"The elevator to success is out of order. You'll have to use the stairs... one step at a time." ~ Joe Girard
We are highly profitable and enjoy a growing cash flow from operations because we are constantly INCREASING operational efficiency while REDUCING operational costs. THINK: Yes or No?
Customer Experience... Employee Safety... Facility/Equipment... Managing Expenses... Operation Processes... Shipping/Delivery... Work Flow/Design...
According to the U.S. Department of Commerce, Operations Management is the area of management concerned with overseeing, designing and redesigning business operations in the production of goods and/or services.
Operations management focuses on carefully managing the processes to produce and distribute products and services... ensuring that business operations are efficient in terms of using as little resources as needed and effective in terms of meeting customer requirements. People skills, creativity, rational analysis, and knowledge of technology are all required for success in this area of business management.
In a very real sense, Operations Management is directly responsible for the Profits or Losses within a company. At some point in the evolution of your business, you must address and master Operational Management if you want to turn your business into a true goldmine.
Primarily, this function is concerned with managing and directing the physical and/or technical aspects of a firm or organization — particularly those relating to manufacturing and production systems — plant management, equipment maintenance, production control, industrial labor relations, skilled trades supervision, strategic manufacturing policy, systems analysis, productivity analysis, cost control and materials planning.
Related activities include managing purchases, supply chain management, inventory control systems, quality control systems, storage, Enterprise Resource Planning (ERP), logistics, transportation management and evaluations of core business processes.
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A great deal of focus is on EFFICIENCY and EFFECTIVENESS of processes and facilities, such as buildings, computer systems, signage, lighting, etc. Therefore, operations management often includes substantial measurement and analysis of internal processes. Ultimately, the nature of how operations management is carried out in an organization depends very much on the nature of the products or services in the organization, for example, on retail, manufacturing or wholesale.
"The measure of success is not whether you have a tough problem to deal with, but whether it's the same problem you had last year." ~ John Foster Dulles
Effective operations management provides the potential to improve both efficiency and customer service simultaneously.
Ultimately, Operations Management is all about followthrough. It is about making sure that all your policies and procedures are being followed to the T. It is about management by walking around and seeing what is working and what is not working. From merchandising and plying your wares in the most favorable light possible, to making sure your people are all doing their jobs — WOWING customers with each interaction while staying within guidelines (hours, costs, etc.).
Once your business hits $1-2 million each year in sales you must recognize that future success is completely predicated on this critical area of business management.
Clearly, delivering WOW customer products and services — while minimizing COSTS and optimizing PROFITS — is what the Operation Management function is really about.
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This Golden Function is composed of the following sub-functions and actions — things which must be done to guarantee your success.
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