Importance Of Operations Management In Business
Operations management is considered one of the most significant elements in any kind of business especially if the business is associated with Production and Manufacturing. Operations management is closely associated with factors like planning, organizing, and supervising the Production and Manufacturing services of the business. One of the most basic objectives of operations management implementation is to make sure that the organization is effectively and efficiently utilizing its input resources in order to generate output. Operations management helps to improve the efficiency and effectiveness of the organization from raw material to product.
They are different significant advantages of implementing operations management in a company related to Production and Manufacturing. It is considered a fundamental part of such organization. It plays a significant role in the success of the organization. It is concerned with the creation of the goods or services provided by the company to its customers and market. This field of operations management is an important field for any company but at the same time, it is considered to be a challenging field for the organization. Most of the Japanese manufacturers have implemented operational management techniques and their organizations in order to improve the efficiency and effectiveness of their Production and Manufacturing. (Ukessays.com, 2016)
As a result, most of the Japanese businesses have managed to focus on their other departments like finance and marketing because operational management helps the organization to make the production or manufacturing department effective and efficient. By this, they can allocate the proper amount of time for other departments in the company.
It is important for any organization to help innovation in its Production and Manufacturing stages. Without the implementation of innovation, organizations related to Production and Manufacturing cannot effectively compete with competitors in the market. One of the most significant methods, which can be used in order to implement innovation in manufacturing and production process, is to improve the production process.
By improving the production process, the organization is able to effectively use its Limited amount of raw material in order to effectively and efficiently convert it into products. It is important to implement new technology in order to improve the process of production. This ultimately improves the level of operations management in the organization. (Brown)
Different studies have been conducted in past suggesting that there is a positive relationship between operations management and sales of the company. With the increase in the level of effectiveness in operations management, the organization is able to positively increase the sales of the company. It also contributes positively to reducing the cost and reducing the production and operational cost.
These factors are significantly important for the progress of any company. There are two methods, which can be adopted in order to increase the sales of the company. The first method suggests that the overall sales of the company can be increased by using Different techniques like promotion, discounts, offering value-added products, and other related techniques. The other method suggests that the operational cost of the company can be reduced in order to improve the overall profits of the company. (Mitsde.com, 2018)
Operation management is responsible for a significant portion of the Assets of most organizations due to which this department is considered one of the most significant departments for the progress of the company. The concepts, Tools and techniques, which are available in operations management, are widely used in order to manage other related functions. By effectively implementing the Tools and techniques of operational management, the managers can effectively reduce the operational costs, which would ultimately increase the gross margin and net profit of the company.
Another significant function of the operational department is that it effectively facilitate corporate between the different departments in the organization. It helps to formulate a linkage between the Finance Department, Marketing department, supply chain department, and other related departments in the organization (get smarter, 2017).
Another significant role of operations management is associated with Cost Management. Most of the cost related to the production of goods and services are associated with different factors like cost of acquiring resources, transforming the acquired resources into finished products and then delivering them to customers. For most of the organizations mostly in private sector, most of the cost is associated with the efficient and effective use of resources available to the organization. These resources can be effectively managed by properly implementing operations management in the organization and it will also help to critically compete with competitors in the market and will help the managers to manage the business operations with fewer amounts of cost and expenses.
In modern days, amount of competition is increasing with the passage of time due to which it is important for the organizations to have significant amount of strength in their internal operations and it is important for the organization to have properly skilled and trained employees which are able to effectively implement the Tools and techniques of operations management in the operations of the organization.
They are different factors of operational management in any organization. The basic tool for operations management is project management. Most of the project managers spend a significant amount of time in order to plan related to the product line. Project management is implemented at every stage of the organization from acquiring the raw material until making the finished products.
Operations management also help the organization and the management to formulate effective budgets and also help to formulate effective strategic plans including the marketing plan, overhead related expenses, salaries and supply fees and other related factors in the organization. It is important for the managers to formulate a timeline for the completion of the project so that the managers are able to complete the project within the given deadline and are able to make the project a success for the organization. This all can be made possible with the effective implementation of project management, which is one of the most significant tools of operations management.
Another significant tool for operations management is quality control and inspection. Quality control and inspection are conducted on regular basis in order to make sure that the products or services, which are being produced, are of high quality. This means that quality management helps the organization to make sure that quality oriented products are delivered to customers in order to enhance the satisfaction level of the customers. Quality control and inspection also help the organization to make sure that the operations of the organization are according to the formulated objectives and whether they are on track or not.
Another significant role of operations management is equipment maintenance policies. It is important to frequently maintain the equipment in the production department in order to make sure that the operational capacity is being completely utilized and in order to effectively enhance the efficiency level of the production department. It will help the organization to keep the equipment and good condition, which includes computers, hardware and other related equipment, which are important for the operations of the organization.
The policies when implemented in the business management are then should be maintained by the employees and the HR management of the organization as well. The operational management policies when made then they should be considered very much keenly, they must be followed regularly among the organization employees, and all the essential departments related top them. The management is that department that actually focuses on the growth and development of the business in terms of exceeding good reputation and well strategies implementation as well. The operation management is a vast field in an organization in terms of maintaining a good working atmosphere in the organization.
Operation management is an important or compulsory tool to get success in the business because it is related to make and control all the operations in an organization that are related to the organizations rapid growth and complete success as well. Business management is the most important factor of the organization’s maintenance if any organization cannot manages its businesses according to the proper criteria then it became impossible for them to get good reputation in the market. Management is actually that branch of the business that manages the system and working of the organization so that it operations runs smoothly and well.
- Brown, E. (n.d.). Know How Important is Operation Management For Business. Retrieved from https://www.munplanet.com/articles/business-management/know-how-important-is-operation-management-for-business
- get smarter. (2017). Why is operations an important function in a business? Retrieved 04 03, 2018, from getting smarter: https://www.getsmarter.com/career-advice/industry-advice/operations-management-important-faqs
- com. (2018, January 3). Importance of operations management. Retrieved from http://www.mitsde.com/Blog/importance-of-operations-management/
- com. (2016, December 28). Importance Of Operations Management. Retrieved from https://www.ukessays.com/essays/business/importance-of-operations-management.php