Importance and Scope of Operations Management

Mostly, every organization offers either a service or product to customers.
Offering high-
quality services/products not only helps attract customers but also builds trust, boosts your
sales, and gives you a competitive edge in the market. Certainly, ensuring the product/service
offered is of high quality and value for your customers to buy is an integral aspect of every
business.
So, how to achieve this? How to make sure that services are offered, or products are
manufactured competently? You can make it possible through operations management. No
matter what the size of the industry/organization, operations management is one of the most
significant components of running every business.
Operations management is one of the most in-demand careers in the industry. Getting the
most value out of your resources is the key to profit in every business. If you are seeking a
career in operations management, it’s essential to understand the role, responsibilities, and
requirements of this field.
What is Operations Management
Simply put, operations management is the administration of business activities to accomplish
goals, achieve higher productivity, and maximize profitability. Operations management is the
branch of management that administers the complete production timeline of a service/
product from the input stage to the finished stage, including planning, organizing, and
supervising the operations, manufacturing and production processes, and service delivery to
lead to the desired outcome of high-quality product/service that meets the demands of the
customers.
While operations management is the management and control of the functions and
operations, project management is the management and control of project activities.
Operations Management – A Core Aspect of Every Business
Project management involves unique but temporary endeavours with a specific beginning and
end. On the other hand, operations management involves ongoing activities of an
organization that produce repetitive and long-term outputs such as supplying services or
manufacturing products. Defining what is operations management for a particular field is
essential as it is vital in every field. Operations management aims to ensure that the day-to-
day operations are smooth, cost-effective, and well-timed while maintaining critical quality
standards.
Importance of Operations Management
Operations management is the heart of any organization. Below are pointers that would
explain the importance of operations management.
 Operations management oversees the complete operating system of an organization.
 Operations management is essential for organizations to manage their daily activities
seamlessly.
 Operations management controls all the processes and handles issues including
design, operation, maintenance, and improvement of the systems. It also maintains
smooth, effective, timely production of products and services even when unexpected
situations arise.
 Operations management helps improve the reputation of an organization and thus has
a positive influence on its capability to achieve growth and stability goals.
 Operations management ensures that products meet the quality standards and
customers’ expectations. Thus, satisfied customers also mean customers buy from you
again and referrals, which further improves brand value, giving a competitive edge in
the market.
 Operations management includes recognizing and optimizing the processes included
in the production of services or goods, which can help cut costs. Thus, operations
management facilitates selling more products/services and reducing costs, which
means increased revenues and enhanced growth of an organization.
 Operation management motivates the employees toward their roles and improves
employee productivity.
What is the Role of Operations Management
Operations management constitutes diverse responsibilities, from product development to
project management.
 Capacity planning – Operations management involves evaluating the number of
products or services a company can sell or distribute in a particular period.
 Product design/service design – Product design or service design involves
generating new ideas and creating a service or product to ensure that the products
sold/ services rendered to customers meet their needs and expectations. Operations
management needs to consider the cost-efficiency of a product while ensuring that it
meets the needs of customers.
 Quality control – This involves quality management or quality assurance. It deals
with monitoring services or products through each step in the production process or
service operations for probable issues or errors.
 Process improvement and optimization – This involves evaluating the steps
involved in a process and recreating the process totally or restructuring the steps to
maximize efficacy.
 Supply chain management – This involves managing the supply chain process by
maintaining control of sourcing of the supplies, the production process, inventory
management, sales, and distribution, at affordable rates. This results in lower
overhead costs, effective production, and timely delivery of products.
 Operations management is also responsible for high-level strategizing and planning.
Strategies of Operations Management

Operations management involves managing a wide range of tasks – devising strategies is of
utmost importance to execute the tasks efficiently.
Strategies of operations management could include the utilization of data, handling data,
inventory analysis, identifying departments or specific processes within departments that
need overhauling, social accountability, departmental collaboration, human resource
management, and many more.

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Mostly, every organization offers either a service or product to customers.

Strategies of Operations Management

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