What do you think when you hear the phrase operations management? A dry topic reserved for the boardroom? Well, operations management is actually all around us. Think of the last time you ordered a coffee or bought something online. You know, the process that ensures your coffee is hot and your package arrives on time? That’s operations management in action.
Whether it’s a small café or a global tech company, every business relies on effective operations management, covering everything from the big-picture strategy to the day-to-day tasks. That said, not all operations management is the same. Different companies have different needs, and how they manage operations reflects that.
Some companies focus on making products, while others concentrate on providing services. Some prioritize speed and efficiency, while others put high-quality management or flexibility first. Juggling these varying priorities can be tough, often requiring you to handle multiple projects that have unique demands and require custom operations strategies.
However, with the introduction of work management software like Wrike, the days of struggling with disorganized tasks, missed deadlines, and overwhelming project loads are over. You can have a streamlined operations management process where every project — whether it’s a daily inventory restock or the next groundbreaking tech release — starts with all the information you need right at your fingertips.
Organize your workloads and reach your operational goals with Wrike — start your free trial now.
This article will cover the different types of operations management, from manufacturing and service operations to project-based operations. We’ll check out how each type works, analyze their challenges, and outline the strategies to overcome them. By the end, you’ll understand what operations management looks like in various settings — and why it’s such an important part of any business.
Understanding operations management
In a nutshell, what is operations management? (Or “ops management” for short?)
Well, if you’ve ever wondered how things just work in a business, the answer is: operations management.
Essentially, operations management is the practice of overseeing and improving the processes involved in the production and delivery of goods and/or services. It includes planning, organizing, and controlling resources to ensure operations run smoothly, with the aim of meeting customer needs and achieving organizational goals.
But let’s break down operations management into something we can all relate to.
You’re planning a big road trip with your friends. You’ve got to figure out your route, which snacks to bring, how to keep entertained, and where to make pit stops. In a way, you’re managing the operations of your road trip to ensure everything goes to plan. In the case of business, it’s the same: operations management is about ensuring a company’s day-to-day activities run without a hitch.
Wrike’s operations templates can help you with your daily operations management, whether you’re developing new processes or tweaking existing ones. Our templates include everything from employee onboarding and offboarding to detailed attendance tracking and inventory management.
Consider the attendance tracker template, for instance. It simplifies tracking employee presence, ensuring that staffing needs are always met without the hassle of manual checks. Or the vendor management template, which provides a clear overview of stock levels, aiding in timely reorder processes and preventing overstocking or stockouts.
And for those looking at the bigger picture, the business model canvas template allows teams to visualize and plan their strategies comprehensively.
Without operations management, businesses could quickly fall into problems. Imagine a restaurant that doesn’t plan its menu properly, runs out of ingredients, or fails to serve meals on time. Customers would be unhappy and the business would suffer. That’s why effective operations management is so important.
Operations management is also a relentless quest for improvement. You have to constantly be asking yourself, “What can I do better?” or “How can we make our products even better?” or “Is there a faster way to deliver our services?” By continuously looking for improvements, businesses stay ahead of the competition and keep customers returning.
Wrike simplifies this by giving you a clear, at-a-glance view of your strategic operations, making it easier to spot inefficiencies and fine-tune your operations.
What do business operations managers do?
Below are several key functions of operations management that are essential for the smooth functioning of an organization:
- Planning: Operations managers are responsible for developing strategic plans to achieve organizational goals. This involves forecasting demand, setting production targets, and creating schedules to optimize resource utilization.
- Organizing: Operations managers oversee project management and coordinate the allocation of resources, such as personnel, equipment, and facilities. They design workflows, establish production processes, and implement systems to maximize efficiency.
- Problem-solving: Operations managers handle unexpected challenges and obstacles that pop up during daily operations. They figure out what’s causing the issue, come up with solutions, and put them into action to keep everything running smoothly and avoid disruptions.
- Controlling: Operations managers monitor production processes, assess performance against targets, and implement corrective actions when necessary. They use key performance indicators (KPIs) to measure productivity, quality, and cost-effectiveness.
