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Operations management is a field that deals with the management of manufacturing activities of an organization related to producing goods and providing services. All the processes that are required to transform inputs to outputs or raw materials into final products are referred to as manufacturing activities. Manufacturing activities add value to an entity. The processes of operations management, planning, supervising and organizing enhances the profitability and efficiency of manufacturing operations. The objective of operations management is to use labour, resources, equipment and materials in an efficient way to meet the demands. To realize these goals key adjustments, need to the made while implementing operations management. Understanding the principles of operation management is vital to achieving the goals.
Reality: The focus of operations management should not be on some specific techniques and tools but the overall problem. No particular tool is able to give out a universal solution to all the problems encountered.
Organization: Everything within the operation management department of a production facility is interconnected. Each of the elements of operations management must be predictable and consistent for operations to meet its objective of profit.
Fundamentals: Complying with basic fundamentals is essential as it forms the key to production success. The desired goals can be achieved by ensuring the accuracy of data, general tasks and BOMs. In operations management, 80% of the progress is linked with maintaining current processes, while 20% is related to employing new techniques to the existing methods.
Accountability: An operations management must be accountable, as operation managers need to set rules and metrics along with checking that the rules are followed, and goals are achieved. These functions of operations management make the employees accountable for meeting the goals by putting in adequate efforts.
Variance: Variance of demand signals can create various problems for the manufacturing facility. If the variance in processes and techniques is put in place, it will foster creativity and obtain a better response.
Causality: Problems and symptoms are always very similar. So, in order to get rid of the actual problem forever, the underlying root causes of the problem must be identified and eliminated.
Managed position: Passionate employees tend to be the most valuable asset of any organization, forming the key to success and long-term performance of a company. Motivated managers can instil a sense of dedication and passion in the employees and help the company move towards success.
Humility: Its significant for operation managers to be down to earth, view themselves as ordinary people who can also make mistakes and do not know everything as no one would like to work with an aggressive individual who believes that they know everything.
Success: Operation managers must determine the parameters of success very clearly so that everything can work following it to achieve the targets. For a company to achieve success, the interest and needs of the customers must always be considered and must try to keep the customers happy so that they can be loyal to the company. The four basic requirements of customers that increase their level of satisfaction are good quality, the right price, correct quantity, and right time.
Change: All the employees of the company must be able to adapt to changes in the market, including understanding the target clients, customers and their needs. As manufacturing operations are availed with new solutions and theories, so being open to change can maintain the stability of operations in the long run.
Selection and design: Right kind and design of products are vital for the success of a company. Wrong product selection or poor design can make the operations of a company non-competitive and ineffective. Therefore, products and services must be selected after a detailed evaluation while aligning with the companys objectives. Value engineering might also be employed in creating good designs that are suitable with minimum cost.
Selecting and planning the process: Conversion system selection is as vital as the selection of products and design. Process selection includes selecting equipment, technology, material handling systems, machines, automation and mechanization. Process planning deals with detailing the processes if conversion is required.
Plant location: The decisions of plant location are strategic, and once the plant is built at a site, it becomes immobile and can be moved only with a considerable cost, which will also interrupt the production. Although the production of a company is not determined by its location, but it affects the efficiency of employees. Therefore, selecting the right place is also vital to minimize the cost of transportation.
Facilities layout and handling of materials: To facilitate the flow of materials and processing of products efficiently in the shortest time period, the layout of a plant is very vital, which is concerned with the location of one department to another. A good layout is also beneficial as it minimizes the handling cost of materials, eliminates congestion and delays, enhances coordination and provides good housekeeping.
Capacity planning: Acquisition and determination of productive resources are concerned with capacity planning in order to ensure that the productivity of products meets the demands. The capacity design also influences the production system performance in terms of both customer service and resource productivity. Excess capacity leads to low productivity of resources, while inadequate capacity results in poor customer service.
Production planning and control: Production planning refers to the process of specifying the process of production to obtain the desired outcome in the shortest possible time at minimum cost while maintaining the quality standards. Control refers to the process of determining that the manufacturing process takes plan in the same manner described in the plan.
Controlling Inventory: Inventory control refers to the process of determining the optimal levels of raw materials, parts, tools, components, including finished goods, supplies and spares, in order to ensure the availability with the least expenditure.
Assurance and quality control: Quality tends to be the most essential aspect of production; operation managers must ensure that the services and products produced by the company align to the quality standards with minimum expenditure. The components of a complete quality assurance system include inspection of sub-contracted and purchased parts, setting up the quality standards, controlling the quality during production and examination of final products.
Work-study: Work-study deals with improving the efficiency of existing jobs and maximizing the productivity in new job designs. Work measurement and method study are the two principal elements of work-study.
Replacement and maintenance: It involves selecting the policy of optimal maintenance to enhance the availability of equipment with minimum maintenance and repair cost. Preventive maintenance takes care of some critical functions, including preventive inspection, periodic cleaning, planned replacement of parts, planned lubrication, conditioned monitoring of the machines and equipment.
Controlling and reducing the cost: Effective operations management needs to ensure that production requires minimum expenditure by reducing the cost and controlling the cost.
Product Design: Product design deals with producing new products that can be sold to the customers by expanding the current idea in the process or developing new ideas. It is the responsibility of an operation manager to ensure that the product meets the demand of the customers while aligning to the trends of the current market since customers are more concerned with quality than quantity.
Scheduling: Scheduling refers to the process of arranging, monitoring and enhancing the work as well as workloads in a manufacturing process. Scheduling is utilized to allocate the best plant and machinery, plan the process of production, plan human resources, and purchase raw materials.
Forecasting and setting goals: Forecasting refers to making predictions of the future events according to the past data available. Assessing the demands of the consumers for the products of the company is the primary function of the operation manager. Depending on the past and present data on the consumption of the product, the operations manager determines the future trends of consumption and the volume of the product that is required to meet the demands.
Controlling data challenges: Efficiency and effectiveness are the two kinds of data analysis that are employed by the operation manager to carry out their functions of planning, decision making and strategic marketing, which are dependent on relevant, high quality and reliable data. The data is generally analyzed by employing several software and advanced systems.
Delivery Management: The operation manager also acts as an in charge of the delivery process, managing that the goods are delivered to the customers on time. They also follow up with the customer to make sure that the product delivered is the same as what the customers have ordered and the product is able to meet their needs. The operation manager receives any negative feedback about the product and directs it to the relevant department.
Supply chain management: Managing the entire process of production from obtaining raw materials to producing the final products, shipping, and delivery of the product is referred to as supply chain management. The supply chain process is managed by the operation manager by controlling the inventory management, production, distribution, and sales. Managing the supply chain process properly will make the production process efficient, minimize the overhead cost, and deliver the products to consumers on time.
Social responsibility: The operation management team of a company also deals with handling the environment and communities that are affected by the operations of a company.
HR management: For the success of any company, the employees must be handed in an efficient manner as they form the backbone of any organization. A company will not be able to carry out its function of production and will cease without employees.
An operation manager carries forward several functions, including improving the performance, formulating new strategies and ensuring that quality services and goods are delivered. Since an operation manager is expected to carry out numerous tasks, so they must be equipped with the right skills and knowledge that will lead the business towards growth. These skills include planning, delegation, excellent communication, in-depth knowledge, time management, leadership, active listening, problem-solving, teamwork, stress tolerance, and decision making.
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