What are the most important ingredients for business success?
A great leader?
Your Suppliers or Trading partners?
It is all of the above made into one delicious meal and served as ‘operations management’
Taking control of your business operations is a daunting task. It is not something you learn in one day, but it definitely needs your attention and focus to become really good at it.
Operations management is how you manage the flow of activities between the various stakeholders in your business.
How do you source your raw materials or conceptualize your services?
How do you manage your budget spends and increase profits?
How do you make sure your team is able to work in optimum capacity? (Optimum capacity
is a manufacturing rate with the lowest possible cost. When a company is at optimum capacity
, it produces the most it can with the smallest amount of cost. In other words, a production capacity
in which the cost of production of one extra unit is the same as the average cost for every unit.)
How do you ensure your products and services are delivered to your end-user on time, with great customer experience during the process?
How do you manage inventory? Are customers complaining that they are not getting what they want? What is the tradeoff?
The answers to these questions is why we need to understand operations management.
In simple terms, operations management is how we manage activities in our business, get the right inputs and translate them into the exact outputs for the end-user in products and service delivery.
Why does operations management make all the difference in your business?
Operations management is how you convert your business strategy into action. Have you ever complained about planning, and strategizing for your business but can’t seem to understand how to successfully implement?
With operations management, you can predict outcomes. Without efficient operations management system in a business, factory, restaurant or service delivery company, you won’t be able to predict the outcome. some days can accidentally be great, and other days can be really bad. With operations management, you learn how to improve day by day on the previous day’s performances.
Here is a link to a video I found on YouTube by Samantha Magers that might help you understand operations management if I did not do justice to the subject. lol.