Operation Management

• Operation Management is a business area that implements practices ensuring the conversion of inputs into goods and services with maximum efficiency.
• The goal of Operation Management is to increase an organization’s income by improving its operations and maximizing the use of existing resources.
• Operation Management includes the provision and delivery of excellent customer service.
• Management of the operations department is essential to achieve optimal utilization of resources.
• It ensures that goods or services of appropriate specification and cost are produced within the stipulated time.
• An organization will achieve good rates of profit and adequate levels of customer satisfaction when all these coincide.
• Forecasting is an attempt at predicting the future with the help of systematic analysis and scientific methods.
• Capacity measures the rate of the production capability of a facility.
• One of the most important operation management responsibilities is finding out the kind and quantity of capacity needed and the time by which it needs to be produced.
• It involves assessing the facility’s current capacity, forecasting future needs, identifying and analyzing possible resources to fulfill those needs, evaluating alternative resources, and selecting the best among them.
• It is important to determine a location facility of the plant that can ensure maximum operating efficiency.
• The selection of facilities is based on the easy and regular supply of labor, resources, and raw materials.
• Factors like nearness to the market, power availability, transportation facilities, climate suitability, and government rules are also considered.
• An ideal location contributes to an organization’s smooth working, the opposite of which will hinder its growth.
• A good layout plans for placement of machines, pieces of equipment, utilities, service areas, storage areas, and arrangement of other facilities.
• Successful execution of an organization’s operations includes cordial and efficient workflow between various departments such as sales, production, and accounting.
• Organization and Productivity are two key drivers of being an operations manager, and the work often requires versatility and innovation.
• Technical expertise in areas such as production automation, data entry, budget tracking, and design is a skill of an effective operations manager.
• Organizational ability and attention to detail to include keeping track of project files, employee reports, budgets, schedules, and other details related to company processes is a skill of an effective operations manager.
• Motivational prowess in the form of strong leadership skills that provide the expertise to motivate others, inspire ideas, and foster a supportive and diverse team is a skill of an effective operations manager.
• Analytical aptitude including skill in risk analysis and mitigation when initiating new projects is a skill of an effective operations manager.
• Decision-making proficiency, especially under stress when there is very little time to assess all factors is a skill of an effective operations manager.
• Ability to maintain quality standards, including as they relate to raw materials, machinery, manufacturing procedures, packaging, delivery processes, and the finished product is a skill of an effective operations manager.
• In simple terms, operation management is the process of employing business practices designed to achieve maximum efficiency as a means to achieve maximum profitability.
• Within the process, operation managers utilize organization and productivity to achieve their primary goals.
• Balancing the efficient use of resources, including staff, materials, equipment, and technology, is key to a successful process and to the success of the company.