What is operations management?
What is operations management?
Operations management is a key area within any organisation. It plays a key role in keeping supply chains operational in today’s challenging environment. Its purpose is to manage products, processes, services, within the supply chain. Successful operations management ensures your finished goods or services are delivered on time and in full, to meet customer needs.
Operations management within a manufacturing facility will oversee both the manufacturing and warehousing facility. They are there to manage accurate levels of inventory and monitor the use of space for both inbound goods and outbound finished goods. So, what skills do operation managers need? Operation managers need to be skilled at building relationships with key stakeholders, coordinating with internal business operations and keeping up to date with lean and agile management techniques.
Five tips for operations management success
What does successful operations management look like? Here are a few pointers that will guide you on the path to success:
- Focus on the right business metrics with the customer in mind
- Use data to identify key problems and measure effectiveness in the supply chain
- Stay up to date with the latest technology and automation tools
- Continually develop and refine your business processes
- Deliver updates to the business and key stakeholder groups
What is the difference between operations management and supply chain management?
Operations management and supply chain management are both heavily dependent on one another. However, they do both have clear differences. Operations management sits within the supply chain management process. Operations management oversees activities such as the manufacturing process, warehousing, forecasting, and planning. However, these activities can differ from organisation to organisation and from an organisation that produces goods vs one that provides a service.
Supply chain management overseas all activities from the raw materials through to the finished goods or services being supplied to the consumer. Without supply chain management manging the products produced, operations management wouldn’t have any products to oversee.
Key roles and responsibilities
Both operations management and supply chain management add value by implementing efficient processes to drive profits. But what exactly are their roles and responsibilities?
Operations management
- Coordinates with internal operations about how products or services are developed
- Focuses on the efficient and effective functioning of a business
- Maintenance and analysis of the production systems
- Building up a rapport with organisations stakeholders
- Familiar with different technology applications
- Forecast sales and works to improve responsiveness
- Ensures that the demands of customers are fulfilled
- Planning and managing the day-to-day operations
Supply chain management
- Collection and delivery of materials
- Coordinates with other areas in the supply chain process
- Risk evaluation and security
- Looks for ways to reduce cost
- Responds quickly to market innovation and trends
- Evaluates suppliers frequently
- Negotiates contracts
These business operations are there to ensure that finished goods or services are delivered on time and in full to meet customer needs.
Demand management
Learn how the demand management process works and the role it plays within your organisation
Find out more about Demand Management
Operations management key themes
- descriptionInventory Types & Costs
- descriptionDemand forecasting
- descriptionSCOR Model
- descriptionPareto analysis
- descriptionBullwhip effect
- descriptionDemand management
- descriptionDemand management strategy
- descriptionEconomic order quantity
- descriptionCapacity requirements planning
- descriptionMaterial requirements planning
- descriptionKPIs
- descriptionInventory Types & Costs
- descriptionDemand forecasting
- descriptionSCOR Model
- descriptionPareto analysis
- descriptionBullwhip effect
- descriptionDemand management
- descriptionDemand management strategy
- descriptionEconomic order quantity
- descriptionCapacity requirements planning
- descriptionMaterial requirements planning
- descriptionKPIs
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