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OPERATIONS MANAGEMENT:

        The history of production and operation system began around 5000 B.C when Sumerian priests developed the system of recording inventories, loans, taxes and other business transactions. Next primary application of operation system occurred in 4000 B.C when Egyptians started using planning, organisation, and control in large projects. The present stage of the operations management has gone through a large number of steps to reach the current formidable stage. The roots of operations management can be easily linked to the concept of division of labour.

DEFINITION

Operations management is termed as the administration of business practices which is multidisciplinary, to generate the top level of efficiency possible within a company which deals with converting materials and labour into goods and services as effectively as possible for maximum profits. It manages to develop and deliver products to clients based on client requirements and the abilities of the company.  Its team attempts to balance the expenditures with revenue to achieve the possible net operating profit. It involves the planning, scheduling and control of activities that transform inputs into finished goods and services. Understanding various processes within a company, coordination and development of new procedures while reevaluating current structures, versatility & productivity are the ideal traits that a manager handling operations must possess. This ensures maximum productivity and minimum costs. It not only increases productivity and reduce costs, but operations management also helps in understanding product selection & design, process section & planning, location facilities, layout & material handling facilities and capacity planning.

THE STUDY OF OPERATIONS MANAGEMENT INVOLVES:

  • Process design: This process involves figuring out the exact steps to be carried out so that the organisation meets its business goals.
  • Standard management: This process helps to create &optimise budgets, scheduling equipment maintenance, ensuring that employees follow standard procedures, etc.
  • Process improvement and optimisation: It involves continuously checking of the processes & make sure all the methods are useful as they can be.

IMPORTANCE OF STUDYING OF OPERATIONS MANAGEMENT

The organisation can't just rely on their employees to do work right- it requires standardised procedures to assure that everything is as efficient as possible. If done appropriately, Operations management can lead to:

  • Better output: The operations manager optimises& improves processes that have a massive impact on product or service, which leads to higher output, lower defect rates, and lower costs.
  • Competitive advantage: Better product & service allows the organisation to stand out from the competition.
  • Higher profits: As a combination of the first two, organisation ends up improving the company's productivity thus increasing the profits.

Operations management involves knowing a lot of different things, from finance to HR. Knowing process management will make operations significantly easier. Whereas, there are a lot of approaches. The following four are the most popular:

BUSINESS PROCESS MANAGEMENT :

Business process management is the process of constantly analysing, improving and automating the processes in an organisation. It needs to be on a constant lookout for potential improvements.

BPM lifecycle consists of the following steps:

  • Design
  • Modelling
  • Analysis
  • Monitoring
  • Improving and automating

BUSINESS PROCESS REENGINEERING:

Sometimes upgrading a process is not just enough for improving the efficiency, in that case, it is re-engineered. Meaning recreating a process from scratch. BPR is a process of recreating a business process with a goal of improving product quality, and reduce costs. It includes the analysis of company workflows, finding processes sub-par or inefficient, and finding out ways to get rid of them and change them.

Steps involved in Business process reengineering are:

  • Identifying and communicating the need for change
  • Find inefficient processes & define the critical performance indicators
  • Reengineer the process and compare key performance indicators.

SIX SIGMA:

It focuses on manufacturing processes. The main idea behind it is minimising defects for every million opportunities.

Steps involved in six sigma are as follows (DMAIC):

  • Define
  • Measure
  • Analysis
  • Improvement
  • Control

SUPPLY CHAIN MANAGEMENT:

It is the management of the flow of goods and services and includes all the processes in an organisation that transform raw materials into final products. It involves active streamlining of a business's supply-side activities to maximise customer value and gain a competitive advantage in business.

Therefore an operations manager must take into account all the required factors when producing a product. The manager has to decide to balance the cost and quality of their product or service when determining whether to outsource, be creative with technology or have inventory. Also to choose to utiliseglobalisation as a strategy for the business. The management of these critical factors would contribute to the success or failure of the business, so the manager's choices on the business processes (operations) impact enormous amounts on how their business functions.

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Operation Management deals with the innovative approach and leadership qualities. Management of the process that changes power, labour, raw materials and time into a quality making of services and goods is described as Operations. 

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