A Comprehensive Look at the Different Types of Operations Management

types of operations management

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Operations management deals with multiple aspects of an organization – not just the one-on-one day-to-day problems that arise. It acts as the eyes and ears of the organization and connects different departments. Without a solid operations management team, processes like R&D, supply chain, inventory control, and client service delivery are prone to mismanagement and underfunding.  To be more precise, operations management is the process of administering business practices in an attempt to balance costs with revenue and create high levels of efficiency. Operations management is responsible for taking care of different strategic issues that may arise. They are involved in acquiring and using different kinds of resources from staff, materials, equipment, and technology to develop and deliver the intended client-based goods.   In this blog, we’ll take a look at different types of operation management and how knowing this will help your organization reach that next level. So, keep reading!

Perception of Operations Management

Before that, it is essential to understand operations management a little bit more. The main purpose of operations management is to promote efficient business processes It refers to how the organization coordinates and sees the flow of information – how each department contributes, how resources are utilized, how the processes comply with the regulatory requirements, how operations managers efficiently manage daily operations, and how problems are resolved.  The goal of operations managers is to see how the organization’s efforts are utilized to the maximum, control expenses, ensure the right kind of people are allocated for the project, and continuously monitor performance.  For this, the operations managers should have a strategic vision and ensure that your business meets its goals and objectives. They need to be sure that the efforts of the team members align with the organization’s vision and mission. Operations management is necessary for any business type to stay ahead of the competition but manufacturing and hospitality industries need the most. In addition, understanding the 5P’s of operations management – (i) Plan (ii) Process (iii) People (iv) Possessions (v) Profits is highly essential for an operation manager. Management is not just about functions but about accomplishing business objectives and generating value. The 5P approach is generally applied to manufacturing industries but can be applied to any type of business.  It is always preferable for businesses to have a plan of action to be prepared ahead of time in case of any unexpected internal or external circumstances. The operations managers should come up with strategies that are long-term and are developed with the business progress in mind. Businesses should always be open to adapting refined processes that provide a competitive advantage. People are the essential components of a business and without the right kind of talent, it is difficult to achieve the desired results. Possessions on the other hand include assets, capital, and corporate holdings that enhance an organization’s value. Finally, profit refers to the management techniques that a company adopts to get long-term profitability
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Types of Operations Management

1. Manufacturing

The industrial revolution in the early 1800s laid the foundation for self-producing machinery and systems which enhanced the efficiency of the production process. The manufacturing industry involves the process of designing, producing, and delivering products. The operations management in a manufacturing company will be responsible for procuring raw materials, labor, and equipment. The operation managers will create schedules and control the financial and other elements involved in the manufacturing process. They oversee the entire process from procurement to delivery. They ensure that the final products are produced on time, checked for quality, and delivered to the customers. Furthermore, the operations manager ensures that the 5P’s – plan, process, people, possession, and profits are in place. 

2. Hospitality

This is again another industry where an efficient operations management team is inevitable. The operations manager takes care of the daily activities by streamlining the operations and making them as effective as possible. They will check for staff absence, client meetings, housekeeping, front desk, catering, program schedules, entertainment, understanding guest needs, increasing hotel profits, budgeting, and technology utilization. They ensure that there are no mishaps and that all aspects of business operations run smoothly. 

3. Retail

Here the operations managers are responsible for tasks such as restocking, inventory control, customer service, etc. Since retail industries generally run in chains, operations managers will be responsible for taking care of operations at different locations. They ensure that business goals are met at all store locations, resolve any customer issues then and there, recruit talented people for handling customers, vendor management, finance allocation accounting, promotions and pricing, merchandising, data management, store designing, and operation retail management training. 

4. Logistics

Operations management plays a significant role in logistics. The operations manager plans, implements, and controls the flow of products. They take care of how resources flow from their origin to the point of consumption. Having a solid operations team is helpful for logistics businesses as it helps enhance your business management and ensure on-time delivery to clients. Here the operations managers take care of the entire inbound and outbound logistics from e-commerce inventory control to shipping to local and international customers.

5. Supply chain

Like manufacturing, operations management in the supply chain is inevitable. The functions of an operations manager in a supply chain include product design, forecasting, logistics, resource and information management, and delivery workflow. These managers are responsible for resolving any disruptions that may arise in the supply chain. For instance, if raw materials are delayed from a specific vendor, they need to take immediate action in procuring them from a different supplier so as not to disrupt the schedule.

Challenges in Operation Management

From acquiring the right talent to keeping pace with innovation, operations management has some challenges.  Keeping up with the pace of innovation in today’s fast-paced business environment is said to be one of the biggest challenges to operations management. Since the workforce is made up of millennials, the existing employees are reluctant to change and adapt to new technologies. This brings a generational clash in terms of growth. Ineffective communication between departments affects project time and quality. The main challenge here is to achieve effective interdepartmental collaboration without wasting time on getting information.  This affects productivity and leads to employee burnout and turnovers. Therefore it is effective to have all information stored in a centralized location and encourage employees to have greater accountability to reduce stress.  Decision-making without data. Always the best decisions are made using data and statistical information. Data is not just about numbers but it provides an overall compelling story of how effective the operations are and what needs to be improved.  The data-driven decisions help achieve business goals and enhance customer satisfaction.  Strong competitors. When facing strong competitors you must conduct thorough research and analyze their strategies. Doing this will help deliver better products, retain customers, and increase sales. You can compare different benchmarks with the competitors and look for competitors’ customer reviews which can be a valuable source of information for you to improve your product and attract target audience effortlessly.   To overcome these challenges with ease, your operations managers should have the right tools that streamline your business operations and reduce their complexity. From process automation to business process management there are a wide range of tools available out there. Choosing Cflow will be a game changer.  Cflow is a cloud-based no-code workflow automation tool that automates workflows, processes, and operations and provides reports in real-time. It is a robust workflow automation tool that comes with comprehensive functionality offering a variety of automation capabilities. To know more about Cflow sign up for a free demo today.
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