The Business Operations Management Process is the base of all kinds of organizations. While it’s necessary for multinationals, it’s also significant for startups, small-scale businesses and sole proprietorship.
Being the core necessity for resource optimization, Operations Management is applicable in manufacturing and also the service organizations.
In any case, Operations involve several entities such as stakeholders, distributors, suppliers, manufacturers, retailers or customers.
When do we need the Business Operations Management Process?
Let us start with where all we need operations. Imagine going to Walmart and not getting, what we went to the store for. It would be so frustrating to follow up on a loan application that has been pending for years. Even after paying the same cost, the service or products would not be available on time. It’s no surprise, that the customers would have a negative buying experience.
Customers complain about not getting the product, they want. Yet, there are piles of inventory on the shelves of retail outlets. That’s when Operations kick in.
What is Operations Management?
Operations Management is a systematic approach that handles multiple issues during the project cycle, for products or services.
Thus, Planning, Implementation, and Supervision of operations that transform resources into a specific outcome.
What is the focus?
In a simple language, the Business Operations Management Process focuses on converting a set of inputs into a productive output.
- In order to provide service, a lawyer prepares all the legal documents for the client. Hence the process of preparing the documents is the input and service to the client is the output. Operations Management ensures timely and precise documentation in order to meet the client’s deadlines
- A Manufacturing plant procures raw material and fabricates them into the end products. The engineering services and the raw material for the fabrication are the inputs, whereas the end product is the output. Operations Management focuses on controlling the engineering process to ensure a quality product within the project deadlines.
Importance of Operations Management
1. Goal Oriented: In addition to providing competitive products and services, Operations Management also focuses on executing the corporate strategies. Let’s say an XYZ company’s strategy is to provide economic computer solutions. Operations Planning enables manufacturing a low-cost laptop with all the key features. The XYZ company will use an AMD processor instead of Intel so that it serves the purpose at a lower cost.
2. The Point of Difference: Operations Management controls and analyzes all the operations, required for flawless results. Moreover, it adds an extra value for the business to have a competitive advantage over others. For instance, an aircraft company would prefer Boeing over any other manufacturers because of it’s higher quality standards and regulations.
3. Process Improvement: Operations Management ensures a sustained delivery of an efficient operation. As a matter of fact, It helps us to improve day by day compared to previous performances. For example, XYZ Manufacturing was unable to deliver on time because of unexpected defects during production. With Operations Planning, the company was able to improve its future productions by detecting the potential defects in advance.
4. Systematic: Above all, there will be no systematic predictions without the Business Operations Management Process.The outcomes might be outstanding one day and a complete failure the next day. To illustrate, A manufacturing business unit may be able to assemble 100 products one day and might be very slow the next day if the lead employee doesn’t show up. With Operations Planning, a unit can balance the manufacturing process among the employees and other resources. There is a planned backup that takes over if something collapses.
Operations Management can be complex or easy depending on the flow, variety, and volume of the production. It will be more complex for a gourmet restaurant offering a wide range of variety compared to a fast food chain that offers ready to make food with high volume.
For detailed information on the scope of Operations Management and how to make it more productive, I recommend The Goal: A Process of Ongoing Improvement – 30th Anniversary edition audible which is available for free on Amazon.
In conclusion, the Business Operations Management Process is essential for all kinds of businesses. There is no improvement or productivity without operations.
What are your thoughts on Operations Management? How to handle unexpected errors? How can we ensure optimization of resources for different production methods? Drop us a comment!