What Is Operations Management? Why It’s So Important for Companies

Operations management is how businesses make sure everything runs smoothly. It helps manage resources like time, money, and people to deliver quality products or services. For example, in manufacturing, it ensures production lines are efficient, while in retail, it keeps shelves stocked and supply chains organized.

Studies show that companies with good operations management are 40% more successful in meeting their financial goals. It helps businesses meet customer demands, reduce costs, and stay competitive. Without operations management, businesses can struggle to handle daily tasks and long-term growth.

Let’s cover what is operations management in detail before moving forward. 

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What Is Operations Management?

Operations management includes planning and supervising how products are made or services are delivered. It makes sure businesses use resources wisely while meeting customer needs.

• It plans schedules to complete work on time. For example, in a bakery, it organizes tasks so cakes are baked and ready on schedule without delays or wasted ingredients.
• It manages supply chains to ensure smooth delivery. For example, for an online store, it ensures the shoes are made, shipped, and delivered to customers without hiccups.
• It improves workflows to increase productivity. For example, in a restaurant, it finds the best way for chefs and servers to work together so food reaches customers quickly and perfectly cooked.

The Role and Core Functions of Operations Management in a Company

• Align Work with Business Goals:
  Operations management ensures that every task contributes to the company’s objectives. Example: A retail store restocks shelves before a big sale to ensure customers find what they need, boosting sales and meeting revenue targets.
• Adapt to Market Changes:
  It helps businesses stay competitive by adjusting to new trends or customer preferences. Example: A small shop adds delivery services when online shopping becomes more popular, helping them reach more customers and increase sales. 
• Keep Daily Operations Smooth:
  Operations management ensures that day-to-day tasks like production and customer service are completed efficiently and on time. Example: A delivery company carefully plans routes to avoid delays, ensuring packages reach customers as promised.
• Plan for Long-Term Growth:
  It focuses on improving processes and adopting practices that help the business grow sustainably. Example: A factory switches to solar power to reduce energy costs and meet environmental goals, saving money while protecting the planet.
• Balancing Inventory:
  Keeps stock levels just right—not too much, not too little. For example, a grocery store ensures fresh produce is available daily while avoiding excess that might go to waste.
• Maintaining Quality:
  Checks that products or services meet customer expectations. For example, a bakery ensures cakes are baked perfectly to keep customers happy.

Now that we’ve covered what is operations management and its responsibilities, let’s read about its types. 

Types of Operations Management

Different businesses need different types of operations management. Here are the main ones:

1. Manufacturing Operations

This type focuses on producing goods efficiently while keeping costs under control.

• Example: A furniture factory manages raw materials, labor, and equipment to produce tables and chairs at the best cost.
• Responsibilities include:
  • Scheduling production to avoid delays.
  • Reducing waste in materials and time.
  • Ensuring the final product meets quality standards.
  • Maintaining equipment to avoid breakdowns.
• Key goal: Deliver products on time while minimizing costs and ensuring quality.

2. Service Operations

Service operations are about delivering a good customer experience.

• Example: A hospital ensures patients receive proper care, doctors are scheduled, and facilities are maintained.
• Responsibilities include:
  • Managing staff to ensure smooth service delivery.
  • Monitoring customer satisfaction and addressing complaints.
  • Keeping facilities clean, organized, and ready to serve.
  • Optimizing service times, like reducing waiting times for patients.
• Key goal: Provide reliable and satisfactory services to customers or clients.

3. Supply Chain Operations

This type ensures goods are sourced, stored, and delivered efficiently.

• Example: A clothing brand sources fabric, ships finished products to stores, and ensures timely delivery to customers.
• Responsibilities include:
  • Coordinating with suppliers to ensure raw materials arrive on time.
  • Managing warehouses to keep inventory organized.
  • Overseeing transport and delivery schedules to avoid delays.
  • Tracking shipments and resolving delivery issues quickly.
• Key goal: Keep the flow of goods smooth and cost-effective.

4. Retail Operations

Retail operations focus on managing stores and the customer experience.

• Example: A supermarket ensures shelves are stocked, checkout lines move quickly, and customers find what they need.
• Responsibilities include:
  • Keeping inventory at optimal levels.
  • Training staff to provide excellent customer service.
  • Managing sales events and promotions.
  • Monitoring customer behavior to improve the shopping experience.
• Key goal: Maximize sales while ensuring customer satisfaction.

5. Healthcare Operations

Healthcare operations focus on patient care and resource management.

