In a competitive economy, businesses need to leverage every advantage available while preventing waste whenever and wherever possible. These pursuits form the basis of operations management, in which efficiency-oriented policies or procedures ensure that every activity allows organizations to make progress toward ambitious objectives.
In operations management, there is no room for waste. This unique field calls for creative, analytical, and highly driven professionals, who understand what is at stake, and who can work collaboratively to identify and implement solutions. Many fields can benefit from their expertise, but often, potentially talented professionals overlook this niche because they struggle to understand: what is operations management, what is an operations manager, and what does an operations manager do?
We will answer these critical questions below, providing a helpful operations manager job description and insight into closely aligned roles and opportunities.
What Is Operations Management?
At its most basic level, operations management strives to boost efficiency and minimize waste. By organizing and optimizing critical business processes, operations managers enhance productivity and ensure that each business function achieves its maximum possible return on investment (ROI).
In Transportation Operations Management, Darren J. Prokop explains that this field involves the “application of purposefully designed processes or systems to better understand or improve specific business activities.”
Core Areas of Focus in Operations Management
Operations management is, by nature, interdisciplinary, with elements of finance, marketing, and even human resources integrated to great effect. Together, these practices reveal how individual employees and entire teams can bring about dramatic improvements in efficiency while also boosting long-term profit margins. Key elements that contribute to these objectives include:
- Supply chain management. Driving the efficient flow of goods and services from material sourcing to distribution, supply chain management reveals how raw materials eventually make their way to consumers as finished products. This is one of the most critical components of operations management. Without careful coordination, the supply chain can introduce several potential sources of inefficiency.
- Inventory management. Overseeing both raw materials and finished products, inventory management ensures that the right components are available at the right time and in the right location or situation. This encompasses numerous priorities that relate to operations management. That consists of warehousing practices, order quantity optimization, and return strategies. Success means balancing inventory levels with fluctuations in demand, while limiting holding costs whenever possible.
- Quality control. While operations management tends to involve an intense focus on efficiency, quality absolutely matters. If products do not meet quality standards, an organization’s long-term ROI is sure to suffer. What’s more, issues with quality can prompt high return rates and other sources of strain on the supply chain.
- Process optimization. Bringing a systematic approach to waste reduction and efficiency improvements, process optimization addresses workflows, along with opportunities to improve their efficiency, often through resolving bottlenecks. This effort may also emphasize consistency through the development of standard operating procedures (SOPs), along with benchmarking to reveal how organizational efforts compare to industry standards.
What Does an Operations Manager Do?
The general role of an operations manager is to oversee day-to-day business operations and to drive efficiency within those activities. However, these priorities can look considerably different between various sectors or enterprises. However, generally, these managers offer oversight, coordinating schedules and collaborating with various teams or departments to manage resources and streamline critical processes.
Operations Manager Role and Responsibilities
Operations manager job descriptions typically reference day-to-day operations, along with the strategic development of operating plans or financial objectives. Key responsibilities may involve employee supervision, budget management, and process improvements. To succeed in this field, aspiring operations managers should be prepared to handle these essentials:
Planning and Strategy Development
In operations management, day-to-day oversight must be guided by strategic plans, which aim to align everyday tasks with overarching company objectives. These should also incorporate action plans, which help bridge the gap between high-minded objectives and day-to-day performance.
Operations managers, especially those employed at the executive level, may analyze external concerns (such as market trends) and internal issues (such as labor concerns) to formulate strategies. These will ideally leverage unique strengths while also addressing operational weaknesses.
Process Management and Optimization
Operations managers should not be committed to upholding the status quo. Rather, they seek out improvements that can elevate existing processes. This effort often emphasizes bottleneck identification, although in-depth reviews of performance metrics can also reveal opportunities for improvement.
Resource Management
From personnel to equipment and technological solutions, a wide array of resources must be leveraged to allow operations managers and the teams they oversee to achieve key goals. Prioritization is essential, with allocation often guided by resource availability and task urgency.
Forecasting can help operations managers allocate resources more effectively over time, as this allows them to anticipate and proactively address fluctuations in demand or availability. Constraints must also be considered, especially as they relate to space or budgetary concerns.
