Operation Management’s Role in Business Today

Introduction

Operational management is the management of the process of activity in an enterprise. Operational management is a suitable option for companies that seek an innovative structure for streamlining and optimizing their business (Glock et al., 2019). Initially, in terms of the basic concept, the meaning of this approach was to optimize one phenomenon in the industry, for example, increasing the efficiency of the production process. Subsequently, the functions expanded, and as a result, continuous improvement became the central aspect. The system of resource consumption, delivery, distribution, communication of various employees, acceptance, and receipt of goods began to work more efficiently due to optimization.

Discussion

There are several key factors that have had a beneficial impact on the evolution of operations management. Such factors include the development of modern technologies, globalization, and staff training. The development of modern technologies has made a significant contribution to the evolution of enterprise management (Mišić & Perakis, 2019). The introduction of innovative, practical solutions has made it possible to work effectively and improve various processes at different stages of the development of production and distribution of resources and finished products. An essential role in modern scientific technologies is also given to information and telecommunication systems and the creation of new materials, which were subsequently actively used by people.

Globalization has also influenced the evolution of operations management. Globalization is an objective process of consolidation of heterogeneous connections and influences on a global scale. Through globalization, new ways of optimizing management were created, modern strategies were developed, and the most effective technologies were determined (Glock et al., 2019). Globalization has helped many companies optimize processes so that companies can enter the international market, adapt to it, identify competitors, and choose a work strategy. Through globalization, various business processes, such as distribution systems and logistics services, have been optimized, which has helped speed up the process of contacting suppliers and customers.

Staff training has played a significant role in the evolution of optimization processes. Achieving the goals, the need to increase competitiveness, and organizational changes required a higher level of professional training of personnel. In addition, well-planned, well-organized work on staff training was necessary. Growth-oriented enterprises have targeted and continue to target employees for training and professional development (Benjaafar & Hu, 2019).

This is because the knowledge gained after training is becoming obsolete, and technology is moving forward. Effective work of the company in the conditions of constantly increasing competition is impossible without improving work efficiency at all levels of the organization. Continuous development of personnel competence is the most important in the modern market economy (Glock et al., 2019). The staff needs to regularly retrain to new standards, learn to work on modern equipment, and find different approaches to solving issues. This will improve the efficiency of each employee individually, as well as the work of the entire organization.

The role of operations management is actively used in modern management to achieve the goals and strategy of the enterprise. Operations management helps businesses use their resources most efficiently. The operational strategy is aimed at defining resource use plans to maintain the long-term competitive strategy adopted by the company. The strategies of various enterprises are often based on high product quality, reasonable prices, the productivity of all elements of companies, customer satisfaction, and low operating costs (Benjaafar & Hu, 2019). Through the correct optimization of processes, companies manage to preserve all the listed components and simultaneously reduce the final cost of the product. A favorable price is one of the factors that determine the preferences of choosing a particular company by customers.

The main task of operational management is the rational use of resources and the leading indicator characterizing its efficiency and productivity. These factors of activity are provided by variables such as personnel and operations. Higher productivity in production can be achieved by improving the technological process, improving the quality and assortment of products, and reducing production time (Benjaafar & Hu, 2019).

Moreover, high indicators can be achieved due to the growth of qualifications and improvement of working conditions of employees, as well as the introduction of more advanced equipment and technologies. In the service sector, this is achieved by high-quality service, optimization of cargo delivery, reduction of order processing time, payment documents, payroll, financial transaction procedures, and others.

Conclusion

In conclusion, operational management, as a kind of organizational management, is one of the newest approaches to the direction of the organization. Operational management is designed to ensure the effective creation of use values by production organizations. The key factors contributing to the evolution of the working process are staff training, globalization, and the development of modern technologies. Through the development of each of the factors, the company will be able to increase the efficiency of its functioning, which will lead to the main objectives of the work.

These goals include increasing profits, focusing on customer satisfaction, increasing competitiveness, and improving the quality of products and services. One of the fundamental principles of operational management is customer orientation, which includes product quality, updating the assortment, changing the volume of output, and, most importantly, affordable prices for goods.

References

Benjaafar, S., & Hu, M. (2019). Operations management in the age of the sharing economy: What is old and what is new? Manufacturing & Service Operations Management 22(1), 93-101. Web.

Glock, C., Grosse, E., Jaber, M., & Smunt, T. (2019). Applications of learning curves in production and operations management: A systematic literature review. Computers & Industrial Engineering, 131(1), 422-441. Web.

Mišić, V., & Perakis, G. (2019). Data analytics in operations management: A review. Manufacturing & Service Operations Management 22(1), 158-169. Web.

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