What is Operations Management?
Operations management refers to the administration of business practices to create the highest level of efficiency within an organisation. It involves managing materials and labour to produce goods and services as efficiently as possible. Operations include planning, organising and supervising the core production and delivery processes of a firm.
Operations management teams attempt to balance the costs with revenue to achieve the highest net operating profit. This requires utilising resources from staff, materials, equipment and technology. Operations managers acquire, develop and deliver goods to clients based on what the client wants and the abilities of the company.
PRAQTISE Fact File: According to a recent survey, the average salary for a fresh engineering graduate ranges from Rs 3 to 5 lakhs per annum. On acquiring enhanced qualifications such as MBA in operations management one can easily draw an average salary of Rs 6 to 9 lakhs per annum.
Advantages of MBA in operations management
MBA in operations management or a specialisation in a related field, such as logistics or supply chain management, allows a candidate to enter the industry by developing the requisite skill set. It also helps those already present in the industry to widen their knowledge base and push get into a business leadership role. Studying MBA in operations management offers a global perspective on industry trends and an awareness of trade regulations and political uncertainties which could impact an organisation. During the course students learn risk management, getting to grips with the industry’s inherent complexities and responding well to change.
Jobs of an Operations Manager
There are a diversity of opportunities and jobs for MBA in operations. Operations management handles various strategic issues including determining the size of manufacturing plants, project management methods, implementing the structures of information technology networks, management of inventory levels, raw materials handling, quality control, maintenance and so on.
Career Options after MBA in Operations
Supply Chain Manager
Supply chain is a holistic term, encompassing the entire process of value creation. A supply chain manager can be someone having a bird’s eye view of the company’s operations. It can also mean looking after a particular aspect of the supply chain.
Let’s talk about individuals in the roles of purchasing agents, buyers or purchasing managers. Their job requires buying goods and services for the organisation. It is their responsibility to find the superior inputs for the lowest price. They must have sharp networking skills. They are usually experienced in market aspects of particular type of commodities and know how to analyse the buying preferences of customers.
A supply chain manager is thus one of the most important members of any business entity.
Logistics Manager
A logistics manager has to work with the departments of purchasing, marketing and manufacturing. He then implements and manages those channels (both export and import) which are cost-effective. They are accountable for developing strategies for distribution and creating and maintaining contacts with logistics mediators.
Consultant
A consultant may work with a company to improve various aspects of its operations associated with logistics and supply chain management or any other department involved in the operations management. He must have prerequisite knowledge of information technology and use strategic planning to recommend operational changes. A consultant may work on global optimisation of a supply chain, selecting software and strategic sourcing. Their fundamental job is to assist an organisation in enhancing its logistics to increase the profitability.
Inventory Control Manager
An inventory control manager has to create, improve and put in place strategies that minimise costs associated with inventory and logistic. They try to increase efficiency and meet customer service expectations. It is also their responsibility to supervise the systems used for inventory management as well as any actual, physical inventory processes. The key focus areas for this profile are quality control and the smooth flow of inventory through the system.
PRAQTISE Factfile: A Snapshot of Operations Management Jobs
| Sector | Company |
| E-commerce | Amazon, Flipkart |
| Automobiles | Tata Motors, Bharat Benz |
| Agri business | Olam, ConAgra |
| IT/ITeS | Infosys, Accenture |
| FMCG | ITC, Colgate |
| PSU | HPCL, Indian Oil, BPCL |
The above were just some of the career opportunities available in the field of operations management. Do you know of some unique roles in this arena? Please let us know in the comments.
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