The Importance of Operations Management

The Role of the Operations Manager

According to the Cambridge Dictionary, the meaning of operations management is defined as the following:

The control of the activities involved in producing goods and providing services, and the study of the best ways to do this.”

In essence, the role of operations management is crucial to any business.

Imagine this: you’re a plastic manufacturer and supply various companies with packaging. You’ve just brought a new client on board and they’re looking to launch their goods within a month or so. Where do you start? Well, the operations manager will ensure that the correct budget is allocated, the right people are on the job, and to make sure that everyone involved is aware of the roles they play. This will help to ensure that the deadline is met and within budget.

Effective operations management also helps with employee engagement and defines the roles and responsibilities within an organisation. No matter what obstacle an organisation faces, a strategic operations management plan in place will ensure that employees’ workflow and company production remain unaffected.

Benefits of Operations Management

A smooth operations management process has many benefits for an organisation, including:

Product/service quality

How do you ensure that your product/service is of the best quality? Having a checklist that meets the objectives and goals of the company as well as meeting the customer’s needs.

The operations manager will have a set list of processes and a checklist to determine that everything is in order during the pre-production process. This includes making sure that everyone is aware of what the product/service needs and informing everyone of the product/service objectives.

Once the final product has been created, the operations manager will assess to ensure it meets the organisation goals and that the customer’s needs are met. Thereafter, the operations manager will review the pre-production process to ensure efficiency for the next creation.

Customer satisfaction

A customer review can make or break a business. If a negative word spreads, it could be a challenge to retain clients. This is why it’s important to ensure that your customers’ needs are at the forefront of your product or service.

The operations manager will conduct a quality management process, a methodology uses to create a product/service that will meet the customers’ needs. If the organisation is a service provider, the customer is the lifeblood. The operations manager will have processes in place to make sure that the service quality is the best. A returning customer means more for the bottom line.

The elements used to help gain a satisfactory customer includes:

Quality management: To ensure the organisation maintains a consistent and good service.
Employee capacity: Making sure the right people are in the right roles, which helps produce a good product/service.
Planning: To make sure that there is no lapse in production and that goods/services are on time.
Enough inventory: To keep up with customer demand.

With these four elements in mind, the operations manager can meet the customers’ needs.

Revenue Increase

An organisation will have a good reputation thanks to great product/service quality and customer satisfaction. This leads to increased revenue from a new customer base. The revenue growth could help with the launch of new and innovative products/services or an increase in resources and technology.

Competitive advantage

An effective operations management plan also means a business could be ahead of its competition. If internal and external factors are managed well within an organisation, it could mean a good standing within the market.

Compliance

There are certain rules and regulations an organisation needs to adhere to. The operations manager will have certain controls in place to avoid fines and to make sure the organisation is running within a lawful manner.

Motivated employees

Overall, the operations manager ensures that employees know the roles within a company. This is important because often, employees feel left out and demotivated if they feel they’re not contributing in a meaningful way. An operations manager helps define these roles to ensure that production is maximised and efficient.

Why study Operations Management?

Understanding the values and nature of operations manager could help you become a good manager. The skills you learn could be applied across all industries and you will likely be valuable within your own organisation.

With online learning, there is no interruption to your workday and you’ll learn in an environment comfortable to you. Studying an operations management course online could help you gain an effective management strategy that will benefit your organisation.

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