Operations Management (OM) Explained

• Operations management (OM) administers business practices for maximum organizational efficiency.
• OM balances operating costs and revenue to maximize net operating profit.
• OM coordinates, develops, and reevaluates business processes and structures.
• OM daily responsibilities require skills like technical expertise, motivation, analytical aptitude, decision-making, quality standards maintenance, and organization.

Objectives of Operations Management

• Achieving efficiency and productivity by minimizing waste, reducing costs, and maximizing output is a primary OM objective.
• Maintaining and improving product or service quality ensures products/services consistently meet or exceed expectations.
• Cost control and reduction maximizes profitability by analyzing cost structures and reducing waste without compromising quality.
• Supply chain management oversees the coordination and integration of activities across the entire supply chain.
• Innovation and continuous improvement involves exploring new technologies and encouraging employees to identify and implement process improvements.
• Strategic alignment aligns operational strategies with overall organizational objectives.
• Customer satisfaction involves monitoring feedback, analyzing preferences, and aligning processes to enhance satisfaction.

Critical Points Influencing Decision-Making in Operations Management

• Ascertaining company objectives ensures decisions align with goals.
• Data-driven analysis draws insights from data for informed decisions.
• Stakeholder analysis assesses stakeholder interests to understand decision impact.
• Cost-benefit analysis weighs costs and benefits of various options.
• Determining the scope of the decision identifies the decision's parameters.
• Analyzing available options assesses options before making decisions.
• Decision-making requires quick and efficient decision-making under pressure.

Key Functions of Operations Management

• Strategic Alignment
• Product Design and Delivery
• Process Optimization
• Daily Target Achievement
• Purchasing and Supply Chain Management
• Project Planning and Control
• Scheduling and Task Management
• Material and Equipment Management
• Capacity Management

Essential Skills for Operations Managers

• Analytics
• Risk Analysis
• Strategic Planning
• Decision-Making
• Budget Management
• Problem Solving
• Communication
• Leadership
• Organization

Nature of Operations Management

• Planning & Forecasting ensures effectiveness of the production method.
• Work Coordination effectively determines each employee’s role and responsibilities.
• Resource Planning determines production capacity and allocates resources accordingly.
• System Management aims to motivate individuals to contribute and positively impact financial performance.
• Inventory Control determines the optimal inventory level while minimizing expenses.
• Quality Improvement ensures goods and services satisfy or surpass expectations.
• Performance Optimization requires ongoing measurement and analysis to enhance outcomes.
• Implementation involves implementing a production system after manufacturing a product.
• Supply Logistics
• Enhance customer experience
• Increase profitability
• Grow market share
• Process Design organizes and supervises procedures to ensure seamless and timely operations.

Nature of Manufacturing

• Manufacturing creates finished goods via tools, labor, machinery, and chemical processing.
• Manufacturing processes and refines raw materials into finished products.

Types of Manufacturing

• Additive Manufacturing is commonly referred to as 3D printing.
• Advanced Manufacturing involves new forms of technology to improve production.
• Contract Manufacturing involves partnerships and outsourcing certain manufacturing processes.

Types of Manufacturing Techniques

• Make to Stock (MTS) manufactures standard products based on forecast demand.
• Make to Order (MTO) works directly with a customer to understand their needs.
• Make to Assemble (MTA)

Types of Manufacturing Processes

• Discrete Manufacturing units are often made on a production line.
• Process Manufacturing makes easily replicable goods of a specific quantity and is often used in the food and beverage industry.
• Mixed Mode Manufacturing uses process manufacturing initially, with unique specifics added later.
• Job Shop Manufacturing is used when processing a batch different from a company's normal product.
• Repetitive Manufacturing breaks processes into smaller parts on dedicated assembly lines.