In a business, there is the term operational management. Where, operational management is very important for a business. Namely as a controller of production activities.
This is because every business definitely needs supervision. Starting from finance, production, to marketing.
Management itself is planning, with the focus point of production activities.
While his job is to ensure that production runs as it should.
In addition, management also ensures that the production process is maintained and runs according to plan. In this case, the operational manager has full responsibility.
A manager though oversees, manages operational processes. Starting from the conversion of raw materials, energy, power to become a product. Whether it’s a product or a service. In accordance with the field of the company.
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Simply put, being able to turn inputs into outputs according to plan. Thus, we can say, that the position of the manager has a very important role in the business world.
This is because operations are one of the company’s strategic functions. The strategic function consists of 3. Namely finance , marketing, to operations.
The following is the definition of operational management according to some experts:
Richard L. Darft
Richard L. Darft argues that operational management is an area of regulation or management that is specifically concerned with the production of goods or services.
And also use techniques and tools to provide solutions to production problems.
Sofyan Assauri
The second opinion is according to Sofyan Assauri. In a book, he said, in economics, there are factors of production. Starting from capital, land, labor, and finally skills.
And according to him too, there are 4 types of production. Namely, processes, services, planning, and control.
Process is a technique or method used to process materials. Service or service is an organizational body in charge of establishing techniques, so that the process can be used effectively.
While planning is the correlation or organizational relationship with production activities.
Lastly, supervision. This control is useful to ensure the ingredients are processed properly.
Eddy Herjanto
According to Eddy Herjanto, operational management is an activity that is closely related to the execution of services, the manufacture of goods or a combination thereof, by going through a transformation process.
Initially, it was only a production resource until it turned into the desired output.
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Pangestu Subagyo
Pangestu Subagyo said, operational management is the application of management knowledge in managing production or operation activities. This is so that production activities can run efficiently.
Operational Management Objectives
Actually, what is the purpose of this management? In general, there are five management objectives.
Namely, to increase the efficiency of the company, or what is often called efficiency .
Then, it aims to minimize expenses, increase productivity figures, and control the production process as efficiently as possible.
1. Helping companies achieve goals
Operational management assists companies in achieving company goals.
Even though management is able to ensure that all production activities or activities run optimally as they should.
2. Helps increase worker productivity
Operations management helps workers be more productive. The manager is the person in charge who has a big obligation. That is educating its employees so that they can maximize their work.
With these two goals, it will have an impact on increasing the work motivation of employees and the emergence of good intentions.
Where, both are needed by companies to carry out the entire production process and provide maximum results to all consumers.
Therefore, the responsibility and role of the operational management section manager is very large.
Thus, we can conclude, that operational management has four main functions.
Namely planning, reviewing, organizing, and the last is supervision.
Characteristics of Operational Management
If we pay attention, operation management has several characteristics. Like:
Intended to produce goods or services
One of the most obvious characteristics is to produce goods or services.
So, when you feel overwhelmed about the various systems that exist in each company. So there is no need to be confused, because you just have to recognize the characteristics.
That is, does the system aim to fully regulate services? Or set the process of running the production of goods?
There is an operating control mechanism
The second characteristic is that there is a special, regular, or certain mechanism to control the operating process. The stages of operation even though it is applied to all divisions.
This aims to reduce waste later, improve the quality of goods or services, to increase sales figures.
There are activities that involve the process of transformation
In a business, there is what is known as the ‘transformation process’. But actually, what is the process of transformation?
So, the transformation process itself is an activity that takes one or more inputs, then adds value to it, and provides output for the client or customer.
So, if the input is a raw material, of course it will be easy to identify the transformation.
For example, when milk is changed into the form of other objects. Butter with cheese for example. Meanwhile, if the input is in the form of humans or information, of course it will be very difficult to see the transformation.
Because it would be very difficult to measure. The simplest example is a hospital that turns its patient into a healer.
The input is sick patients. While the expected output or transformation is that the patient recovers.
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The scope of operational management
Operational management has several scopes. Which, each aspect has its own role in the company. With the goal, so that the company’s goals can be achieved optimally.
Planning
The first scope is planning. The scope of planning will try as much as possible to produce services or goods in accordance with consumer expectations. Both in terms of quality, price, profit, and so forth.
The most important thing is to plan how much operational costs will be used to carry out the company’s operational activities.
Control
The second scope is control. The scope of control itself relates to the control of production plans. The goal is that the company’s goals can be achieved optimally.
Production information system
As the name implies, this one scope will require operational management to provide, process various information in the company precisely, quickly and accurately. The information system is then divided into 3 systems.
Namely internal, market, and customer information. The three information systems are managed very well though. This is so that production activities work optimally.
functional
Another aspect, or other scope is functional. The functional aspect is closely related to the organizational or managerial activities of all components.
While the interaction will be referred to as ‘functional aspects’. This activity includes planning, controlling, implementing, and repairing.
Structural
Structural deals with the arrangement of components in a company. The aim is to build an integrated management system, and can also interact with one another.
Environment
The last scope is the environment. The environment is also one area that must be considered. Because even though operational management can see the potential around it in order to increase production.
So, we can conclude that the entire scope of operational management has the same goal.
Namely to improve product quality and company productivity.
A company that has good operational management must also be supported by sophisticated information system technology.