Operations management is the practice of overseeing business processes and practices to ensure efficiency and maximize profits. It involves the use of personnel resources, materials, equipment, and technology to acquire, develop, and deliver products to customers based on their needs and the company's skills. This discipline focuses on formulating strategies and taking measures to optimize production and supply chain performance. An operations management professional must understand local and global trends, customer demand, and the resources available for production.
Strategy is a broad function of operations management that can include operational planning, monitoring, and analysis. To be an effective operations manager, one must be able to understand the processes that are essential to what a company does and get them to flow and work together smoothly. Operations management problems arise from many places, but the most common challenge is the inefficient allocation of time caused by factors such as labor shortages. NetSuite bridges the gap between operational intelligence and business results with real-time visibility and reporting and customizable operations dashboards that bring clarity and context to operations management.
Operations management addresses the procurement of materials and the use of labor in a timely and cost-effective manner to meet customer expectations. If you're a small company, the human resources team may share some tasks with the operations team, such as financial planning. The responsibilities of a chief operating officer include the general direction of the company's operations, financial planning, and the allocation of resources for specific projects and service offerings. To excel in this role, devise solid conflict management strategies.
In smaller companies, the operations manager's responsibilities may include supply chain functions, such as managing supply and delivery processes and systems. Business Process Reengineering (BPR) is an effective way to improve return on investment, reduce operating costs, increase production capacity, and improve service capabilities. Unfortunately, small and medium-sized businesses may lack interdisciplinary leadership and responsibility in managing operations. While there is no single path to achieving efficient operations, organizations and individuals have found effective ways to improve the management of modern operations.