Operations Management – An Overview

Operations management is a critical component of any successful business strategy. It involves managing resources, activities and personnel to achieve specific objectives through careful planning and control.

Continuously  meeting customer needs calls for a focus on improvement and optimization of sourcing, production and delivery processes and channels while maintaining or enhancing quality. This can help boost productivity levels significantly while also reducing waste (time, effort, resources, money).

In short, effective operations management is essential to maintain competitiveness and profitability.

The Value of Efficiency in Business Operations

Customers nowadays, regardless of industry or sector, expect:

  • high quality products and services
  • at reasonable prices
  • delivered promptly.

To remain competitive you need to streamline operations to

  • minimize inventory
  • reduce lead times
  • eliminate waste
  • increase throughput
  • maximize resource utilization

This can help you to be responsive to changing market conditions and deliver better value for money.


Streamlining requires identifying areas for improvement and typically involves analyzing workflows to pinpoint bottlenecks and areas where waste occurs. Improvement can be achieved by

  • reducing handoffs
  • simplifying forms and procedures
  • automating repetitive tasks
  • updating and upgrading employee skills, tools and technology
  • implementing lean manufacturing principles e.g  just in time (JIT) production
  • focusing on continuous improvement (Kaizen, Hoshin Kanri)
  • introducing six sigma techniques to achieve greater consistency

Adopting one or more of these strategies can increase productivity and reduce costs.

The Importance of Technology in Improving Operational Efficiency

Technology has become an indispensable tool for improving operational efficiency. Many companies have adopted advanced technologies such as enterprise resource planning (ERP) systems, supply chain management (SCM) software and customer relationship management (CRM) solutions to:

  • automate processes;
  • gather real time data;
  • enhance collaboration;
  • drive innovation; and
  • optimize operations.

These help businesses to reduce costs and provide greater visibility of key performance indicators (KPIs).


Optimizing performance takes action. This involves

  • setting clear goals and objectives and establishing Key Performance Indicators (KPIs)
  • investing wisely in technology and equipping employees with the necessary skills and tools
  • fostering a culture of continuous improvement

By adopting these measures you can increase efficiency and productivity while reducing costs and waste.

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