Role and Importance of Operations Management in an Organization

Operations Management is very important for managing large firms and running them successfully. Operation management is mainly related to production of goods and services in an organisation. The main purpose of the operations management is to run the business operations successfully, smoothly and effectively by using the minimum resources and meeting customer expectations. Thus we can say that operations management is the process of converting minimum input like raw materials, labour to produce maximum output like products, goods and services. Operations Management is very crucial factor in order to increase company’s profit. Operations management is not only responsible for producing goods but also take control of distribution of services.

Operations management plays a very crucial role in organisations as they produce professional managers which are capable of achieving organisation’s strategic goals in a defined period of time. Operations management is the heart of any organization as it controls the whole operation system of the organization. Operations management handles issues like design, operation, and maintenance and improvement of the systems used to produce company’s vital products and services. Operations management has clear management responsibilities like in marketing and finance. Operations management is very necessary in an organisation to manage the activities. With the help of Operations management an organisation is able to make good use of their resources like human labor and inputs are used as required. Operations management helps an organization to achieve its main goal of making profit and maximizing its shareholders through its activities. Cost of production is reduced to ensure that tangible and intangible assets are not over stretched or wasted in an organisation. Organisations make good use of its product and services management through Operations management. Product management includes a wide range of activities starting from the point when a new idea for the product is developed to eventually provide customer support to those who have purchased the product. Every organisation conducts product management no matter it is done intentionally or unintentionally.

Another important aspect of Operations management is quality management. Every organisation is very much concerned about the products which are manufactured or developed for the customers in the market. Quality management is very important to have efficient operations management, mainly if it is for continuous improvement in order to go with the consumers taste and preferences. Lately benchmarking and quality management, outsourcing and reengineering has taken operations management to an advanced level to produce high quality. Adoption of reengineering and benchmarking by the organisation helps them to be a leader in their category of products in the market. Benchmarking is considered as the best internal auditing process which the company uses to identify its weaknesses and then converting them into strength in order to increase its customers in the market.

One cannot think of Operations management in an organisation without Management control and Coordinating function. Management control and coordination includes different types of activities to make sure that the company’s goals are constantly being met in an effective and efficient way. Organizations mainly make use of organizational coordination and control in order to adopt a systematic approach to figure out if it is actually doing what it wanted to be doing or not. Some of the major approaches to the company’s organizational control and coordination include product evaluation, product distribution, advertising and promotion, sales and service and product development. Organizations use advertisements as a most important instrument to reach the customer and reorient the awareness of customers about its products. In this fast expanding and competitive marketplace, the company make certain that its products and services are significantly in the minds of their customers and clients. This takes place as a result of ongoing advertising and promotion by the organization. Facilities management is also a necessary function and is of great importance in operations management. Effective operations management in the company’s activities highly depends on a great deal of effective management of facilities, such as buildings, computer systems, signage, lighting and plants and machinery. In a situation of high demand which could call for higher or mass production, facilities needs to be managed in producing large quantities of products which must be standardized to meet the market demand at specific period. Well managed facilities like plants and machinery in the company help in production speed, lower per unit cost, ease of manufacture and control and the efficiency in the company’s production process

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