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Importance of Operations Management in Business Organizations

Importance of Operations Management in Business

Firstly, what is Operations Management (OM)?

Operations management is the process that generally plans, controls and supervises manufacturing and production processes and service delivery. Operations management is important in a business organization because it helps effectively manage, control and supervise goods, services and people.

Operations management cuts across every sector and industry as it may concern. OM finds use in every business though some might not be obvious. In health sector, operations management ensure there is proper health delivery with the right instruments at the right time. It also helps people like nurses, doctors, surgeons, and other health officers deliver timely service. When something goes missing, a technical and savvy individual knows what is at fault.

For a production or manufacturing company to be successful, OM is major unit that must first stand. Take an oil and gas company for example, product has been discharged by ship to the reservoirs in order to be made available for a large amount of customers. OM sees to the effective delivery of the products and also plans and schedules what and how must be done. With OM, people achieve more and productivity is increased.

Operations management is widely used irrespective of the size of a company or what they do.

Key Benefits of Effective Operations Management

1. Product Quality

The first unit in a typical firm that checks durability and reliability in a product is the operations management. Operations management sees to quality of products or goods which would suit customers on and after delivery. When a product is of quality, it gives you an edge compared to your competitors.

2. Productivity

Productivity is defined as the ratio of input to output and it is the only way to verify employees input. Operations management ensures appropriate staffing of employees to resources so as to get maximum result. The only way to ensure productivity is through an effective operations management.

3. Customer Satisfaction

There is no feeling for a manager or an employee as a customer getting the utmost satisfaction ever. Operations management rightly ensures this coupled with quality product. Customers make organization thrive and they must be treated well in every way necessary and possible.

4. Reduced Operating Cost

Through productivity, quality products and customer satisfaction, cost incurred on products servicing is maximally reduced. This simultaneously leads to increased revenue. Only operations management can make this possible. In reducing operating cost, there is also waste reduction. Exact number/size of products is produced as requested via a proper operations management.

Why do Managers need an MBA in Operations Management?

As an operations manager, you get to interact with professionals in engineering, marketing, research, business and all. An MBA in operations management affords you the technical know-how by covering the fundamentals of various areas related to operations management. These areas include capacity planning, supply chain management, and inventory amongst many. An masters degree in operations management gives you a theoretical and practical application of OM. It also gives real experience of business handling and notes the trends in the industry. With an MBA in operations management, you are designed to take up problems and challenges pertaining to inventory, supply chain and logistics.

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