What is Operations Management? Meaning, Importance, Functions and More

Production and manufacturing processes, as well as service delivery, are all part of operations management. In a business, operations management is vital because it aids in the efficient management, control, and monitoring of goods, services, and people. Here’s a look at the benefits, significance, and potential of enrolling in an Operations Management course online with Emeritus India.

What is Operations Management?

The management of company activities with the goal of increasing efficiency is known as operation management. It is a method of planning, organising, and overseeing a company’s operations in order to increase production. Operation management tries to reduce the cost of doing business by eliminating resource waste.

Functions of Operations Management

• Finance: Finance plays a crucial role in operations management. The operations manager should refrain from wasting money on ineffective projects. They must ensure that all of the company’s funds are put to good use in the production of meaningful items or services that meet consumer needs.
• Operations: Operation management is primarily concerned with the planning, organising, directing, and regulating of an organization’s everyday routine operations. The operation manager oversees all activities to ensure that they are carried out successfully and efficiently.
• Strategy – The formulation of strategy is the primary function of operations management. The development of plans and tactics aids the organisation in maximising its resources and gaining a competitive advantage over competitors.
• Maintaining Quality – Operations management should work to improve product quality. The manager should not jeopardise the quality of the items. They should concentrate on quality control and supervise all tasks. They must take measures to rectify any problems that are detected.

Importance of Operations Management

1. Aids in the attainment of objectives: Operations management plays an important part in achieving an organization’s pre-determined goals. It monitors the organization’s operations on a regular basis to verify that all actions are carried out according to plan.
2. Employee Productivity Increases: Operation management increases employee productivity. It reviews and assesses all of the company’s employees. Employees are trained and educated by the operations manager in order to improve their performance.
3. Optimal resource utilisation: Operation management focuses on making the most of the organization’s resources. Operation managers keep a careful eye on all activities and ensure that all resources are used effectively and not squandered.
4. Employee Motivation: Employee motivation is aided by operation management. Operation managers support all employees in carrying out their obligations and promote a more pleasant workplace. Employees are paid and rewarded based on their performance.

Scope of Operations Management

• Increased Productivity: Operation management plays a key part in boosting firm productivity. It supervises all aspects of manufacturing to ensure maximum efficiency. The operation manager is in charge of putting together a production schedule to carry out the tasks.
• Goals Achieved by Organizations: Every organisation works to attain its desired outcomes. Production activity management enables firms to efficiently implement their strategic plans in their operations. Operation management guarantees that all business operations are running smoothly.
• Improve Customer Satisfaction: Improving customer satisfaction is critical for any organisation looking to improve its customer connections. It assists them in keeping them for a long time.
• Improve Innovation: Operation management aids in the implementation of novel organisational improvements. All production planning decisions are made by operations managers after a thorough examination and analysis of current market conditions.

Nature of Operation Management

• Dynamic- The nature of operations management is dynamic. It evolves in response to market trends and demands.
• Transformational Process– The management of activities related with the conversion of raw materials into final products is known as transformational process management.
• Continuous Process– Management of operations is a continual process. Organizations use it to manage their activities as long as they are still in operation.
• Administration– Operation management is in charge of overseeing and controlling all of the company’s activities. It guarantees that all activities are running well and that no resources are being underutilised or misused.

You now know the importance, functions and scope of operations management. If you’re interested in learning more about operations or project management, these Emeritus India project management and operations management courses online will teach you everything you need to know.