What is it? Operational management (OM) is an activity aimed at increasing the efficiency of production and sales of the company's main product - a product or service.
Why is it necessary? The tasks of operational management include reducing costs, improving quality, timely implementation of innovations and rational organization of business processes. Large companies involve an operational manager to implement them, but every manager must have skills in this area: from the head of department to the director.
The article explains:
The concept of operational management
Functions of Operational Management
Principles of chinese thailand data package Operational Management
Elements of Operational Management
Strategic and tactical decisions in operational management
Methods of decision making in operations management
Requirements and tasks of an operations manager
Evaluation of the effectiveness of operational management
Operational Management Software
Useful literature on operations management
Frequently Asked Questions about Operations Management
5 Scenarios for Using Neural Networks to Increase Website Conversion by 40%
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The concept of operational management
Literally translated from English, "operations management" means "operations management". Different researchers put different meanings into the content of this concept. Let us formulate a general definition:
Operating activities should be understood as the activity of an enterprise that is aimed at achieving maximum efficiency in the production of goods/services in order to increase business profitability while simultaneously reducing costs.
The following features of operational management follow from this interpretation:
Focusing exclusively on the core activities of the enterprise, which use the main resources that are spent on the implementation of the main business processes. At the same time, the manager's task is not limited to simply producing a product from available materials.
The goal is to minimize costs without affecting the quality of the product, or to increase profitability without using additional resources. At the same time, during the main activity, the manager inevitably encounters auxiliary operations, and it is necessary to clearly understand how they affect the results of the basic process.
Let's assume that an enterprise is engaged in the production of food products. In the course of this work, it is inevitable to establish processes for the supply of raw materials, shipment and delivery of finished products to customers, and their storage. The manager must be aware of all actions and be able to regulate work in an optimal way for the success of the main activity.
The same applies to accounting. Specialists must have a clear understanding of the influence of some business processes on others, their connection with finances.
The concept of operational management
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In modern enterprises, it is sometimes very difficult to separate the main activity from the auxiliary one. Let's remember Netflix. You can't say right away which direction is its main one, the production of media content or the development of software for using it. To achieve maximum efficiency of the basic processes in the enterprise, the following is required from the manager:
Increasing the productivity of existing enterprise resources. Business operations must ensure rational use of time, raw materials, and labor resources.
Reducing costs without reducing profitability. In the production cycle, it is necessary to identify factors that increase costs and eliminate them in a timely manner.
Improving the quality of goods and services. This requires both optimizing the existing production cycle and introducing new technological processes that improve the characteristics of manufactured products without increasing costs.
Timely introduction of changes to production operations , analysis of optimization possibilities. Moreover, such modifications should be made in advance, before their absence begins to negatively affect the competitiveness of the enterprise.
Optimization of auxiliary processes, reduction of their negative impact on the main activity. Thus, in the above-mentioned production of food products, it is necessary to eliminate interruptions in the supply of raw materials, promptly sell stocks of goods, provide the necessary conditions for storing perishable products.