Think Ops Mgmt Is Only for Big Manufacturing Businesses? Not So Fast
When you hear the phrase “operations management,” do you naturally assume it involves automating processes in big and / or manufacturing-related businesses that produce products?
Yes, in in large manufacturer, operations management involves using robotic and other machines to assemble products efficiently and cost-effectively. However, the operations net covers a much vaster realm.
Beyond the Machines
Did you know that any organization that produces something, whether it’s a tangible product or intangible service, needs to maximize its operations if it wants to efficiently and effectively serve its customers?
Let’s compare a manufacturer and a call center:
- To make a profit, the manufacturer must provide the precise number of quality products in a cost-effective way to meet customer demands.
- A call center must have the technology and the right number of trained staff to efficiently and cost-effectively address customer service calls or it will lose revenue.
They have the same objective: To make a profit from producing their products or offering their services.
Why Maximized Operations Management Is Crucial to Any Organization
Operations management uses resources to efficiently create outputs that fulfill market requirements — either for a profit or to provide a service. Resources can include people, technology, experience and expertise.
Any organization needs fine-tuned operations management to be successful:
- A nonprofit uses its resources to provide services that benefit society in some way
- A healthcare organization uses its resources to diagnose and treat patients
- A marketing firm uses its resources to create marketing materials and implement initiatives that exceed its clients’ expectations
- A government agency uses its resources to fulfill community needs
- A financial firm uses its resources to earn money for its clients
- A fast food chain uses its resources to serve inexpensive food to its customers
The list is endless. The point is that any organization, regardless of its size or industry, must have a mindset that operations management is a vital part of its success. Even small organizations must produce and deliver their products or services efficiently and cost-effectively.
Operations Is the Foundation
In all organizations, operations produces goods or services, which is the reason the organization exists. In addition to producing goods or services, operations provides support functions to other departments such as accounting, customer service and human resources.
Partnership Is Crucial
Departmental boundaries can interfere with efficient internal processes. One of the most important responsibilities of operations management is working effectively — as a partner — with all of the other departments.
Adaptability Is Necessary
As the business climate changes, operations must adapt and proactively prepare for industry disruptors.
Customers and clients have enormous control over where they spend their money. Brand loyalty is not what it used to be as savvy customers comparison shop for products and services. Organizations must be agile and quick to adapt — or risk being left behind.