• Example: A clinic schedules appointments, keeps medical supplies stocked, and ensures doctors and nurses are available.
• Responsibilities include:
  • Scheduling staff to meet patient needs.
  • Managing medical inventory like medicines and equipment.
  • Ensuring facilities meet health and safety standards.
  • Reducing patient wait times for better care delivery.

• Key goal: Deliver effective care while maintaining operational efficiency.

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Careers in Operations Management

Whether you're just starting or aiming for a senior position, there are plenty of opportunities in this field.

1. Operations Analyst

Primary Responsibilities: Analyze data to optimize operations, identify inefficiencies, and recommend improvements.

Average Salary (in INR): ₹3,50,000 - ₹8,00,000 per year.

2. Supply Chain Manager

Primary Responsibilities: Oversee supply chain activities, ensure timely delivery of goods, and manage supplier relationships.

Average Salary (in INR): ₹6,00,000 - ₹27,00,000 per year.

3. Logistics Coordinator

Primary Responsibilities: Coordinate transportation, manage inventory, and ensure efficient storage of products.

Average Salary (in INR): ₹3,00,000 - ₹7,00,000 per year.

4. Production Manager

Primary Responsibilities: Supervise manufacturing processes, ensure quality standards, and manage production schedules.

Average Salary (in INR): ₹5,00,000 - ₹12,00,000 per year.

5. Inventory Manager

Primary Responsibilities: Track inventory levels, manage stock flow, and reduce overstock or shortages.

Average Salary (in INR): ₹4,00,000 - ₹9,00,000 per year.

Salary Ranges in Operations Management

Salaries in operations management depend on factors like industry, location, and experience level. Entry-level positions generally start around ₹3,00,000 per year, while senior roles can exceed ₹7,00,000 annually, especially in industries like manufacturing, retail, and technology.

Responsibilities of Operations Managers: A Typical Day

Operations managers handle many tasks throughout the day to keep everything running smoothly. Here’s an example of how their day might look:

8:00 AM – Setting Goals and Checking Progress

• Meet with teams to discuss daily targets.
• Check the progress of ongoing tasks like shipments or production schedules.
• Adjust plans if any delays or issues arise.

10:00 AM – Improving Workflows

• Review current processes to find where time or resources are being wasted.
• Plan small changes to make tasks faster and simpler.
• For example, reorganize a workspace to make it easier for workers to access tools.

12:00 PM – Working with Teams

• Meet with department leads to solve any problems.
• Discuss challenges like delays in deliveries or equipment issues.
• Share ideas and agree on solutions to move forward.

2:00 PM – Ensuring Compliance

• Do a quick review to make sure safety rules are being followed.
• Check that documentation meets industry standards.
• Plan training sessions to keep everyone updated on the latest regulations.

4:00 PM – Reviewing the Day and Planning Ahead

• Summarize what went well and where improvements are needed.
• Send updates to senior management.
• Set priorities for the next day to keep progress on track.

The Skills Every Operations Manager Should Have

Operations managers need a combination of technical and soft skills to perform their roles effectively. Here’s a list:

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• Flexible Learning: Study at your own pace without disrupting your schedule.
• Real-World Skills: Learn through practical projects and case studies.
• Guidance from Experts: Get tips and insights from industry professionals.
• Career Support: Access job assistance and connect with top companies.

Programs Offered by upGrad

1. MBA Courses in Operations Management

• Learn how to manage supply chains, logistics, and business operations.
• Work on real-world projects to develop problem-solving skills.
• A great choice for those who want to step into leadership roles.

Become an operations leader. Join the MBA program today!

2. Certificate Programme in Operations Management and Analytics

• Focus on learning operations and data analytics in a short timeframe.
• Understand how to optimize processes and make smarter decisions using data.
• Perfect for professionals who want to sharpen operations manager skills quickly.

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Source:
https://www.mckinsey.com/capabilities/operations/our-insights/todays-good-to-great-next-generation-operational-excellence
https://www.glassdoor.co.in/Salaries/operations-analyst-salary-SRCH_KO0,18.htm
https://www.glassdoor.co.in/Salaries/supply-chain-manager-salary-SRCH_KO0,20.htm
https://www.glassdoor.co.in/Salaries/logistics-coordinator-salary-SRCH_KO0,21.htm
https://www.glassdoor.co.in/Salaries/production-manager-salary-SRCH_KO0,18.htm
https://www.glassdoor.co.in/Salaries/inventory-manager-salary-SRCH_KO0,17.htm