Operations management is a critical business function that ensures the successful conversion of resources into products and services. It involves a wide range of disciplines, such as general management, factory and maintenance management, and IT operations management. To be successful, managers must be accountable and have checks and balances in place. Change is also welcome in operational issues, and modern change management methodologies, such as Agile, Six Sigma, Lean and Kaizen, should be adopted.
Today, manufacturing software makes it easier than ever to implement gold standard operations management principles in even the most complex enterprise manufacturing organizations. Henry Ford introduced the concept of an excellent assembly line into manufacturing, which was known as “Bringing Work to Men”. This led to the introduction of production management as a different concept known as inventory control, Taylorism, and production planning. Operations management consists of five basic principles: accountability, change management, operational efficiency, variance and responsibility.
Accountability means that each person who manages operations must be held responsible for their actions. Change management is the process of introducing new solutions for continuous operational improvements. Operational efficiency ensures that resources are used efficiently to achieve maximum performance. Variance is a way of introducing creativity into processes.
Responsibility means that the people who work in the organization are responsible for their tasks. The Pareto rule states that 80% of organizational objectives can be achieved by strictly maintaining disciplines and records of the work done by each individual in the organization. The other 20% is obtained through the adoption of new techniques to improve processes. An operations manager should encourage variation in the organization; this will help find creative methods to carry out different activities. Supply chain management is an integral part of operations management. Effective exchange of information between organizations and suppliers is essential for the organization.
Many of the activities (operations) of people in positions of responsibility are actually high-level management tactical operations. Due to ever-restrictive environmental regulations, companies must operate under pressure to reduce their harmful impact while being able to grow. Listening to workers' opinions often brings new ideas, a different perspective on what problems need to be solved, and how to make operations more effective. In conclusion, operations management involves an adequate and fluid flow of information in supply chain management. It consists of five basic principles: accountability, change management, operational efficiency, variance and responsibility. Modern change management methodologies should be adopted for continuous operational improvements.
Supply chain management is an integral part of operations management.
