What Is Operations Management And What Are Its Challenges & Roles In Business Operations

The answer of this question is discussed below:

What Is Operations Management (OM)?

It means the transformation process in which resources (inputs), which include human being, capital, material, equipment & tool, technology and information, are converted into outputs (finished goods & services) by utilizing various processes, procedures, work activities, etc., in order to achieve organizational goals & objectives efficiently and effectively. For example, if a company produces chairs by utilizing labors, material and capital through a manufacturing process, then it is known as operations management created by operational manager.

Who Is Operations Manager?

The person who does the work of operations management is called operations manager. His main task is to operate business operations efficiently and effective to meet targets on time. He works both on field and office work tasks.

My Personal Opinion About Operations Manager

Operations manager is a front-line manager who responsibility is to oversee, coordinate and control the field works to ensure proper working performance of the work activities to meet set targets on time. His main role is to manage business operations by utilizing resources efficiently and effectively to provide benefits to the company in the form of higher profits while providing quality products at minimum cost to customers in the market.

Challenges For Operations Management

In today dynamic environment, the main challenges for operation management are:

1. To utilize updated and latest technology to improve productivity level and bring efficiency in utilizing resources to produce at a large scale with minimum cost while maintaining the quality.

2. To make possible the smooth running of the business operations, even in case of uncertainty, to meet daily targets.

Role of OM

Operations management plays the following important roles:

1. Manufacturing & Services

The success of a company depends upon how successfully it manages its operations to produce quality goods & services with minimum cost. The process of transferring inputs into outputs are clearly defined and set out in the manufacturing department in order to manage working process related to the transformation of inputs into outputs with the utilization of minimum cost.

2. Managing Productivity

If a company produces more in a short period of time while maintaining the quality of products, then it gets more productivity as the company manages the productivity well through proper management of operations.

It is only possible when the labor are skillful, latest and modern technology are used resulting in the improved productivity. For example, if a company uses advanced and latest technology to improve its productivity, then it is said that its operations manager efficiently and effectively converts resources (inputs) into outputs (quality products such as chairs, tables, etc.).

By improving productivity at less time within minimum cost enable the company to earn huge profits and it has potential to offer competitive prices to its customers in order to gain competitive edge over its competitors.

A manager should make long-term future plan to improve productivity. He can divide his long-term plan into sub-goals which should follow and made in pursuance and achievement of long-term plan. For example, if he wants to maximize the production level for 5 years then he has to set sub-goals by hiring quality workers, acquire latest technology equipment, adopt specialized process, etc., to achieve long-term plan of achieving production level in five years. During 5 years, he can assign tasks to specialized workers & employees to complete the projects which helps in improving productivity.

Improved productivity is not only beneficial for the organization but also for the economic development of the country. Workers & employees  get better wages & salaries along with incentives & bonuses.

3. Strategic Role of OM

If the company provides quality goods and services at minimum cost then it can compete successfully with its competitors in the market. The operation manager manages business operations efficiently and effectively to compete in the market and gain competitive advantage over company's competitors and ultimately achieves goals of the organization. For example, if a company uses modern and advanced technology to manufacture quality furniture at minimum cost can gain competitive advantage over its competitors in the industry.

Use of latest and advanced IT technology, advanced and modern equipment & machines helps in improving quality production of the business which definitely helps the company in gaining competitive advantage over prevailing competitors in the market.

Skillful and professional workers and employees are hired to enable the company to produce quality products & services to its customers in order to satisfy them and attract many new customers and ultimately gains competitor edge over competitors in the market.

Conclusion

So, we can say that operations management is the transformation process through which inputs are converted into outputs. It helps us in business operations to achieve organizational goals & objectives effectively.