What is Operations Management and Why Is it Important?

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Credit: MasterStart

Operations management may seem complex at first glance, but the principle is simple. In short, it is the management of everything between inputs and outputs in a business. Inputs can be anything from raw materials and equipment to personnel, and outputs are the finished product or service.

However, while the principle is simple, the job of an operations manager sure isn’t. It’s a very crucial job that demands a certain type of professional. If you are interested in this field, it’s a good idea to take a look at what operations management is more in detail and why it’s so essential today. Here, we’ll also take a look at what you need to do to get there, the skills and aptitudes needed, and what you can expect to do in your functions.

What is Operations Management Exactly?

Operations managers are deeply involved in the production aspect of businesses. Their job is to monitor processes to make sure they are as efficient as possible, from raw material inventory management to quality control and accurate budgets. They need to be able to monitor performance at every level and identify bottlenecks.

They also play a very essential role when it comes to supply chain management. Operations managers have to work with supply chain managers to make sure that their inventory doesn’t overflow. They also have to collaborate if procurement is slow or irregular. Operation managers are one of the most important elements if you want to keep operating costs low and maintain customer satisfaction.

What Are the Tasks Operations Managers Will Have to Perform?

The role of an operations manager is very multidisciplinary and demands someone with a well-rounded set of skills. Some of the responsibilities of operations management include:

  • Improving operational management best practices, systems, and processes
  • Ensuring that the company’s operations are performing in a cost-effective and appropriate way
  • Overseeing warehouse efficiency, planning inventory, and purchasing materials
  • Making sure processes remain compliant
  • Formulating operational and strategic objectives
  • Examining financial data and using it to improve profitability
  • Managing forecasts and budgets
  • Performing quality control
  • Supervising, training, and recruiting staff
  • Improving the customer experience

As you can see, your responsibilities as an operations manager will be very vast. While this makes it one of the most demanding positions in manufacturing, it’s also one of the most diverse and is great for people who love variety. Every day brings a new challenge in this field, so this is a great option for those who like to be in the middle of the action at all times.

As an operations manager, it’s also important to stay up-to-date with the latest technological advancements in your industry. Utilizing technology such as supply chain management software, project management apps, and inventory management software can help you avoid common warehouse mistakes, identify areas for improvement, and streamline processes. Be sure to stay open to continuous learning and improvement regardless of your experience in the field.

Why is Operations Management So Important?

Operations managers play one of the most important roles in business. They are those who ensure that products are delivered either directly to customers or to outlets on time. They’re the ones who have to make sure that the working force is properly utilized. This also means that they have to make sure that employees are not overworked.

Operations managers affect a business in so many ways. A bad operations manager will lead to inefficiencies in your processes, delays, shortages, and more. They also play an essential role in quality control.

That means that operations managers can affect employee relations, retention and morale, production, and brand image. So, as you can see, their role is absolutely pivotal and connects virtually every component of a business. This means that operations managers have to be involved in almost all major decisions and will frequently be asked for their input.

They’re the ones who will be responsible for rolling out new processes. They will have to make sure that everyone is in on the changes as well. That goes for the c-suite, managers, and people on the floor. They have to make sure that new procedures are being followed. These can not only affect the quality of the product and customer satisfaction but the safety of employees, as well as compliance. They also have to manage POs and collaborate if procurement is slow or irregular.

What Kind of Skills Are Needed to Be a Good Operations Manager?

Operations managers will need a good mix of technical and soft skills. This is because they deal with metrics as much as they do with people. They are the ones who understand the impact of measures and procedures on their employees and production the best.

As such, operations managers have to be great motivators. They need to be able to rally the troops and make them understand how certain changes are for the greater good of everyone. Also, they have to be able to push employees or departments when inefficiencies are caused by human factors.

However, operations managers need to care about customers first and foremost. This is your main goal as an operations manager, making sure that customers get their goods or services in time in the most seamless way possible. They need to know what is most important for customers, whether it’s fast service, reliability, or fair prices. By understanding what their needs really are, you’ll be able to build a connection with them and explain to your subordinates how to better cater to them.

Another trait that is essential for any operations manager is communication skills. They constantly have to switch between audiences and teams. They need to be able to speak to the level of the people they talk to. They don’t only have to be able to communicate their message to the staff, management, and the c-suite, but, more importantly, they need to be able to communicate it to customers. This is a skill that will be put to the test every single day that you work as an operations manager.

You also have to always be willing to expand your knowledge base and work on personal improvement. One great idea would be to start researching great leaders and implement some of their principles. If you want a list of great operations management books recommended by some of the greatest business leaders of today, click here.

To be successful as an operations manager, you also have to have a certain passion for numbers and data. You also have to have some business acumen as well. You will need to prepare expense budgets and sales projections. You will also need to analyze things such as balance sheets and profit and loss statements. Also, you’ll need to use business planning software to create reports and charts to perform financial projections.

Besides these skills, you will also need to be a great problem solver. A lot of your job will be to fix problems. You might have some quality control issues one day or have to deal with reduced staff because of conflict. You need to be able to find solutions to complex problems fast and under extreme pressure in some cases.

Great operations managers also know when to delegate. The main difference between happy managers and unhappy ones is that happy ones know when and how to get things done by other people. They also know when to take responsibility when they make mistakes.

How Can You Become an Operations Manager?

The first step to becoming an operations manager is having the right education. To work as one, you will at least need to have a bachelor’s in business administration or a related field. Having this kind of degree will give you what it takes to start building marketable skills and increase your knowledge base. As you build work experience, you’ll be able to start looking at positions at various levels with private companies, but also in the public sector or with international organizations.

You will often be offered positions as operation supervisor when first getting started. These are perfect to start learning, and the repercussions in case you make mistakes won’t be as major.  You’ll be able to start learning how to draft budgets, evaluate staff performance, and various other administrative functions.

Also know that you may be required to get a master’s if you want to have a realistic shot at working as an operations manager. You may be able to do it with a bachelor’s, but you’ll need to show your expertise through years of experience and have a verifiable track record.

Having an MBA is really your best chance if you want to get a position as an operations manager without having to spend years proving your potential. The MBA in operations management is a perfect option for someone who wants this kind of position. The great news is that there are plenty of great online operations management MBAs, so you’ll be able to get your qualifications while you work.

Not only will you be able to get new skills, but you will be able to apply them where you’re working. You might even be able to position yourself for a promotion before you finish. These classes can be taken at your speed and allow you to get your credentials much faster if that’s what you want. This makes them the perfect option for working professionals.

As you can see, the role of an operations manager is central to a business, and no business can succeed without a good one. This means that the door is wide open for those who possess the qualities and the knowledge to help businesses better reach their objectives.