7 Functions of Operations Management

Operational Planning

Finance

Product Design

Quality Control

Forecasting

Strategy

Supply Chain Management

7 Functions of Operations Management

Operational planning

the foundational function of operations management.

Your duties within this function may include:

• Monitoring daily production of goods

• Managing and controlling your inventory

• Keeping tabs on team member performance and well being

• Production planning

operational efficiency

The role of operations management is to uphold ______.

resourcefulness

skill needed for operational planning

Finance

an essential—and universal—function of operations management because every company strives to reduce costs and increase profits. As an operations manager, you’ll ensure company leaders keep the budget in consideration when they make important decisions.

Some of your tasks may include:

• Creating budgets to meet production goals

• Finding investment opportunities

• Allocating budgets and managing resources

financial planning

skill needed in finance

Product designers

may be the creatives of the team, but the operations team is the eyes and ears that gathers information from the market.

Once you identify customer needs and marketing trends, you'll relay what you've learned back to the designers so they can make a strong product.

data interpretation

skill needed in product design

Quality control

goes hand in hand with product design.

After the production team creates a product, the operations team will ensure it meets quality standards.

You’ll need to test the product to guarantee there are no defects before releasing it to the public.

conflict managemeng

skill needed for quality control

Forecasting

isn't just a term for the weather—operations teams also use forecasting to predict the demand for a product.

Your team can master forecasting by trying to answer hypothetical questions like:

• What will the demand for this product be in the future?

• What marketing and promotions should we plan for this product?

• What sales initiatives should we plan for this product?

• Can we estimate the storage costs we’ll need for inventory?

• Can we determine the cost of sourcing and raw materials?

data driven decision making

skill needed in forcasting

Strategy

broad function of operations management that can involve operational planning, monitoring, and analysis.The goal of strategic management is to make sure production decisions align with business goals.

Your company’s business objectives may include:

• Prioritizing customer satisfaction

• Improving the production system

• Controlling costs while maintaining a competitive edge

critical thinking

skill needed for strategy

supply chain management

If your company produces products or services, your company will need __________ for sourcing, producing, and shipping.

You may have a separate department for the supply chain, but supply chain issues related to internal production will be yours to handle.

problem solving

skill needed for supply chain management