There seems to be no doubt that operations management is one of the most important managerial practices in any organization. Evidently, operations management implies the administration and control of all business practices inside a company with an aim to optimize their efficiency. It means that an operations manager needs to know how all the processes in an organization function in order to find the best way to optimize the execution of tasks. Needless to say, that there are several areas of the operations manager responsibilities, which are essential for the business success of a company.
First, an operation manager is responsible for different aspects of the manufacturing process. For instance, he or she determines the sizes and locations of the plants and proposes the number of products for the further decade. In the service-oriented organizations, a manager takes care of the availability of necessary personnel.
Second, operations management requires the accurate control of the logistic system and supply chain. It seems fair to state that the profitability of a company depends on the minimization of costs. Therefore, the purchase of the cheapest raw materials and products provides a significant opportunity for an organization to improve financial indicators. Moreover, an operations manager controls the delivery and storage processes. The fact is that some companies lose money as a result of unnecessary purchases, thefts or damage to property. Accordingly, an operations manager has to prevent such cases and make everything possible to optimize the relations with the suppliers.
Finally, it is crucial for an operations manager to analyze the process of goods or services delivery. The fundamental aim of a manager is to ensure the high quality of products and the satisfaction of a client. An operations management also implies the administration of communication and IT networks. Obviously, the fundamental task of an operations manager is to improve the efficiency of all these processes rather than to control them.
Thus, all the above-mentioned areas of operations management are important for a company because competitive advantage significantly depends on the ability of a company to minimize costs and maximize profit. It becomes clear that operations management is a connecting link between all other forms of managerial activities.
It is essential to highlight that operations management varies from the manufacturing sector to the service one. The basic reason for it is connected with the focus of a company’s activities. For instance, a wedding agency does not need to produce something. The purpose of this company is to organize different specialists, such as photographer, florist, or designer to propose the optimal wedding solution for a couple.
On the other hand, the managers of a copper plant mostly take care of the manufacturing process, especially the working process. Consequently, an operations manager in the organization focused on services needs to pay more attention to the relations with clients, especially communication. The basic problems of the manufacturing sector are related to the optimization of technical aspects, such as the purchase of the best equipment and the control of the production schemes.
It is rational to assume that an operations manager in the service sector needs to possess good communication and team-building skills. In this situation, the task of a manager is mostly related to the relations with clients. The high level of satisfaction plays a big role in the success of an organization.
An operations manager in the manufacturing sector has to possess enough knowledge about all the technical aspects. At the same time, the qualitative administration of supply chain is crucial for a plant or factory. Nevertheless, operations management in both sectors requires an understanding of system analysis, which helps to schematize processes and find vulnerabilities.
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