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Operations Management: What is it?

Operations Management (OM) aims to achieve higher profitability for a company or business. This can be achieved in a multitude of ways, however, generally centers around implementing business practices aimed at achieving the highest level of efficiency possible (Hayes, 2024). To expand, OM looks to convert materials and labor into goods and services as efficiently as possible and is essential for balancing cost with revenue to attain the highest possible net profit (Hayes, 2024). 

A Few Key Concepts in OM

Process design and management involves the implementation of processes that produce goods or services, and effective process design ensures operations run efficiently (Belyh, 2019). For example, in healthcare we call this an SOP or standard operation procedure and they are constantly being revised for efficiency. Supply chain management involves the flow of goods and services from suppliers to customers and encompasses logistics, procurement, production and distribution (Hayes, 2024). Quality management, as the name implies, deals with ensuring products meet certain quality standards and may include such techniques as Total Quality Managment (TQM) or Six Sigma to reduce defects (Belyh, 2019). Inventory management deals with ensuring there is enough stock to meet customer demand without overproduction and may utilize such techniques at the Just-In-Time (JIT) inventory to improve efficiency (Hayes, 2024). Capacity planning is used to improve efficiency by ensuring resources are used optimally by determining what production capacity is needed to meet demand and avoid bottlenecks (Belyh, 2019). Lastly, lean manufacturing focuses on minimizing waste and maximizing productivity by enhancing efficiency and quality (Belyh, 2019). 

Trends in Operations Management

Operations managers are responsible for coordinating and developing new processes in addition to reevaluating current processes to ensure an organization meets its strategic goals (Hayes, 2024). OM is continuously evolving and now operations managers are able to use automation and artificial intelligence to help streamline processes and reduce human error (Hayes, 2024). Additionally, now more than ever, there is a focus on implementing sustainable practices that minimize environmental impact (Belyh, 2019). Finally, as it is now much easier to expand businesses globally, operations management must be able to adapt to different economic, cultural, and regulatory environments (Hayes, 2024). 

The success or failure of an organization is highly influenced by its operations management (Behyl, 2019). Implementing the concepts of operations management improve efficiency and reduce costs leading to higher profitability (Behyl, 2019).  In my career as a Physical Therapist, inefficient SOPs not only reduce my productivity, but they also impact patient care negatively. SOPs that are efficient improve my productivity and patient access to services. This makes operations management critical for the quickest access to healthcare and when dealing in life-or-death situations is monumental.   

References:

Hayes, A. (2024 July 23). Operations management: Understanding and using it. Investopedia. https://www.investopedia.com/terms/o/operations-management.asp

Belyh, A. (2019, September 23). Operations management: Definition, principles, activities, trends. CleverISM. https://www.cleverism.com/operations-management-definition-principles-activities-trends/ 


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