Budgeting and Financial Management
As a critical component of resource allocation, budgeting allows operations managers to make the most of available financial resources while also revealing opportunities for cost savings. Operations managers may be responsible for tracking and analyzing operational costs, overseeing accounts payable, or conducting budget reviews. Budgeting represents a continuous process that calls for periodic adjustments.
Performance Monitoring and Reporting
Performance monitoring allows operations managers to determine whether current processes or workflows deliver desired results. This begins with the identification of key performance indicators (KPIs), which offer valuable insight into output, cycle time, ROI, and more. This information will ultimately play into process improvements.
Compliance and Risk Management
A complex web of industry standards and government regulations should drive a compliance mindset when addressing everyday tasks and processes. These professionals must remain up-to-date on evolving requirements, enacting policies or procedures as necessary to boost compliance. Meanwhile, strict documentation requirements and even automated systems can ensure that teams adhere to compliance protocols.
Risk management is also crucial, as risks like supply chain issues or internal equipment failures could potentially disrupt otherwise efficient operations. These risks should be identified, assessed, and analyzed, with strategic measures implemented to reduce their likelihood or avoid them altogether.
Customer Service and Satisfaction
Efficient operational procedures drive strong customer service, ensuring that products or services are delivered quickly and while adhering to strict quality standards. This boosts customer satisfaction. Operations management can also boost satisfaction by providing efficient systems for addressing returns, complaints, and other potential issues.
Leadership and Team Management
To promote productive teams, operations managers convey goals in a way that resonates with different types of employees. They also delegate tasks according to employee strengths and capabilities. Open lines of communication empower teams, as do ongoing training initiatives and active efforts to foster a positive work culture.
Innovation and Continuous Improvement
Operations managers encourage creative thinking, with the recognition that innovations will ultimately drive the most significant improvements in productivity or customer satisfaction. This role calls for a clear willingness to rethink existing processes and reshape them as new insights or technologies become available.
Key Qualities of an Operations Manager
Every operations manager brings different strengths to the table, but employers typically seek out a few key qualities when evaluating candidates for potential operations manager jobs:
- Problem-solving and decision-making. From day-to-day operational issues to long-term process improvements, many operations management concerns call for exceptional problem-solving skills. Ideally, operations managers will be capable of synthesizing a wealth of data and numerous perspectives to arrive at the best strategy based on the situation at hand.
- Analytical thinking. As an increasingly data-driven field, operations management relies on extensive information to enable reliable forecasting and resource allocation. Analytical thinkers are better equipped to evaluate both risks and performance.
- Communication. Operations managers must communicate extensively with team members, vendors, and even executives. They may need to adapt their messaging to fit the unique needs of different employees or stakeholders.
Typically, the most effective operations managers feel at ease working under pressure and in a fast-paced, dynamic environment. Hardworking and passionate, they continually strive to expand upon their existing skill set.
The Impact of an Operations Manager on an Organization
Effective operations management can be hugely impactful. By eliminating waste and boosting productivity, these powerful professionals can drive massive improvements in profitability. They are among today’s most valued and respected management professionals, and for good reason. They contribute greatly to these essentials:
Enhance Efficiency and Productivity
Operations managers are committed to improving efficiency. Research verifies that many of their central strategies have a quantifiable impact. For example, insights published in the journal Materials Today: Proceedings suggest that lean manufacturing (increasingly a priority across the scope of operations management) delivers clear “reduction[s] in cycle time [and] elimination of non-valued activities” while also driving a “smooth production flow [and] increase in productivity.”
Ensure Quality and Compliance
Operational processes have the power to enhance compliance, which can protect businesses and may even lead to significant improvements in customer trust and satisfaction. In a Charity CFO podcast, Director of Operations Krysta Grangeno explained that compliance is a core part of the “backbone” of any organization, and that it is one of the core functions needed for “sustaining organizational efficiency” and “driving operational excellence.”
Drive Strategic Initiatives
Business visionaries develop ambitious objectives but rely on operations managers for effective implementation. The best operations managers can translate lofty visions into quantifiable progress, while also helping to develop strategic visions both ambitious and achievable.
Career Paths and Job Opportunities
Operations management is a surprisingly diverse field, encompassing far more than the dedicated role of operations manager. There are several ways to specialize or to climb the operations management career ladder. While there is no ‘typical’ career progression, many successful operations managers will eventually navigate these key stages:
Entry-Level Positions
It can be difficult to enter the operations management field without a bachelor’s degree. Upon securing this crucial credential, aspiring operations management professionals can move into entry-level roles, which provide valuable exposure to critical systems and processes.
