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7 Functions of Operations Management

The document outlines the seven key functions of operations management: operational planning, finance, product design, quality control, forecasting, strategy, and supply chain management. It describes operational planning as the foundational function, involving monitoring production, inventory, team performance and production planning. Finance is also essential, with tasks like creating budgets to meet goals, finding investments, and allocating resources. For product design, the operations team gathers market information and shares it with designers to help them create strong products that meet customer needs.

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Michelle Amihan
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4K views4 pages

7 Functions of Operations Management

The document outlines the seven key functions of operations management: operational planning, finance, product design, quality control, forecasting, strategy, and supply chain management. It describes operational planning as the foundational function, involving monitoring production, inventory, team performance and production planning. Finance is also essential, with tasks like creating budgets to meet goals, finding investments, and allocating resources. For product design, the operations team gathers market information and shares it with designers to help them create strong products that meet customer needs.

Uploaded by

Michelle Amihan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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7 functions of operations management

(plus the skills you need to master


them)
Summary

Companies have operations departments to keep everyday functions on track. The operations
department focuses on maintaining the efficiency of the production process and helps teams
make smart decisions. In this piece, you’ll learn the seven functions of operations management.
These functions outline the essential duties of the operations team.
Operations management keeps processes running smoothly within organizations. Think
of your company as an airport. Each team is an airplane taking off in different directions
with their projects and ideas. As an operations manager, you’re the air traffic controller
keeping everyone and everything on track. 

An air traffic controller monitors things like weather, flight movement, and pilot
communications. Similarly, there are seven functions of operations management. 

 Operational planning

 Finance 

 Product design

 Quality control

 Forecasting

 Strategy

 Supply chain management


1. Operational planning
Operational planning is the foundational function of operations management. Your
duties within this function may include:

 Monitoring daily production of goods

 Managing and controlling your inventory

 Keeping tabs on team member performance and well being

 Production planning

The role of operations management is to uphold operational efficiency. Always be on the


lookout for new advancements to remove bottlenecks and improve your operations
strategy.

2. Finance
Finance is an essential—and universal—function of operations management because
every company strives to reduce costs and increase profits. As an operations manager,
you’ll ensure company leaders keep the budget in consideration when they make
important decisions. Some of your tasks may include:

 Creating budgets to meet production goals

 Finding investment opportunities

 Allocating budgets and managing resources


You may wonder how the financial duties of the operations team differ from those of the
finance department. The finance department will handle everything from revenue to
salaries. Meanwhile, you should limit your financial participation to things relevant to the
production process.

Skill needed: Financial planning


Financial planning happens when you determine if your business has the budget to
achieve strategic objectives and goals. To push your company leaders toward financial
success, you’ll need to plan ahead.

Keep production costs low by finding high-quality vendors with low prices. You want to
create a top-notch product that stays within your customer’s budget.

3. Product design
Product designers may be the creatives of the team, but the operations team is the eyes
and ears that gathers information from the market. Once you identify customer needs
and marketing trends, you'll relay what you've learned back to the designers so they can
make a strong product. 

Specific tasks your team may handle in this function include:

 Consolidating market research into digestible results

 Communicating results to a product design team

 Offering design direction to help designers devise a product


Without the operations team, the product design team would have trouble knowing what
to create. The market is always changing, and creating a successful finished product
requires extensive research.

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