Operational Management: What It Is, How It Works and Advantages

THE operational management It is an essential discipline for the success of any organization, being responsible for coordinating, controlling and supervising daily production and service processes.

This branch of management focuses on the efficiency and effectiveness of operations, ensuring that resources are used in the best possible way to achieve business objectives.

In today's text, we'll highlight the main points of this type of management. So, read on to learn more!

What is operational management?

Operational management is the area of administration that deals with planning, organizing and supervising the production of goods and services.

This function encompasses the management of human, material and technological resources, aiming to improve quality, reduce costs and increase productivity.

In short, this process ensures that all of the company's operational activities are carried out efficiently.

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How does it work?

Operational management works through a set of practices and processes that aim to optimize the company's operations.

Its main activities include production planning, quality control, inventory management and logistics.

These functions are interconnected and must work in harmony to achieve the best results.

Production planning involves defining which products will be manufactured, in what quantity and with what resources.

While quality control ensures that products meet the required standards, avoiding waste and rework.

Inventory management, in turn, is responsible for maintaining a balance between supply and demand, avoiding excess or shortages of products.

Logistics takes care of the storage and transportation of materials, ensuring they arrive at their final destination on time and in the appropriate conditions.

Furthermore, the operational management involves the implementation of information systems that help monitor and analyze the performance of operations.

Tools like ERP (Enterprise Resource Planning) and supply chain management (SCM) systems are crucial for integrating different areas of the company and providing real-time data for decision-making.

What are the advantages of operational management?

Implement a operational management efficient brings several advantages to companies.

Firstly, it contributes to cost reduction by optimizing the use of available resources, minimizing waste.

Furthermore, it improves the quality of products and services, as there is strict control over production processes.

Another significant advantage is increased productivity. With well-defined and coordinated processes, teams work more efficiently, producing more in less time.

This action results in greater competitiveness in the market, as the company is able to meet customer demands with greater agility and precision.

Additionally, operational management promotes customer satisfaction, as it ensures the delivery of quality products and services within the stipulated deadlines.

A study by McKinsey consulting reveals that companies with well-managed operational processes are 20% more likely to outperform their competitors in terms of customer satisfaction and profitability.

The implementation of sustainable practices in operational management It can also bring additional benefits, such as reducing the company's environmental footprint and improving its corporate image.

Therefore, investing in green technologies and eco-efficient processes not only contributes to sustainability but can also result in significant savings in the long term.

Some challenges

While the benefits are numerous, operational management also faces challenges. The need for constant innovation and adaptation to market changes can be a daunting task, for example.

Keeping up to date with new technologies and methodologies requires investment in employee training and development.

Another challenge is resistance to change within the organization. Implementing new operational practices may encounter resistance from employees accustomed to old processes.

Therefore, it is crucial to have effective communication and a well-structured change management plan to overcome these barriers.

Information Table: Elements of Operational Management

Element	Description	Benefits
Production Planning	Definition of products, quantities and resources required.	Efficiency, waste reduction
Quality control	Monitoring and ensuring quality standards.	Improved quality, reduced rework
Inventory Management	Maintaining the balance between supply and demand.	Minimizing costs, preventing excesses/shortages
Logistics	Storage and transportation of materials.	On-time delivery, maintaining product integrity
Information Systems	Tools for monitoring and analyzing operations.	Real-time data, decision support
Sustainability	Implementation of eco-efficient practices.	Reduced environmental footprint, long-term savings

Conclusion

In a scenario of constant evolution and high competitiveness, operational management becomes a strategic differentiator for companies.

By ensuring the efficiency of internal processes, it not only reduces costs and increases productivity, but also improves the quality of the products and services offered.

With well-implemented operational management, companies are better prepared to face market challenges and achieve long-term success.

Operational management is not a static concept. It must continually evolve, incorporating new technologies and methodologies to adapt to market changes and customer needs.

This ensures the company's competitiveness and sustainability in the future. By implementing efficient operational management, companies can achieve a prominent position in the market, offering high-quality products and services, meeting customer expectations, and, consequently, increasing their profitability.

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