong Team in Business".
