A quick Overview of Operational Management

Benefits of operational Management

How the ideas and concepts of operational management can be applied to your business. 

The idea of operational management was born out of the manufacturing industry. The need to find the shortest path from raw resources began to become segmented and require oversight to ensure quality. Coupled with a higher standard of oversight and regulation, the role of operational management became a necessity and soon spread out to other industries. The idea of Operational Management can be accomplished by a single person.

Operational management is the function of connecting various pieces of a supply chain from the very first input to the finished output, making sure all the processes in-between run smoothly and effectively ensuring the required quality. The ability to manage this process heavily utilizes both concrete and soft skills. 

• Logistical Knowledge

 

• Prediction of trends 

 

• Broad Industry knowledge

 

• Finance

  

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• Networking 

 

• Problem solving

 

• Adaptability 

 

• Organization ​

Inputs

Operational managers make sure the right inputs are going into the system, are processed correctly, and are producing consistant results. 

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Inputs can be highly Variable Depending on industry type. 
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• Raw materials 

• pre-built components of a system. 

• Capitol

 

• Labor 

 

• Data 

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• Operational managers need to find suppliers that deliver based on their business model which determines the type of supply chain that they use. 

Inputs can vary drastically between industries. Manufacturing and Energy companies for example have extensive logistical supply lines that need to be operating efficiently at all times and rely heavily on the physical transportation of inputs. Raw materials also need to have intermediate stops in order to effectively be moved through where they're harvested, refined, and eventually made into a consumer product or sellable goods. The logistics and operations of unique business models can also have an effect on the process inputs take to become sellable. For example, running a hiring firm means that you need to find candidates, sort through potential leads,  and are able to deliver quality people to the companies that need them. A logistics supply line that routes and sorts information and people instead of a physical product.   

It may seem like a simple concept, but inputs and outputs are not always so clear and can depend heavily on the chosen business model. Another example of a non physical product is driving traffic for add revenue. The inputs are the labor cost and time required to build something people will give attention to leading to more add views. Some examples of this include informational sites, blogs, social media, and video streaming. 

Outputs

The number and type of output varies depending on the business model.

Some supply lines are more linear than others with a straight line from input to output, but this isn't the only option.  

For consumer products the process of moving from raw materials to a finished product can be further complicated by revisions during development, cost changes, supplier changes or variable transportation costs due to a shifting market. These issues can cause twists, turns, and tension on a straightforward supply chain. Operational managers smooth out the bit in the middle of that chain assuring a that product moves through development, production and distribution. This process keeps the entire machine in motion. Depending on the industry, the title of an operational manager might change but not the overall goal of finding the balance between efficiency and quality. They will, however, be responsible for getting those finished outputs to where they are needed with the exact specifications that is asked of them. 

• Media

• Manufactured Product

• Add revenue. 

 

• Sales

 

• Professional services

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In between: Where it really matters 

The process that your inputs go through, in order to become the finished products and meet the demand of your consumer is arguably the most important aspect of the job of Operational Management. The quality, speed, and price of production, are all determined by the machinery that sits between what you put in to it and what you get out of it.

Efficient Organization is the result of multiple skills being employed effectively across the length of the entire chain of operations .

Regulatory agencies can sometimes take on the function of operational management by ensuring the quality and source of materials, compliance with manufacturing data, and accepting or rejecting based on the information. Although regulatory agencies play a role in the quality of the supply line, they generally remain indifferent to efficiency, and third party experts are often brought in to serve as a go between with these agencies to aid in developing both quality and efficiency. 

Appropriate Logistical Models ​can be used to assure that materials and resources are delivered in tact, and on time, at the lowest possible price. The method that is used depends on your particular business model and your particular industry but the end goal of quality and efficiency remains the same.

Besides the concrete skills of mathematical models to calculate risk, there is a common theme across all efficient supply chains; Effective Communication. ​​A lack of communication between every link within a supply chain is like a lack of oil lubricating an engine. The machinery will start to break down as connections between components falter, and although it may run for some time after it will lead to expensive repairs. Fixing a supply chain may require burning bridges between companies and the added expense of finding new suppliers and distributers. A project management software can help keep projects organized and assure good communication across corporations and departments. Being able to locate deficiencies within the time of delivery and quickly assess and diagnose a problem can help assure that everything will run smoothly. 

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