How to Improve Your Operations Management

Running a successful business means having the right departments in place to ensure your business has efficient and safe procedures. Operations management is one area that can help businesses maintain best practices when coordinating the manufacturing and transportation of products. Learn more about operations management, its benefits, tips for improvement and additional topics of discussion.

 

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What is operations management?

Operations management is the process by which operations professionals within a company work to enforce good operations practices related to the manufacturing and distribution of products. In addition to adhering to laws and regulations, labor laws and environmental factors, operations management professionals also identify cost-saving initiatives and other factors that could help increase business profits.

 

Benefits of good operations management

According to winman.com, here are some examples of potential benefits that good operations management can bring to your business.

  • Establishes best practices to promote profitability: When a company establishes standardized practices, it may improve quality, efficiency and reduce waste of materials.
  • Ensures the quality of goods and products: An operations manager makes sure that the company obtains good resources and factory workers adhere to manufacturing standards when creating products.
  • Levels businesses with competition: Operations managers should establish more in tune operations, product sources,  product quality and manufacturing procedures.
  • Helps businesses maintain government regulations: This helps reduce legal action, maintain business operations and profits.
  • Aids customer satisfaction: Effective operation management should provide customers with quality goods in a quick and efficient manner.
  • Aids employee satisfaction: Allowing employees to follow clear and distinct guidelines for product creation supports employee satisfaction at the manufacturing level. At the sales and marketing level, employees experience increased satisfaction because they’re promoting a product they’re proud of.
  • Limits waste: By purchasing the right machinery and equipment, selecting the right amount of materials/resources and enhancing recycling procedures, a company eliminates wasteful practices.
  • Coordinates better team efforts: Establishing set roles and guidelines for both the operations team and those at the manufacturing level supports efficient workflows.

 

Tips for improving operations management

As mentioned by thereceptionist.com, these tips can help you improve operations management practices:

 

Review your company values

Your company values should be incorporated into every aspect of your company including operations. For example, if your company mission statement says "Quickness without minimizing quality" you should figure out how to translate that into the creation of your products. (e.g. Using the best raw materials and limiting human processes throughout the manufacturing process).

 

Look at your competitors’ operations tactics

If you’re unsure of which metrics to apply, review your competitors’ operation metrics to see how they ensure efficiency. For instance, your competitor uses factory injuries/incidents as a metric to determine whether or not they provide safe working conditions.

 

Enlist in operations management software

This will help you track specific metrics and compare data to make decisions about the efficiency of your company’s operations. It is also helpful to identify potential problems that need to be fixed to maintain operations. (e.g. slower product creation due to increased manufacturing errors).

 

Focus on how to complete a task before investing in the technology

A frequent mistake in operations management is to invest in machinery and equipment before you know how it will be implemented into operations. By deciding how you want certain processes to occur before investing in technology, you can potentially reduce waste and improve efficiency.

 

Frequently asked questions about operations management

 

What is an operations management system?

As mentioned by Process Excellence Network (PEX), an operations management system is used by business owners to evaluate and uphold operations standards within their company. For example, a company with strong values toward fair trade goods and environmental standards will include a bi-annual auditing process of their environmental contributions and factory working standards.

 

What is the difference between operations management and supply chain management?

The difference between operations management and supply chain management is that supply chain management focuses more on the process by which products and resources get transported to manufacturers and further, to storage facilities, retail locations and customers. In contrast, operations management focuses on the internal procedures and regulations that ensure the safe and efficient manufacturing and transportation of those goods.

 

What is the difference between operations management and project management?

Operations management is a permanent process where a company oversees the manufacturing process. In contrast, project management can focus on a variety of areas such as marketing to accounting. 

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