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Operational management is the management of the functional departments responsible for manufacturing products or providing services in an organization. The objective of operational management is to transform materials and labor into marketable goods and services in an enterprise as far as possible so as to maximize the profits of the organization and to create the highest efficiency for the enterprise. The operation management team will also try to balance product and labor costs as well as income, in order to achieve the highest possible net operating profit，For a successful enterprise, they often have excellent personnel skills, creativity, rational analysis and technical knowledge. In this article, I will use critical thinking to analyze the essence of operation management and the role of modern operation managers.
The foundation of modern operation management is to improve modern enterprise management methods based on traditional operation management, such as business process redesign, reconfigurable manufacturing system, Six Sigma and lean manufacturing. They are all centered on the strategic objectives of the organization, formulating a series of service products with few resources for the organization and satisfying customers with good quality, so as to achieve the highest level of management that is economically acceptable and feasible.
Business management helps enterprises to establish the goal of minimizing costs and maximizing profits. Many service industries tend to provide customers with low cost and high quality services, which is their own interests. Therefore, in the operation and management of general service enterprises, they will aim at reducing the cost of products, but this will inevitably reduce the profit margin, that is, loss. Therefore, from the perspective of enterprise management, if an enterprise wants to retain customers without loss, it must redesign and improve its products through market research and customer feedback, so as to eliminate any factors that may increase costs and costs. Still keep the profit margin of the enterprise. At the same time, when an enterprise becomes a manufacturer with low cost and high profit, it can also gain the advantage of cost competition. For example, Airlines gain cost advantages by lowering ticket prices for basic services. Ticket products usually include insurance, food, oil, service fees and so on, so the price is often very expensive, but when there is a surplus of tickets, and airlines need to sell all, there will be no loss of their own situation, then airlines will choose to reduce ticket prices, but tickets do not include consignment packages, free food and other services. They usually only provide music entertainment services. If customers want other services, they need to pay extra for them.
Nowadays, many enterprises regard improving their products and product quality as one of their strategic objectives, which is also the core of modern operation management. Enterprises will choose quality improvement as one of the ways to achieve strategic objectives, that is, to improve their own product quality through market research and customer satisfaction suggestions, in order to establish a good brand reputation and enhance the competitive advantage of enterprises. Good operation management can help enterprises to establish a good quality management system and guide organizations towards a good direction in a competitive business environment, with the goal of improving quality and minimizing cost.
Operational management can help enterprises achieve their own goals and objectives, while ensuring the effective development of business activities. Operational management plays a guiding role, but only a single guiding role can not achieve the strategic objectives of the enterprise. Therefore, while guiding, it also needs to cooperate with the main functional departments of the enterprise to ensure the implementation of the objectives, such as marketing and sales, accounting, information communication technology services, administration, etc.
The function of marketing is to understand market demand through market survey and customer feedback so as to help enterprises adjust strategic objectives and improve products in time, and to promote their products and services through various advertising and promotional methods. To guide this goal, operation management needs to cooperate with market demand survey. Understand the different needs of different consumer groups to carry out the implementation of objectives. For example, the well-known Huawei mobile phone marketers are now not only introducing smart touch-screen phones and keyboard phones. In market research, they found that the common elderly people are not easy to use touch-screen phones and are prone to erroneous operations. Therefore, according to this demand, they launched a large font and simple keyboard. Man-machine. Nowadays, many young people like to take photos, so they have their own requirements for the beauty function and pixels of mobile phones, so Huawei has also launched a special beauty camera for photography. Huawei’s success today is due to the fact that when they manage the operation of their own company, they will take consumers as the main consideration and try their best to meet the needs of every consumer so as to expand their brand effect.
The function of enterprise accounting is usually to make invoices, check daily company records receipts, pay employees’salaries, and make company budget reports to ensure that company expenditures are not overdrawn. A successful enterprise will choose to minimize costs and maximize profits as its goal in operation and management. Therefore, the contribution of corporate accountants is indispensable to achieve the goal of the enterprise.
The function of information communication technology services is to ensure that the company’s software can keep up with the technological development and enterprise needs, and to establish a repair and prevent hacker virus for the company. Nowadays, the market demand is not only in stores, more people will choose to buy online, so as a service company, it is very necessary to have an online service, which takes into account the network security issues, in order to ensure the normal operation of the company’s system and a safe consumption environment, so it’s one of the most important business function department.
The function of management is to manage the daily affairs of the company, such as collecting and distributing mail, organizing meetings and rotating cup meeting documents, processing forms, arranging company activities, etc. It is equivalent to the housekeeper of the company, maintaining the daily operation of the company, and is also one of the most important operating departments.
Operations managers, sometimes referred to as chief operating officers, have become an important part of the management team in their leadership role. Their functions are usually to supervise the allocation and acceptance of senior human resources, such as attracting talent to work in the company and establishing training standards and basic recruitment procedures. At the same time, they are responsible for They also need to analyze and improve the organization’s target processes, and strive to improve the quality, productivity and efficiency of the company’s products and services. Their responsibilities are often: 1. Making important policy, decision-making and strategic decisions, as well as the company’s short-term and long-term goals. 2. Building alliances and partnerships with other organizations. 3. Supporting communication between employees and management teams.
- Will Kenton，Updated Jun 26, 2019.
- Betterteam, Updated May 21, 2019.
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