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 involves overseeing business activities to attain objectives, enhance productivity, and optimise profitability. It means planning, organising, and supervising operations, manufacturing and production processes, and delivering services throughout a product’s life cycle. Managing the entire production cycle should make sure the creation of high-quality products or services to meet customer needs. In short, Operations management is an important branch of management which ensures business success and profitability.
Why is Operations Management Important?
Operations management is important in a business organisation because it helps effectively manage, control and supervise goods, services and people.
It cuts across the sector and industry. In the health sector, operations management ensures proper health delivery with the right instruments at the right time. It also helps people like nurses and doctors deliver timely service. A technical savvy individual knows what is at fault when something goes missing.
For a production or manufacturing company to be successful, OM must first stand. Take an oil and gas company’s product discharged by ship to the reservoirs to make it available for a large customer. OM sees to the delivery of the products and schedules its execution. With OM, people achieve more, and productivity is increased.
Operations management is widely used irrespective of company size or what they do.
Benefits of Operations Management
1. Product Quality
The operations management is the first unit in a typical firm that checks a product’s durability and reliability. Operations management deals with the 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.
Productivity is the ratio of input to output and is the only way to verify employees’ input. Operations management ensures appropriate staffing of employees to resources to get maximum results. The only way to ensure productivity is through effective operations management.
3. Customer Satisfaction
There is no feeling for a manager or an employee as a customer getting the utmost satisfaction. Operations management rightly ensures this is coupled with a quality product. Customers make organisation 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 product servicing is maximally reduced. This simultaneously leads to increased revenue. Only operations management can make this possible. In reducing operating costs, there is also waste reduction. The exact number/size of products is produced as requested via proper operations management.
What is Production and Operations Management?
Production and operations management is about getting things right. Get the number of products that are the right level of quality at the right time and the right cost. Leverage technology to simplify the process.
Production management relates to the activities around creating products. Operations management involves the production and delivery of products and services. Both are guided by a set of policies that are well-defined, controlled and easy to repeat.
Why Do Managers Need An MBA in Operations Management?
As an operations manager, you get to interact with engineering, marketing, research, and business professionals. 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, among many others. A master’s degree in operations management gives you a theoretical and practical application of OM. It also gives real business handling experience and notes the industry trends. With an MBA in operations management, can solve problems and challenges pertaining to inventory, supply chain and logistics.
Apply now for any of the Exeed’s MBA specialisation and receive a 10% discount on tuition fees.