Operational Management: Definition, Function, and Scope
Table of contents
What is operational management? Definition of Operational Management in general is a maximum management effort in the use of various production factors, from human resources, machinery, tools, raw materials, and other production factors in the process of turning them into various products goods or services.
Operational Management becomes an important thing in an organization or business (read: Understanding Management). And the task also depends on the size of the company. Management of operational management starts from HR, equipment, machinery, raw materials and other things that have an influence on the company’s performance.
Operational management generally plays a role in the issue of strategic issues in determining manufacturing plans as well as project management methods and the implementation of information technology network structures. On the other hand, they also do the following important things:
Operational management must also study the raw materials used for production and ensure that there are no futile advantages. They have a formula for ordering the amount of material needed so that it fits the needs of the company.
Some experts in the field of management explain the definition of Operational Management, including:
According to Eddy Herjanto, the notion of operational management is a continuous and effective process in using management functions to integrate various resources efficiently in order to achieve goals.
According to Jay Heizer and Barry Render, the notion of operational management is a series of activities that produce value in the form of goods and services by converting inputs into outputs.
According to Pangestu Subagyo, the notion of operational management is the application of management science to regulate all production or operational activities so that it can be carried out efficiently.
According to William J. Stevenson, the notion of operational management is a management system or a series of processes in making products or providing services.
According to Richard L. Daft, the definition of operational management is a field of management that focuses on the production of goods, and uses special tools and techniques to solve production problems.
According to James Evans and David Collier, the definition of operational management is science and art to ensure that goods and services are created and successfully sent to customers.
After knowing the meaning of Operational Management, of course we also need to know the scope. There are several interrelated aspects in the scope of operational management, including:
This aspect aims to produce products in accordance with consumer expectations, ranging from quality, price, and profitability.
These are aspects related to the control of the plan that have been made to fit the stated objectives. That way, the planned goals can be achieved well and the results are optimal.
This is an aspect where the information must be well received and obtained appropriately so that production activities can take place effectively and efficiently. This information system is divided into three parts, including; internal information, customer information, and market information.
Environmental aspects play a role in paying attention to trends and developments that occur in an environment. That way, actions taken can provide benefits in increasing production.
If it is adjusted to the understanding of operational management, a manager must really understand the whole process that is in the company. They were involved in the matter of coordinating the process and the latest development while reevaluating its structure.
In this case, organization and productivity are the things that are most needed when becoming an operational manager. He must be able to be in a very flexible position.
Operational Managers have the main tasks in the production process, including:
In general there are four types of Operational Management functions, including:
Supply chain is defined by logistics. This field is related to the process of production and distribution of goods. In this case, “supply chain” regulates the distribution of goods to suppliers, manufacturers and retailers so that they reach consumers.
The point is “supply chain” is always directly related to the finished product and sending things related to the company as goods needed in the company.
Operational management is very closely related to “supply chain” or supply chain management. They must understand global and local trends, understand consumer demand and the capacity of production materials.
Responsible for Delivering Production
The big portion that must be the responsibility of this management is to become the main distributor or distributor of production to consumers. They must ensure the product reaches a certain period of time.
In addition, this department will carry out quality control directly to consumers whether it is feasible and meets their needs. They will then receive direct feedback from consumers and distribute this information as a development process.
At first glance, this management is limited to physical products. Of course you will be confused with two things when typing an organization or company always has two types; production of stored goods and services.
Here are two striking differences. When it’s about the production of physical goods, consumers are not directly involved in contact and they are separated by the shipping process and eventually they buy the product directly through the reseller or retailer. However, in terms of service, consumers can get involved directly seeing the service process.