Why is operations management important to business

International Marketing Management November 27, Importance of Operations Management in Business Organizations. Firstly, what is Operations Management OM? Operations management is widely used irrespective of the size of a company or what they do. Key Benefits of Effective Operations Management 1. Product Quality The first unit in a typical firm that checks durability and reliability in a product is the operations management. Productivity Productivity is defined as the ratio of input to output and it is the only way to verify employees input.

Customer Satisfaction There is no feeling for a manager or an employee as a customer getting the utmost satisfaction ever. Reduced Operating Cost Through productivity, quality products and customer satisfaction, cost incurred on products servicing is maximally reduced. Related posts. Data Analytics is the Future of Businesses Read more.

Most of the Japanese manufacturers have implemented operational management techniques and their organizations in order to improve the efficiency and effectiveness of their Production and Manufacturing. As a result, most of the Japanese businesses have managed to focus on their other departments like finance and marketing because operational management helps the organization to make the production or manufacturing department effective and efficient.

By this, they can allocate the proper amount of time for other departments in the company. It is important for any organization to help innovation in its Production and Manufacturing stages. Without the implementation of innovation, organizations related to Production and Manufacturing cannot effectively compete with competitors in the market.

One of the most significant methods, which can be used in order to implement innovation in manufacturing and production process, is to improve the production process. By improving the production process, the organization is able to effectively use its Limited amount of raw material in order to effectively and efficiently convert it into products.

It is important to implement new technology in order to improve the process of production. This ultimately improves the level of operations management in the organization.

Different studies have been conducted in past suggesting that there is a positive relationship between operations management and sales of the company. With the increase in the level of effectiveness in operations management, the organization is able to positively increase the sales of the company. It also contributes positively to reducing the cost and reducing the production and operational cost.

These factors are significantly important for the progress of any company. There are two methods, which can be adopted in order to increase the sales of the company. The first method suggests that the overall sales of the company can be increased by using Different techniques like promotion, discounts, offering value-added products, and other related techniques.

The other method suggests that the operational cost of the company can be reduced in order to improve the overall profits of the company. These systems help planners save time while providing greater agility in updating ever-changing priorities, production schedules, and inventory plans. The implementation of an Advanced Planning and Scheduling APS Software will take your manufacturing operations to the next level of production efficiency by taking advantage of the operational data you already possess in your ERP system.

APS is a step in the right direction of efficiency and lean manufacturing production enhancement. Try out a free trial or demo!

Topics: operations management. Operations management ensures that products meet the quality standards and offers opportunities to identify areas where quality can be improved. Here, reliability and durability refer to products that last a long time before they encounter breakdowns and that can withstand damage. Enforcing a quality management process can ensure the efficient delivery of products and services that consumers can rely on. Customer Satisfaction - Customer satisfaction is essential for any manufacturing operation as it ensures future business from your current customers.

While operations management takes care of creating products and services of high quality, it also ensures that customer needs are met.

When your operations are running smoothly, it will allow you to deliver your products on time to your customers and increase their satisfaction. In addition, improving your processes may cause you to decrease your production lead times, allowing you to deliver quality products in a short amount of time.

This is true regardless of the size of the company, the industry it is in, whether it is manufacturing or service, or is for-profit or not-for-profit. Operation management is a crucial tool which help organization to achieve its objectives.

This is required for limited period of time and finances to fulfill the objectives. Benefits of safe, timely, cost effective, high quality and law abiding production Safe production is important for sustaining the skilled workforce. This gives them the peace of mind and make the most of their abilities to contribute towards the prosperity of the company. Safety at the workplace will also help to lower down costs by curtailing off insurance costs, lost costs and legal fees.

These costs could be incurred if the safety of the …show more content… It is the planning before the action. In includes many activities like making decisions, making strategy for organization etc. At this time strategic planning is an important part of strategic management. Strategy describes how the goal achieves by using the available resources or what kind of resources they need to achieve the goals.

This strategy is used when the organization wants to set the goals and wants to make the planning to achieve these goals by available resources. Strategy also defines what kind of resources we need to achieve the goals set by the. Show More.