Operations Management: What Is It and Why Does It Matter?

Operations management is the execution of backend business functions and is an exciting career field to join. It involves overseeing manufacturing, inventory, and quality control to ensure market-ready products and service. Whether it’s a single operations manager or a whole department, excellent operations management helps ensure business efficiency.

Learn all about about operations management, why it's important, and how you can break into this career field.

What is operations management?

Operations management is the administration of business structure, practices, and processes to enhance efficiency and maximize profit. It refers to the management of functions that a business needs to run effectively day-to-day, including:

• Overseeing multiple departments and providing goals

• Overseeing and streamlining processes

• Balancing revenue and costs

• Developing strategic plans

• Production, logistics, and supply chain

Why is operations management important?

Operations are the foundation of how a business works (in terms of supply chain and logistics) and profits rely on lean, efficient operations. Poor business operations can threaten a business’s survival, so processes must be optimized, the right staff need to be employed, and physical locations must be strategic, ethical, and safe.

 

Responsibilities of operations managers

Duties vary according to the nature of the company and the specific role, but in general, someone working in business operations is responsible for:

• Evaluating, designing, and implementing business processes

• Managing logistical processes and supply chain

• Overseeing production, distribution, and quality assurance

• Managing and analyzing financial budgets

• Making strategic decisions and engaging with other senior staff members on business strategy 

• Supervising employees

• Supporting HR with recruitment initiatives

• Building relationships with stakeholders and suppliers

Skills needed

Working in operations management requires a variety of skills, including:

• Leadership ability

• Organizational skills 

• Interpersonal skills

• Problem-solving ability

• Process improvement

• Project management

• Financial analysis

• Business acumen

• Detail-oriented approach

• ​Communication skills

• Decision-making ability

• Excellent time management 

inventory
英 /ˈɪnvəntri/ 美 /ˈɪnvəntɔːri/
n. 库存;(商店的)存货;(建筑物里的物品、家具等的)清单;财产清单
vt. 开列清单

streamlining processes

精简流程

logistics
英 /ləˈdʒɪstɪks/ 美 /ləˈdʒɪstɪks/
n. 物流;后勤;组织工作