Operations Management and its Strategic Roles in Business

Home Articles Operations Management and its Strategic Roles in Business

The operations management is the department of each organization which is responsible for processing the inputs to create the outputs in the form of products or services. The operations manager have to take all critical decisions which are associated with various processes of operations management. The managers have to bring all the resources together so that they can achieve the target which they have set as the production plan. It is highly critical for the organizations that they take good care about the optimum use of resources, the capacity of the production system and storage, and the knowledge which is available to the company in the form of its human capital. The organizations must be able to produce the goods or services when their demand arises. The operations managers also have to control various aspects of the production management such as the control over the manufacturing and other related costs, the inventory control and the quality control.

  • The requirement of resources

The resources are those inputs which are required to initiate and carry out the production process. Main resources which are needed for the operations management are the human capital, the raw material and the money or capital required to buy the material and equipment and to keep the operations going. With the advancements in technology, the human factor is more involved in the 0lanjing, and the automated machines or equipment usually do forecasting processes and the work.

The operations managers can multiply the effectiveness of the processes by using the knowledge base available with their employees. If we talk about materials which us to be used will include the raw material and various types of machinery, plant equipment, supplies needed for the production and other inventories. The organizations can use the capital in the form of stocks, bonds or with the help of taxes and other contributions. These all resources are vital assets for any organizations, and with the help of them, the companies create profits for themselves.

  • The requirement of systems

There are set objectives for which the production managers work, and these goals are usually defined by the higher management officials, To attain the right results the whole process of operations management has to have a standardized system. We can describe the operation or production system as an arrangement of components which are specifically designed to accomplish the set target. If we speak about the business, then it is also an as-sub system of the central social system. In the same manner, there are many subsystems of the company also which include production system, personnel, engineering and infrastructure, the financial management and marketing etc.

How well a system functions entirely depends upon what approach the officials concerned to take the decisions adopted. Designing the system is a significant aspect of the operations management, and therefore the productivity is highly dependent on the arrangement of various components of the processes. There must be a proper relationship and flow between all the stages of the process so that maximum efficiency can be achieved. To achieve the targets in a planned way the managers have to control various aspects accordingly.

The production system is the primary function of the operations management when the manufacturing of the products is concerned. It is a systematic approach which takes into account different variables such as the resources, the production or transformation process and the creation of the outputs. The raw material gets changed into the valuable goods and services by going through some procedures. You can know about this concept in more detail in the article written especially on it that is “The Concepts of the Production System and its Objectives

  • Activities for transformation and value addition

The main objective for which different procedures and supplies are combined and that too in controlled conditions is to transform the raw material and the inputs into a processed good or service. The process of transformation can be in the form of a technical procedure, any chemical reaction or physical change of the material. The measurement with which the effectiveness of the systems can be assessed is called as the productivity of the process.

  • The strategic roles and objectives of operation management

The primary goal of any business is to attain high market share and gaining profits. When the firms assess the market and its trends, then they have to take decisions according to that so that they can establish their mark in the industry. There are two strategic objectives of operations management which are discussed as follows:

  • The objective of customer service

Any organization can attain its strategic goals only when it produces the products and services are appreciated and used by the customers. Therefore the operations managers have to take decisions in such a way which supports and achieves the strategic goals of the organization. The customer service is considered as the most critical aspect of any business, and the decisions are taken for the carrying out the production process is highly essential to accomplish the targets. There are three. Significant aspects of the customer service aspect of operation management and that are the specification of the features, the cost of the products and the timing of its delivery. When we talk about the principal functions of the customer service which have to be considered by the operations managers, there are four fundamental functions, and they are written as below:

1. The Manufacturing function

This is the function of production of those products or services which are specified by the customers. It is highly essential to decide upon the features of the products or service es according to the demand.

2. The transportation function

Transporting the produced good or service at the right time when it is promised to the customers is also highly essential to increase the credibility of the firm. It also helps to build a long-lasting, profitable relationship with the customers.

3. The supply function

The supply of the given goods so that the customers can get the product or service at the scheduled time. The delay in delivery is also a consideration which should be taken into account by the operations management so that proper measures should be considered for timely supply and then on-time delivery.

4. The service function

The service delivery or the after sales service if the customer gets any problem with the functioning with the product is a highly essential aspect of the operating system, and it also connects the process with the strategic goals of retaining the customer for as long as possible. This can be done when the customers feel that they have received the added value for the money they have spent on purchasing the good or service.

  • The objective of resource utilization

The other principal strategic objective of the operations management is to utilize the resources in an optimum manner so that the organization can satisfy the needs and demands of the customers. It is essential to have adequate operations in place if the companies want to attain excellent customer service. If the companies do not utilize their resources efficiently and do not provide expected customer service to the consumers, then it can lead to the operational and commercial failure. Therefore the main goal of the operations management is to utilize all available resources to the optimum level. This also includes the minimum waste of the resources so that the firm can accomplish an effect in all the procedures. There are different extents on which the operations department can measure the effectiveness of the resource utilization, and they are the time used to compete a [process, the adequate use of the space available in the manufacturing or working space and the levels of the activities required for the p
rocess optimization.

It is mandatory that the organizations achieve a satisfactory performance in both of these aspects simultaneously. If they overlook even one of the objective, then they cannot climb the ladder of success. Moreover, these both functions are highly interrelated with one another, and therefore failure in one can have a significant effect on another. Thus it becomes the utmost responsibility of the operations manager to tackle these activities efficiently so that there arises no major conflict in both functions. The job of the operations manger is to create a balance in both these aspects to accomplish the short-term and long-term strategic goals of the company.

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