As we know, operations management is a management that deals with managing operations and processes within the organization. Efficient operation management ensures project success. But what does an operations manager do?
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What does an operations manager do?
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Operations managers optimize operations by using resources and capital wisely. They manage all aspects related to the operations that occur in the business. Operations managers are not only found in companies but also in manufacturing units. They work to perform various functions as part of their job responsibilities.
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An operations manager is responsible for managing the input processing process (in the form of material, labour and energy) into output (in the form of goods and services).
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Operations managers have the same positions as other functional managers such as finance managers, marketing, and human resources managers that carry out management functions such as planning, organizing, coordinating, leading, and controlling. The operations manager implements management functions in the decision making process.
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Design products and services, which include what products or services are offered and how to design those products and services.
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Quality management, which includes who is responsible for the quality of products or services and how the company defines the quality of such products and services or services.
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The design of the process and capacity, which includes what processes are needed to make the product and what equipment and technology it needs to carry out the process.
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Location, which includes where the right location to carry out operating activities and what criteria are used as the basis for making company’s location decisions.
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Layout design, which includes how to arrange the facilities to facilitate operation activities and achieve objectives.
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Human resources and design work, which includes how to provide a good working environment and how much output is expected to be generated from the employees.
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Value chain management, which includes making your own decisions or buying required raw materials, determining who is the company’s suppliers and determining which suppliers are willing to integrate within the company.
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Supplies, material needs planning, and just in time, which includes what supplies should be and when to make a booking.
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Scheduling of medium-and short-term projects and activities, which include the decision of subcontracting or overtime work, or whether the company is better to provide more labour even if demand decreases.
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Maintenance, which includes who is responsible for the maintenance and maintenance of the company’s machinery and equipment.
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What are the main functions of an operations manager?
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1. Financial
Finances play a major role in operations management. It is also important to ensure that the organization’s finances have been used properly to perform key functions such as the production of goods or services so that customer needs can be met.
2. Operation
This function in operations management mainly relates to the planning, organizing, directing and controlling of all organizational activities that assist in converting raw materials and human resources into valuable goods and services to satisfy the needs of customers.
3. The strategy
The strategy in Operations management refers to the planning tactics that can help them optimize resources and have a competitive edge over others. In business, the strategy of implementing supply chain configurations (supply chain), sales, capacity to store cash, optimal utilization of human resources and much more.
3. Product Design
Combining innovative technology plays an important role in the sale of a product. Thus it is an operations manager task to ensure that the product is designed to win the market trends and customer needs. Modern customers care more about the quality of the product than their quantity. So, Operation Manager focuses on producing the best quality products.
4. Demand estimate
This refers to the process of making an estimate of certain events that may occur in the future. In operations management, this refers to the estimate of customer demand so that production can be done accordingly. Through this, the manager knows what to produce, when to manufacture and how to produce according to the needs of the customer.
5. Configuration of Supply Chain
The main motive of the chain supply configuration is to ensure effective management, monitoring and control of all major activities held in the company. The supply chain configuration is started from the raw material supply and continues until the final product production is then sold to customers who will meet their needs and desires.
6. Manage Quality
Quality management plays an important role in product marketing. The Operations manager allocates quality management tasks to the team and then oversees their tasks. The managers identified the project defects and repaired them to ensure the best quality. In this case, certain systems are used that measure and maintain the product quality.
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Career Path of Operations Manager
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Career path in operational management is also still wide open, both in manufacturing company and service company. In various companies, operations managers can occupy functions as a quality manager, Plant Manager, Director of Purchasing, Supply Chain manager and planner, and process improvement consultants.
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Operations managers should also understand some other functions, because their responsibilities relate to accounting, statistics, and finance. Some of the challenges that operational managers have to face in the various trends like global focus caused by various conditions such as cost reduction, world communication, and transportation network. Moreover, Operations managers should be able to respond by innovating or transforming ideas, products, or information into useful things. Operations managers are also required to cut the cost of inventory that is not precise anymore with various techniques like just in time.
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In addition, the increasingly short product life cycle, will encourage operational managers to build long-term relationships with suppliers. Rapid product development also encourages operational managers to respond with a fast design and technology Alliance, making product design more effective. The rapid change in needs and customer expectations should also be addressed by operational managers with flexible production processes and make decisions in empowering operational employees.
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Furthermore, there are several reasons why operations management needs to be studied. In the company, both the manufacturing company and the service company, 80 percent of employees of labour-intensive companies handle production or operation. For capital-intensive enterprises with auto-paced equipment and technology, 80 percent of corporate capital is also used for production or operation activities.
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Therefore, operations management is required in carrying out management functions such as planning, organizing, leading, and controlling the production or operation activities. In addition, operations management is one of the four main functions (operation, Finance, marketing, and human resources) within the company or organization, and integrates business with all three other functions. Therefore, in operations management need to be learned how to conduct organizing to produce productive activities.
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Operations management should also be learned to know how to produce products and services for the general public and customers in particular. In addition, by studying operations management, you can know what the manager is doing. The field of operation is an expensive field of work, although the highest revenue contributor for the organization is also the field of operation. Operations Management provides the highest opportunity for the organization to improve profits and improve service to the community.
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Lately, operations managers are conducting activities globally through global markets, global operations, global finance, and global value chains. Globalization can take form with marketing to overseas markets, produce overseas, purchase from overseas suppliers, or partner with foreign companies. Companies do globalization with various considerations, such as cost, enter the international market, more responsive to various demand changes, seek better suppliers, and to follow the development of trends and technology.
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What does a Supply Chain Manager do?
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