The Concept of Operational Management:
Operational management is a function of converting inputs into outputs, thereby adding value to some companies. The right quality, the right size, the right time and the right price are the four basic requirements of customers and they determine the level of customer satisfaction. If these are provided at a minimal cost, the value of the goods produced or the value of the services provided increases.
Operational management is concerned with managing the resources that directly drive the company’s service and products. Resources generally contain people, material, technology, and information, but may go much broader than this. These resources are combined through a series of processes so that they can be used to deliver the company’s primary service or product. Operational management is therefore concerned with managing inputs (resources) through transformation processes to deliver outputs (services or products). The objectives of production management are “to produce products and services according to the right quality, in the right quantities, timetable and minimum cost”.
The skills required to perform such a task are as diverse as the process itself. The most important skills are:
Organizational Skills: Organization of processes in an organization requires a set of capabilities ranging from planning and prioritization to monitoring. Together these skills help the administrator achieve productivity and efficiency.
Analytical skills/understanding of the process: The ability to understand the processes in your area often includes a detailed understanding of other functions. Paying attention to details is often helpful to go deeper into the analysis.
Integration of processes: Once the processes have been analyzed and understood, they will be optimized for maximum efficiency. Rapid decision-making is a real advantage here, as well as clear-focus problem-solving.
People Skills: Deficiencies in communication with employees or members of senior management can severely impact productivity, so an operational manager must have the people skills to properly line up with their peers. Also, clear communication of tasks and objectives can help you be better motivated and give everyone a purpose.
Creativity: Problem-solving skills are essential to the creative approach if things don’t go in the right direction. As they do so, creativity helps them find new ways to improve corporate performance.
Technology: In a time when operations are increasingly technology-dependent, the ability to understand and design processes is a communication skill that cannot be underestimated. Operational managers need to be familiar with the most common technologies used in business organizations and have a deeper understanding of the specific operational technology in their organizations.
Principles of Operational Management:
Continuous, Rapid Improvement: The aim of non-stop improvement is always to provide the best possible quality, always responding to customer needs quickly and always providing maximum flexibility. Therefore, it provides more value in a more flexible way.
Integrated Purpose: Engage frontline employees in strategic discussions to make sure they understand the purpose of their work and what they need to change.
Reality: Operational management should focus on the problem rather than the techniques because no tool will present a global solution.
Accountability: Managers set rules and metrics and define the responsibilities of their subordinates, as well as regularly check that the goals are being met. Only in this way will the workers make the necessary effort.
Change: There will always be new theories and solutions, so you may not stick with one or the other, but embrace change and manage stability for the long term.
Also read: Concept of Production Management, Importance of Production management, Qualities of Production Manager, Concept of Entrepreneurship, Types of Entrepreneur, Process of Entrepreneurship, Need of Entrepreneurs, Barriers to Entrepreneurship