Attentive parents are generally joyful to see their toddler master such basic functions as walking and talking. They’re even elated when the infant gradually grows -- blossoming into a teen and, later on, into adulthood. Helping a child move through life stages requires patience, constant nurturing and performance evaluation -- important elements that operations managers also use to improve a company’s strategy formulation and implementation.
Operation management deals with standards a business sets to monitor and improve the way it produces goods and services, as well as how well it delivers such items to individual and corporate customers. To improve this work stream, operation managers work in tandem with department heads to come up with sound, easy-to-implement strategies. These run the gamut from establishment improvement metrics in production and logistical processes to modifying the way a company administers its financial accounting procedures and human resources policies.
A company struggling to make manufacturing ends meet may need to overhaul its production processes, requiring operating changes on a scale never seen before. The objective is to completely modify the way the business produces items without losing sight of the factors that previously threw the corporate strategy off kilter. Changing production processes is key to improving operation management because it has a direct effect on the company’s bottom line -- that is, it reduces expenses and therefore increases net income.
Logistics relate to how a company delivers goods and services, as well as tools and business partners it relies on to reduce the risks of loss and obsolescence during material conveyance. Charting a proper logistical strategy enables the firm to make good on its promises of prompt delivery and high-quality products. Logistical improvement is integral to productivity maintenance in such long-term infrastructure projects as build-operate-transfer (BOT) contracts and construction initiatives in the naval and airline sectors. In a BOT agreement, a business builds an infrastructure project -- such as a bridge -- operates it and transfers ownership to the government depending on contractual terms.
If there is one form of improvement that operation management engenders, it’s an acute awareness that the corporate work force remains an essential piece of the modern-day operating tool kit. A personnel management strategy improves a company’s operations by instilling in employees the notion that the firm’s success is also theirs. The blueprint can help set such policies as employee hiring and training, performance evaluation, compensation management and retention tracking.
Establishing proper financial strategies can improve operation management. These include budgeting procedures and cost-monitoring techniques along with financial accounting and reporting methodologies.
Marquis Codjia is a New York-based freelance writer, investor and banker. He has authored articles since 2000, covering topics such as politics, technology and business. A certified public accountant and certified financial manager, Codjia received a Master of Business Administration from Rutgers University, majoring in investment analysis and financial management.