Operations management is a process that involves planning, organizing, managing, controlling and supervising the production and manufacturing processes. But the major aim of an operations manager is to ensure timely delivery of the products and to successfully turn the raw materials into the finished products (input to output).

However, the role of operations management is very important for a service or product to be effective and efficient. It can significantly affect profitability in any kind of organization: small or large, manufacture or service, public or private, profit or not-for-profit. Thereupon, no business can hope success without operations management.

Importance of operations management

As its benefits include:

1. Operations management uses resources to create products/services that fulfill defined market requirement.

2. Operations management deals with the product and service development function to maintain speed, cost, quality and flexibility of the product or service.

3. The responsibilities of operations management are to keep strong supplier relationship process so that the raw material is supplied in a timely manner.

4. By Operations Management, customer relation management provides the best quality service to the customers in order to satisfy their demand.

5. Operations management involves similar management for every industry or business irrespective of their nature of the operation. Planning, organizing, staffing, monitoring controlling, directing and motivating are its significant elements.

6. Operations management is obligatory for organizations to manage the daily activities seamlessly.

7. With its help, an organization is able to make good use of its resources like labor, raw material, money and other resources.

8. Operation Management is important to improve the overall productivity. The ratio of input to output is termed as productivity.

9. Operation Management gives a measure of the efficiency of the manager as well as the employees.

10. Operations management is the management of the various business activities that take place within an organization and contributes to making the products to align with customer’s requirements.

11. Operations management is the heart of an organization as it controls the entire operation If the products are made catering to the needs of the customers then, they’ll be sold at a rapid rate.

12. Under operations management, there is the optimum utilization of resources leading to enormous profits of the organization. The efforts of the employees and the various raw materials are efficiently utilized and converted into the services and goods required by the organization.

13. Operations management plays a crucial role in an organization as it handles issues like design, operations, and maintenance of the system used for the production of goods.

14.Operations management that provides them profound knowledge and requisite skills pertaining to the sector.

Earlier everyone believed that the operations management was not that important for the organization, but later on, they found that it is actually important for the smooth functioning of the organization. Otherwise, the manufacturing of raw materials to make the goods and selling them along with management of sales is necessary, and this is done efficiently by managing the operations.


What are some of the challenges facing Operations Managers today?

OR current issues of OM?

OR What are the Current Challenges of Operations Management?

Here are the major challenges in the field of Operations Management will be as follows:

1. labor pool -The labor pool is smaller than in previous years, especially for skilled knowledge workers. We are having to try harder to hire good people.

2. warehouse space -There is less available warehouse space than in previous years. Rents are higher which affects our choice of geographic markets we are willing to lease space in.

3. Hyper-growth- Hyper-growth requires the ability to grow strong instead of fat.

4. Potential changes in regulations on products and surcharges on foreign import products will require a re-evaluation of our purchasing strategies. As many of the products we purchase from domestic suppliers are also made overseas.

5. The servitization of manufacturing – investigating how adding services in manufacturing organizations can add to their competitiveness.

6. E-operations – investigating the use of new developments in enterprise resource planning systems.

7. Outsourcing – looking at the bases for outsourcing and or insourcing of resources and capabilities.

8. Leanness and agility – looking at ways of reducing waste and increasing value created by operations.

9. Performance measurement and quality control – investigating how measuring operations can change operations behavior.

10. Coordinating the relationships between mutually supportive but separate organizations.

11. Optimizing global supplier, production, and distribution networks.

12. Increased co-production of goods and services. 

13. Managing customer touch points. 

14. Raising senior management awareness of operations as a significant competitive weapon. 



Contributor: Sadia Kazi

From Mawlana Bhashani Science & Technology University