- Improving: Operations managers continually seek ways to improve processes and enhance performance. They analyze data, identify bottlenecks, and implement process improvements, such as Lean manufacturing techniques or automation.
How to start a career in operations management
If you’re interested in getting into operations management, there are a few different paths to becoming an operations manager. One common route is to begin with a bachelor’s degree in business administration, management science, or a related field. This will cover the basics of operations management and beyond.
Another way in is by gaining hands-on experience in management roles. Starting in an entry-level position and working your way up can be just as effective as formal education.
To stand out in the field, consider enhancing your skill set by:
- Earning certifications like Six Sigma or Certified Operations Manager (COM) to boost your credentials and demonstrate your expertise
- Gaining experience with operations management techniques like Business Process Reengineering (BPR), which focuses on redesigning business processes to improve efficiency
- Reading operations management books like “Strategic Operations Management” (by Steve Brown et al) to help you better align operations with business strategy
A master’s degree in business administration (MBA) or similar with a focus on operations can also open doors to more advanced roles.
Types of operations management
The primary goals of an operations manager are the same across industries. They improve productivity, reduce costs, and enhance efficiency. But the approach to achieving these goals can vary significantly.
For example, if you’re an operations manager in a healthcare facility, your main focus will be on making sure patients get the best care possible and that everything follows strict regulations. If you’re working as an operations manager at an IT firm, you may be focused on getting projects done efficiently and fine-tuning technical processes.
Here are the different types of business operations management, each with its own focus and objectives:
Service operations management
How do top-notch services come your way with a snap of your fingers? Well, that’s service operations management in action. This could be anything from running a hotel to operating a bank or providing internet services. Here, the focus is on delivering top-quality service to customers.
It’s not about tangible products, but rather making sure customer expectations are met through efficient service delivery. Managing staff schedules, ensuring speedy service, and maintaining high customer service standards are all part of the mix here.
Now imagine how useful it would be if you could see exactly what each part of your team is working on and how it all ties together. That’s where Wrike’s cross-tagging shines. It lets teams see tasks in the bigger picture of their projects and the company’s goals. With Wrike’s cross-tagging, you can bookmark those key tasks and subtasks, no matter where they live — be it in folders, milestones, phases, or across various projects.
This feature is a game changer, especially when you need to zero in on specific details without losing sight of the big picture.
Let’s say you’re overseeing the visual assets for a new seasonal campaign. With cross-tagging, you can tag just the design-related subtasks and have them appear in your folder or a specific project report. It streamlines your focus, ensuring you’re always in the loop with the tasks needing your green light.
Production operations management
This is all about making stuff. Whether it’s cars, smartphones, or your favorite chocolate bars, production operations management focuses on turning raw materials into finished goods. It involves planning production schedules, managing inventory, and ensuring machinery is humming without a hitch.
Project operations management
Big projects, tight deadlines! How do the pros handle it? Let’s find out.
Project operations management emphasizes executing specific organizational projects. This might be constructing a building, developing new software, or organizing a marketing campaign. It focuses on hitting those milestones and achieving the project goals within the set time frame and budget.
If you’re working on a big project, Wrike’s Kanban board lets you break it down into smaller phases or stages. You can see if something’s stuck and move things around so the work keeps flowing. It keeps things smooth and makes sure nothing stops the whole process.
Supply chain operations management
Supply chain operations management is all about making sure products move smoothly through every stage of the supply chain, from suppliers to manufacturers, then to warehouses, and finally to stores or directly to customers.
It oversees the entire supply chain to minimize costs and maximize efficiency. Coordination and collaboration across different segments ensures that customers get what they want, when they want it.
Inventory operations management
Inventory operations management focuses on the efficient management of inventory levels. This type of operations management is important in industries where inventory plays a significant role, such as retail, manufacturing, and e-commerce.
You’ve got to keep enough stock so customers find what they need when they need it, but not so much that your storage costs go through the roof. To do this effectively, you should have a central spot where you can see everything about your inventory: what’s flying off the shelves, what’s gathering dust, and when it’s time to reorder.
Wrike’s dashboards can be a handy tool here, helping pull all this information together and making it easier to keep your inventory lean but not too lean. With Wrike, you’re not just guessing when to order more products or which items are your bestsellers. The dashboard shows you real numbers and trends, helping you make informed decisions.