A number of aspiring operations managers initially work as operations coordinators. This involves a greater focus on daily operations, such as scheduling or tracking day-to-day performance metrics. Another excellent option is working as an assistant operations manager. This may involve close collaboration with the operations manager, but with less autonomy or decision-making authority.
Advanced Career Paths
Operations manager positions are typically regarded as mid-level roles. Upon working in this field for several years and, ideally, securing an MBA or other business-oriented master’s degree, successful operations managers may begin to explore higher-level options, such as Director of Operations or Vice President of Operations. This involves a greater strategic focus and a broader scope of responsibility.
At the executive level, Chief Operating Officers (COOs) drive far-reaching operational activities, overseeing everything from production to quality control while also driving cross-functional coordination.
Alternative Career Paths and Related Roles
Expertise in operations management can be leveraged to make waves in aligned roles, including positions involving logistics or supply chain management. Top options include:
- Production Manager. Offering strong manufacturing oversight, production managers ensure that appropriate resources, personnel, and equipment are made available for production processes, while also driving efficiency and exceptional quality in all areas of production.
- Logistics Manager. Handling the distribution of goods, logistics managers oversee inventory control, warehousing, and other aspects of supply chain operations. They strive to deliver products on time and in a cost-effective manner.
- Supply Chain Manager. This role has much in common with the previously described logistics management but may encompass the full supply chain, consisting of everything from sourcing and procurement to product delivery.
Opportunities for Specialization
By securing the right certifications or graduate-level training, operations managers can specialize in targeted strategies or methodologies, which many of today’s top employers find compelling. Lean management particularly promises to limit waste and boost productivity through continuous improvement and just-in-time production. To this end, some employers actively seek out specialists such as lean management coordinators.
Operations Manager Salary and Job Outlook
Plenty of ambitious individuals seek to understand, what do operations managers do? This knowledge must be underscored by a strong grasp of the field’s outlook, which can drive early educational decision-making. The good news? This field boasts a strong outlook and opportunities for achieving impressive earnings.
Operations Manager Salary Overview
Operations managers command strong earnings, driven, in part, by the huge improvements that they can potentially bring to overall ROI. Still, there is considerable variation, driven by different sectors and varying educational attainment and experience. Geographic variation also exists, to the point that some aspiring operations managers are focused on potential earnings in specific locations.
Job Market and Growth Prospects
As organizations seek to cut costs and maximize efficiency, opportunities abound for professionals with operations management expertise. This field shows strong growth potential, especially as cutting-edge technologies enter the fray. The right degree can give aspiring operation managers a considerable edge, helping job candidates stand out in a potentially crowded job market.
Operations Manager Educational Path
The path to becoming an operations manager typically involves a business-oriented education. Some professionals can enter the field upon obtaining their bachelor’s degree, although many operations managers go on to pursue their master’s, often by enrolling in MBA programs. A targeted degree can expedite entry into this field, while also ensuring that aspiring operations managers have the right skills and valuable professional contacts.
Operations Management Degree
One of the best ways to enhance a promising operations management career path? Enrolling in a dedicated operations management degree program.
The Bachelor of Science in Operations Management is an excellent option, encompassing foundational coursework that delves into enterprise resource planning and lean manufacturing. Other priorities include supply chain operations and project management. Students find numerous opportunities to apply targeted skills and connect with industry leaders.
Certifications and Professional Development
Learning certainly does not end with an operations management degree, and given the increasing pace of change within this industry, it is more important than ever for the aspiring business operations manager to adopt a spirit of continuous learning. Thankfully, there are tons of ways to continue developing critical skills while also getting familiar with cutting-edge technologies and methodologies.
A graduate-level education is a great option, but some operations managers also seek targeted certifications that align with their niche or specialty of choice. Top options include Six Sigma certification and becoming a Certified Operations Manager through the American Institute for Business Management and Communication (AIBMC).
Explore Operations Management Opportunities with Baker College
As you prepare for an impactful career in operations management, look to Baker College’s career-driven degree program to help you acquire a well-rounded skill set. As you pursue your Bachelor of Science in Operations Management, you will gain the competencies needed to drive both efficiency and innovation. Get in touch to learn more.