Operations management is an essential part of any organization, regardless of its size, industry, or whether it is services or manufacturing. It ensures that organizations meet their objectives and helps maximize profitability. Operations management involves managing the information, human resources, equipment, technology, and other resources needed to produce goods and services. It is the management of the planning, organization and supervision of the production of goods and services.
One sure way to achieve operational excellence is by streamlining business processes. Automating key business processes allows companies to save costs and time, and improve business efficiency and productivity. The decision to streamline your business should be made after a proper analysis of existing processes and future business growth. Encouraging effective collaboration to increase efficiency, collecting the right data for better decision making, improving employee satisfaction with recognition and rewards, and encouraging frequent but short breaks to build focus and complete tasks with a fresh look are some of the best practices in process automation that guide companies on how to streamline work processes and improve workflow. The objective of operations management is to help maximize efficiency within an organization, increase the productivity of the organization, increase profits and reduce costs, and ensure the production and delivery of high-quality products or services that are adapted to consumer needs. The history of operations management is long because it goes back to ancient times.
Its origins date back to 5000 BC. C., when Sumerian priests created a system that helped them record inventories, taxes, loans, and other business transactions. In 1883, Frederick Taylor timed tasks for complex jobs using the stopwatch method. This method became important for studying productivity and efficiency. Fast forward to 1912, where Frank and Lillian Gilbert took this a little further.
They laid the foundations for a system called predetermined motion time systems (PMTS). This helped people predict how long it would take to complete tasks. Thanks to this concept and how well it worked, managing production to improve productivity became a hot topic among manufacturers. From the 1950s to the 1960s, it became an independent discipline, giving life to other concepts such as Taylorism, production planning, inventory control, etc. At the time, it was called “production management” because it was mainly used in manufacturing. As the world developed and service-based businesses began to prosper, people began to integrate the many functions of manufacturing, including operations management, into services.
For example, in 1973, FedEx began delivering packages the next day. And today, service-based companies such as Amazon offer same-day delivery of orders. Once service-based companies started using product management principles to plan and organize their processes, the name changed to operations management. The role of operations management is essential in every organization. It's no surprise that some companies have several operations employees and allocate a huge budget to that department. Proper operations management ensures that the products manufactured and the services provided are top notch.
The operations management unit examines the durability and reliability of each product before delivering it to consumers. This unit also ensures that there are established processes that ensure that service-based companies offer first-rate services to their customers. One way to ensure customer satisfaction is by delivering quality products or services. The operations manager's job is to ensure that the product is of high quality and meets the needs of consumers. Operations management also ensures that customers are treated well.
With all this in place, customer satisfaction is guaranteed. Operations management offers space for maximum productivity. It ensures that all resources (from raw materials to human resources) are properly used during the production process. The result of this is greater productivity. The only way to ensure productivity is through effective operations management. Effective operations management gives you a competitive advantage over your competitors.
If operations management is carried out successfully, you will achieve better results which means that your products and services will be better adapted to the market. This makes it possible for your organization to stand out from the competition and gain new customers. The cost of producing products or providing services will be significantly reduced when productivity, quality product production, and customer satisfaction are properly maximized. Lowering the cost of operations in turn leads to an increase in revenues as well as waste reduction. It also leads to technological advances within an organization ensuring that processes work properly and guaranteeing profitability. There are two specific functions in operations management: The chief operating officer (COO) who is one of the highest-ranking executive staff members in an organization; and the operations manager who ensures that operations within an organization are carried out effectively. If you want to learn more about how operations management was created save this slide show for later reading; it will guide you through the historical evolution of operations management.
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