And if you need to adjust your team’s focus, say, to handle a sudden spike in demand for a hot product, Wrike’s intuitive workload charts let you redistribute tasks with a simple drag-and-drop action.
The role of operations managers
So, what does it really take to be an operations manager?
Operations managers analyze market trends, assess competitors, and identify growth opportunities. Based on this analysis, they develop strategic plans, set objectives, and allocate resources to achieve organizational goals.
Here’s a closer look at their functions:
- Process optimization: Operations managers are relentless in their pursuit of efficiency. They meticulously analyze current processes to identify bottlenecks and implement improvements. This could mean reorganizing workflows, introducing automation, or adopting Lean manufacturing principles to reduce waste and increase productivity.
- Resource allocation: They master the art of resource management, ensuring that every project or task has the necessary inputs — be they human resources, materials, or finances.
- Quality assurance: Maintaining the highest quality standards is non-negotiable. Operations managers establish rigorous quality control protocols to ensure that every product or service meets the organization’s and customers’ standards.
- Team leadership: Beyond managing processes and systems, operations managers lead teams. They are responsible for hiring, training, and motivating employees, creating an environment where teamwork and productivity thrive.
- Strategic planning: Operations managers forecast demand, assess market trends, and prepare the operation to meet future challenges. This includes capacity planning, supply chain management, and investment in new technologies or methodologies.
- Risk management: Whether it’s supply chain disruptions, equipment failures, or changes in market demand, operations managers identify risks and develop mitigation strategies to keep the business on track.
- Customer satisfaction: Operations managers streamline the delivery of products and services, ensuring that customers’ needs are met promptly and efficiently.
Modern trends in operations management
So, what’s new in how companies work? From robots in the warehouse to meetings in the cloud, things are changing fast. Operations management is a dynamic field that constantly evolves to meet the changing needs of businesses.
Several trends have emerged in recent years that are reshaping how organizations approach their operations. Here are a few of them:
Technology
Automation, robotics, AI, and data analytics have impacted business processes, including production, inventory management, and supply chain optimization.
Keeping up with all the moving parts can be tough when running a business. According to Wrike’s efficiency report, 82% of business leaders say their teams already use AI in their software applications. And more than 80% are planning to dig deeper into their pockets to make the most of AI and automation.
These advancements improve operations management by automating tasks like scheduling and inventory tracking, reducing errors, and freeing employees for higher-value work.
If you want to zoom in on what the experts are saying, Alexey Korotich, Wrike’s Chief Product Officer, recently made some predictions about generative AI.
Organizations will shift from experimentation to working with artificial intelligence more meaningfully. AI will help companies analyze and connect many data sources, creating more transparency and providing critical insights that ultimately help teams make better decisions.
Alexey Korotich, Chief Product Officer
It means less time digging for what you need and more time doing the stuff that really counts.
Sustainability and green energy
How are businesses weaving sustainability into their operations?
With growing concerns about environmental sustainability, operations managers are increasingly focusing on adopting eco-friendly practices. Green operations management minimizes waste, reduces energy consumption, and implements sustainable manufacturing processes. For example, implementing energy-efficient technologies and practices can reduce energy costs and create a more sustainable business model.
What’s more, customers are becoming more environmentally conscious and are actively seeking out businesses that prioritize sustainability. By incorporating green practices into their operations, organizations can attract environmentally conscious consumers and gain a competitive advantage in the market.
Globalization
How does a decision made thousands of miles away affect your local market? Operations managers face the challenges of managing global supply chains and international operations. They need to navigate cultural differences, legal requirements, and logistics complexities.
This requires a deep understanding of international markets and effective communication and collaboration with stakeholders from different cultural backgrounds. Decision making in this context involves balancing various factors to optimize global operations and address local market needs.
Despite the challenges, globalization also presents opportunities for organizations to expand their reach and access new markets. Organizations can tap into new customer bases and achieve economies of scale by effectively managing global operations.
