Definition Operations Management (OM)
OM is defined as the administration of different types of business processes which can help in the creation of efficiency process and they are beneficial for the business organizations. Based on this concept, resources which are associated to the contemporary business environment such as the raw materials or the human resources are converted into quality products and services which ca satisfy the expectation of the customers. The cost and the overall revenue of the business can be secured in the first place using OM. OM is also responsible for managing the operating profit of this organization. The role of the operations manager is much significant in controlling and designing of the business operations required in the production of goods and services. The entire production house or the service teams of business organization are held responsible for any issues in OM. There are numerous sectors which falls under the category of OM such as banking systems, companies, hospitals, working with suppliers, customers and use of digital technologies. OM is one of the most significant aspects of a business organization, as it helps in managing supply chain, marketing, human resources as well as the finances involved in the business. OM is much involved in both day to day operations as well as the strategic services which are provided by the company.
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Importance of Operations Management
There are different categories of service operations which are provided from OM such as creation and the management of operational strategy, creation of the design of the products, designing the process involved in the creation of the products, quality management, capacity management of the firms. OM is much helpful for business establishments in facilities planning, production planning, and inventory control. Most of the current business situations are managed in the first place using the concepts of OM. Efficiency of the manufacturing process of any business unit can be enhanced in the first place using OM. OM is also responsible for identification of better solution of any operational problem which is confronted by the workers of a business setting. OM is also leading business organization to a completely digital world, where most of the repetitive services and actions are being done with the help of the automated systems. Productivity rate of the business organizations are also increasing in the recent with the introduction of automated systems.
Roles and Responsibilities in Operations Management
The concept of OM is considered both in bigger as well as smaller business environments to strategize their operational attributes. All the organizational activities can be identified in the first place using the concept of OM. Government agencies also makes the most of OM to manage and store different categories of data associated to their processes. Non profit groups as well as the local communities of complex projects also makes the most out of OM. The role of the operational manager is much significant in business organization for addressing the regular challenges as well as the finances of the company. Both the accounts which are payable along with the IT resources of commercial organizations are managed in the first place by the operations manager. The other responsibility of OM is hiring and training of highly qualified and skilful labour forces. Numerous quality assurance programs can be introduced using this concept. OM is much helpful in maintaining efficiency of all the organizational processes which exists in business organizations. An environment of trust can be created among the internal as well as the external stakeholders of a business using the concept of OM. At the same time, it can be said that OM can really be helpful for business organization to maintain a diversity work culture so that workers from different religions and background feel themselves settled in a real quick time. Thus, it can be said that OM plays a major role in enhancing the operational performance of a workplace.
Ideal Skills of an Operations Manager
Skillset of operations manager is much required for improving operational efficiency such as technical proficiency with processes such as production automation, data entry, usage of software to access and tracking of the budgetary information. At the same time, data processing skills are also much required from the operational managers for the collection, entering and the dissemination of operational data of the business environment. Data processing skills are also required to manage the inflow and the outflow of cash, sale transaction, product design, customer account, processes within the supply chain of the organization. Product development skills are required from the operations manager to maintain and improve the quality of the finished units. Identification, monitoring, analysis, and finding the mitigation plan for every operational problem is also one of the skills required from the operational manager. Operational managers must also be a part of the strategic planning process as creative solution of the organizational problems are key to have a competitive edge for business organizations over their rivals.