7 Types of Operations Management You Need to Know
Operations management is the practice of overseeing the day-to-day activities of a business to ensure efficiency, quality, and profitability. Operations managers are responsible for planning, organizing, directing, and controlling the resources and processes involved in producing goods or services. There are different types of operations management depending on the nature and scope of the business. Here are seven types of operations management you need to know:
1. Product Design
This type of operations management involves creating or improving the design of a product or service to meet customer needs and expectations. Product design can include aspects such as functionality, aesthetics, ergonomics, sustainability, and cost-effectiveness. Product design can also involve innovation, research and development, prototyping, testing, and feedback.
2. Forecasting
This type of operations management involves predicting the future demand for a product or service based on historical data, market trends, customer feedback, and other factors. Forecasting can help operations managers plan ahead for production levels, inventory levels, staffing needs, and budgeting. Forecasting can also help operations managers identify opportunities and risks in the market.
3. Supply Chain Management
This type of operations management involves managing the flow of materials, information, and money from suppliers to customers. Supply chain management can include aspects such as sourcing, procurement, logistics, distribution, warehousing, inventory management, quality control, and customer service. Supply chain management can also involve collaboration, coordination, integration, and optimization among different parties in the supply chain.
4. Commercial Operations
This type of operations management involves managing the sales and marketing activities of a business. Commercial operations can include aspects such as market research, customer segmentation, pricing, promotion, distribution channels, customer relationship management, and sales force management. Commercial operations can also involve developing and implementing sales and marketing strategies to increase revenue and market share.
5. Quality Management
This type of operations management involves ensuring that the products or services delivered by a business meet or exceed customer expectations and standards. Quality management can include aspects such as quality planning, quality assurance, quality control, and quality improvement. Quality management can also involve implementing quality systems, tools, techniques, and methodologies to monitor and enhance quality performance.
6. Capacity Management
This type of operations management involves ensuring that the business has enough resources and capabilities to meet the current and future demand for its products or services. Capacity management can include aspects such as capacity planning, capacity utilization, capacity expansion, capacity reduction, and capacity balancing. Capacity management can also involve adjusting the production volume, workforce size, equipment usage, and facility layout to optimize efficiency and effectiveness.
7. Facilities Management
This type of operations management involves managing the physical assets and infrastructure of a business. Facilities management can include aspects such as facility design, construction, maintenance, security, safety, environmental compliance, and energy management. Facilities management can also involve optimizing the use of space, equipment, utilities, and services to support the core operations of the business.
These are some of the types of operations management that you need to know if you want to pursue a career in this field. Operations management is a vital function that can make or break a business in today’s competitive environment. By mastering these types of operations management skills you can help your business achieve its goals and objectives.
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Types of Operations Management and Their Global Demand
Operations management is the practice of designing and controlling the production and delivery of goods and services. It involves making strategic, tactical, and operational decisions to optimize the efficiency and effectiveness of business processes.
Product Design
Product design is the process of creating or improving a product that meets customer needs and expectations. It involves researching the market, generating ideas, testing prototypes, and launching the product. Product design is a key aspect of operations management because it affects the quality, cost, and time of production.
The global demand for product design is increasing as customers seek more innovative, customized, and sustainable products. According to a report by Grand View Research, the global product design and development services market size was valued at USD 157.38 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 8.9% from 2021 to 2028.
Forecasting
Forecasting is the process of predicting future demand, supply, and events based on historical data, current trends, and external factors. It helps operations managers plan and allocate resources, schedule production, manage inventory, and reduce uncertainty and risk.
The global demand for forecasting is increasing as businesses face more complex and dynamic environments. According to a report by MarketsandMarkets, the global forecasting software market size is expected to grow from USD 1.5 billion in 2020 to USD 2.9 billion by 2025, at a CAGR of 14.1%.
Supply Chain Management
Supply chain management is the process of managing the flow of materials, information, and money from suppliers to customers. It involves coordinating and integrating the activities of sourcing, purchasing, manufacturing, transportation, warehousing, distribution, and customer service. Supply chain management aims to improve customer satisfaction, reduce costs, and increase profitability.
The global demand for supply chain management is increasing as businesses seek more efficient, agile, and resilient supply chains. According to a report by ResearchAndMarkets.com, the global supply chain management software market size was valued at USD 14.5 billion in 2018 and is projected to reach USD 23.2 billion by 2023, at a CAGR of 9.9%.
Commercial Operations
Commercial operations are the activities that support the sales and marketing functions of a business. They include managing customer relationships, generating leads, closing deals, delivering value propositions, and measuring performance. Commercial operations aim to increase revenue, market share, and customer loyalty.
The global demand for commercial operations is increasing as businesses seek more effective ways to reach and retain customers in a competitive market. According to a report by Deloitte, the global commercial operations services market size was valued at USD 40 billion in 2019 and is expected to grow at a CAGR of 10% from 2020 to 2025.
References:
https://www.bls.gov/opub/mlr/cwc/american-labor-in-the-20th-century.pdf
http://wps.prenhall.com/wps/media/objects/107/109902/ch17_a3_d2.pdf
http://umairbali.ekalaam.com/Business%20Process%20Workflow%20Analysis/Week6/SMR-ServiceBusiness.pdf
https://en.wikipedia.org/wiki/Operations_management
https://www.netsuite.com/portal/resource/articles/erp/operations-management.shtml
https://www.grandviewresearch.com/industry-analysis/product-design-development-service-market
https://www.coo.page/what-are-the-4-types-of-operations-management
https://www.marketsandmarkets.com/Market-Reports/forecasting-software-market-147281334.html
https://www.studysmarter.us/explanations/business-studies/operational-management/
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