By keeping up with modern trends and embracing advancements in technology and sustainability, operations managers can continue to enhance productivity, improve customer satisfaction, and contribute to the long-term success of their organizations.
Leveraging the right operations management tools
And that’s a wrap! We’ve covered a lot of ground. From understanding the basics to exploring various types of operations management, we’ve seen how this field keeps the wheels of business turning smoothly.
But what does this all mean for you? Maybe you’re an operations manager, a business owner, or an entrepreneur aiming to optimize your processes? It means the secret to keeping your business wheels turning are the everyday tools that bring your operations to life.
Wrike offers operations management solutions in several ways:
- You can see the big picture and the tiny details all in one place with dashboards that track your projects.
- You can see how your teams fit into various projects, ensuring you’re always in the loop through cross-tagging.
- You can cut through the noise of miscommunication with request forms that capture all the info you need upfront. Gone are the days of back-and-forth emails trying to gather project essentials. Now, you can kick-start your operations with all the details from the get-go, ensuring every team member knows exactly what to do and when.
- You can take advantage of powerful data analysis tools that help you track performance metrics and trends. This helps you make smart decisions with up-to-date info, so you can fix problems fast and keep your processes running smoothly.
Matt Andrews, Marketing Campaign Manager at Aerotek, succinctly captures the impact of using Wrike into your daily workflows.
Rather than a call or email resulting in a longer call or meeting, they now go to Wrike and fill out a very robust request form. It creates the job your team is going to work on from start to finish.
Matt Andrews, Marketing Campaign Manager
Whether you’re fine-tuning your current operations or steering your business into new territories, remember that tools like Wrike support you every step of the way. Why not take the first step today?
Start your free trial with Wrike and see how it can transform your operations management for the better.
Operations management FAQs
Do I need advanced degrees to be an operations manager?
No, advanced degrees — either a bachelor’s or a master’s qualifications— are not strictly necessary to become an operations manager. But understanding the fundamentals of business is crucial for success. A degree in business management or similar can give you a good foundation, covering essential concepts and business practices. This includes understanding operations, finance, time management, strategy, and developing leadership skills.
While an advanced degree like a Master of Business Administration (MBA) can further enhance your credentials and competitiveness in the job market, experience, professional certifications, and continuous learning can also lead to a successful career in operations management.
What is the job outlook for operations managers?
According to the Bureau of Labor Statistics, operations management is a growing field with strong job prospects and competitive salaries. Operations managers earn a median salary of around $101,280, with the potential for higher earnings based on experience and location. For example, in California, operations management professionals earn a median annual salary of around $155,170, which is higher than the national average.
What are two goals of operations management?
While operations management has several key goals, two primary ones are improving efficiency and enhancing productivity. Improving efficiency focuses on streamlining processes to cut down on waste and costs. Enhancing productivity aims at increasing output and optimizing resource use. Indirectly, these goals contribute to other important outcomes, such as boosting profitability, ensuring customer satisfaction, and supporting overall business growth.
What makes a good operations manager?
A good operations manager is skilled at solving problems and planning, making sure everything runs smoothly. They’re organized, communicate well with their team, and are always looking for ways to improve and adapt to new challenges.
What are some operations management examples?
Operations management examples include managing supply chains in a manufacturing company, overseeing service delivery in a retail business, and optimizing workflow processes in a tech firm. Each example involves applying principles of operations management to improve efficiency, reduce costs, increase profits, and enhance overall performance.
Explain project management vs. operations management
Project management focuses on achieving specific goals within a set time frame, handling unique, temporary projects. Operations management, in contrast, deals with the ongoing, everyday processes that keep a business running smoothly. In other words, project management is about completing particular projects, and operations management is about maintaining and improving regular business functions.
How can I stay updated on the latest advancements in the operations management field?
Check out scientific journals like “Operations and Supply Chain Management” and “Production and Operations Management.” These journals offer valuable insights and research on topics such as supply chain optimization, production processes, and overall operations management strategies.
If you want to upskill in more specialized areas of operations management, you can search for resources tailored to your specific branch of the trade. For example, if you’re in supply chain operations, you might look into things like SCOR (supply chain operations reference), which is a model for improving and communicating supply chain management practices.
