Operations Management Overview [Excerpt]

The term operations management encompasses planning, implementing, and supervising the production of goods or services. Operations managers have responsibilities in both strategy and day-to-day production, in either manufacturing or services. Sometimes called production management, the field is cross-functional, tying in with other departments such as sales, marketing, and finance. It’s involved in product or service creation, development, production, and distribution. In effect, it connects dots along the value chain.

Technology, ever changing plays a key role in launching constant advancements in operations management (OM). That’s truer now than ever before, thanks to budding advancements like self-maintaining smart machines (for production) and drones (for distribution). Companies that use technology well can thrive, and those that don’t may not survive.

“The future of operations management is going to involve increasing automation to the point that we will hardly recognize the way new organizations function,” says Iris Tsidon, Co-Founder and CEO of Okapi Vision, a cloud-based key performance indicator (KPI) platform.

This article will provide an overview of operations management: its history, importance, functions, strategies, principles, and types of production. You’ll also hear from seven operations management professionals about tips, challenges, trends, and the future of operations management.

Table of Contents

Operations Management Overview			1
	What Does Operations Management Mean?		2
		The History of Operations Management	2
		The Importance of Operations Management	3
		Functions and Roles in Operations Management	3
		The Relationship of Operations Management to Other Departments	4
	Operations Management Strategies		4
		Levels of Operations Management	5
	Principles of Operations Management		5
		Dr. W. Edwards Deming’s 14 Points	5
		Schaefer’s 10 Principles of Operations Management	6
		Dr. Schonberger’s 16 Principles of Operations Management	8
	Best Practices for Operational Excellence		8
	Prioritizing Customer Values		9
	Leadership Conduct		9
	Perception of Human Resources		9
	Process Management Effects		10
	Clarify Operational Excellence		10
	Biggest Challenges for Leaders to Implement Excellence and Quality:		10
	Environment of Improvement		10
	Best Practices Conclusion		11
	Types of Production and Production Systems		11
		Tips for Good Operations Management	11
	Current Trends in Operations Management		12
		The Pros Weigh in on Operations Management Trends	13
		What Is the Future for Operations Management?	13

What Does Operations Management Mean?

In its broadest sense, operations management is responsible for all aspects of creating goods and services. It manages resources such as materials, machines, technology, and people, and makes products and services that the marketplace wants. The whole chain of events must be well managed for a business to be competitive.

As we define operations management more fully, we consider these foundations of OM:

• Planning: Operations managers must constantly forecast, plan, and adjust to optimize processes based on conditions.
• Process: Production of goods or services requires having strong, repeatable processes.
• Efficiency: Managers must troubleshoot bottlenecks, inadequate resources, and downtimes to create optimal efficiency.
• Cost Control: Production is typically a major part of a company’s cost structure, and you must manage it wisely.
• Quality: Good quality control is necessary to maintain customer satisfaction and the company’s reputation. Companies can greatly suffer without it.
• Continuous Improvement: To remain competitive, companies need to have processes in place to consistently seek better ways of doing things.
• Technology: Underlying all of these foundations is technology. Well-used technology keeps a company ahead of the curve.
• Profitability: Executed properly, all of the above foundations lead to a strong bottom line.

To be continued…

Want to learn more?

Email us at info@DIADconsulting.com and request our White Paper, “Operations Management 101”.

Fill out our contact form to receive 2-hours free consulting via ZOOM or Travel — costs may apply to locations outside the Cincinnati, OH area.