Like any other managerial functions, operations management is also an important business function, which focuses on the process of transformation to create goods and/or services, keeping in view the customers’ requirements.
Both the internal and external customers’ needs drive the functions of operations management, as every organization needs to adopt a customer-centric approach to provide the goods and services. Conceptually, operations management is similar to other managerial functions. However, specific focus areas are indicated below:
i. Recognition of customers’ needs
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ii. Designing the transformation process capable to deliver customers’ requirements
iii. Managing the transformation process
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iv. Evaluating how customers’ needs are satisfied with the nature of products and the type of services rendered by the organization
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Even though operations management is considered as the first-level function in organizations, it is the most crucial function, as organizational success depends largely on the efficiency of this function. This function needs to be aligned with the customers’ needs; it needs to coordinate effectively with the marketing and HR departments; It needs to identify and develop vendors and ultimately it requires to take responsibility for the business results.
Successful Operations Management Practices:
Operations management is a process of transforming inputs (capital, materials, labour, knowledge and information) to goods and services (output). Obviously, operations management practices require understanding of the entire gamut of operations function, ranging from decisions on design, planning and controlling functions.
Hence, managing operations is not so simple, and it requires the ability to understand what to produce, the type of manpower required to produce the desired goods and services, what methods and processes are important to increase the productivity and quality, flexibility of production systems and the process to adopt to the changes, etc. Successful operations management practices also require interdepartmental coordination, like coordination with HR, Finance, Marketing, R&D, etc.
Thus, we can sum up a few important areas for successful operations management practices as follows:
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1. Understanding the process of development of realistic and measurable goals and objectives
2. Understanding the techniques of short-range, medium-range and long-range plans
3. Understanding the importance of teamwork and the methods of promoting teamwork culture in organizations
4. Understanding how the overall or corporate strategies align with the specific actions taken at the operations level
5. Understanding the significance of ethical operations management practices
6. Understanding the concept of value addition
7. Understanding how technology influences people and performance
8. Understanding the effect of national level and international competition
9. Understanding the influence of culture in operations management practices
10. Understanding the concept of product-mix and how the appropriate product-mix can be selected for better synergy in a product line. (A product- mix is a type of product under a product line. Product line represents a line which produces homogeneous nature of products, viz., detergent is a product line for Hindustan Unilever and Surf, Surf Excel, Rin, Rin Shakti, Rin Advanced, Wheel, Sunlight, etc., are product-mix, i.e., the types of detergent)
11. Understanding the basics of labour relations and various acts and regulations pertaining to labour management
12. Understanding the effect of short-term economic trends.