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10 Essential Decisions in Operations Management and Its Role in Your Business

Desember 1, 2022
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Starting a business is challenging, even quite daunting for some. However once you’ve overcome that hurdle, the next challenge is managing your business. The sacrifices you’ve made when starting your business would mean almost nothing if it is not managed properly. This is when operations management comes into play, and the 10 areas of operations management decisions.

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Definition of Operations Management Decision

The 10 decisions of operations management is the list of activities crucial in managing and maintaining a business. Execute them well, and your business will stay afloat and can scale without many obstacles.

10 Operations Management Decisions

There are 10 operations management decisions, each of which has its own role in managing your business. Some might bear more importance to you than others, but all are crucial for your business nonetheless.

1. Goods and Services

A business cannot exist without offering something to consumers. The items offered can be goods and services designed to satisfy consumers without hurting the costs. Brands’ identities can also be added if necessary.

2. Quality Management

Well-designed goods or services can lure consumers at first, but what makes them loyal is the quality of those goods or services. Innovation is one way to boost your products’ quality, but you must also try to involve consumers.  It is important to do some research on the market to be able to identify their wants and needs.

3. Process and Capacity Design

Not only are the design and quality of goods or services notable to pay attention to, but the process of creating those goods or services as well. A great process can mean delivering a great product at a lower cost.

4. Location

This goes in hand with logistics. The closer the distance from both suppliers and the consumers, the lower the cost. 

5. Layout Design and Strategy

People get lost easily when they are in a labyrinth as it is designed to be that way. In a common business flow, however, getting lost is the first thing to be avoided. Therefore, every store pr outlet layout must be well-designed and, if necessary, follow the brand’s identity.

6. Human Resources and Job Design

Nowadays, with advancements in technology, machinery and robots take the role of doing many tasks from humans, but that does not remove the fact that skillful and talented humans are still and always be needed. Some types of work still require a human touch, so it is crucial for a company to recruit and train people with the correct skill and talent.

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7. Supply Chain Management

Ensuring you find a supplier that delivers a balance in quality of resources and in costs is essential to your business strategy. Choosing the best supplies is important, but choosing the best suppliers is important as well. Careful research has to be done before deciding on any purchase.

8. Inventory

Various markets have different inventory management issues, yet all must strategize and plan their inventory management. How an organization manages its inventory is influenced by the weather, supply limitations, and labor.

9. Scheduling

Efficiency is crucial for every business to stay afloat. For that, proper scheduling is also a part of the 10 operations management decisions that need to be executed well. This includes making sure that activities involving human resources as well as machinery or robots are properly scheduled and maintained for greater operational efficiency.

10. Maintenance

Nothing is perfect forever. Even a long-lasting and highly valuable gemstone like a diamond needs to be taken care of to keep its shine. In a reliable business, everything, such as workers, tools, machines, and working systems, has to be well-maintained.

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Operations Management Decision and How It is Important to Enhance Productivity

Productivity is a key to maintaining your business or making it survive during difficult time. The 10 operations management decisions can be used as a guide for you and your team to analyze and measure the productivity and operations of your business. Making use of an operations management software like Nimbly will allow you to have real-time visibility and data into your business and help you make informed decisions using the insights obtained from the app. Request a free consultation to find out more.

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