Download - Role of Operations Manager
-
7/29/2019 Role of Operations Manager
1/3
Role of Operations Manager
The operations Manager is th key figure in the system. He has the ultimate responsibility for the
creation of goods or provision of services. The kinds of jobs that operation manager oversees
vary from one organization to organization largely because of the different products/services
involved. Thus managing a Banking operation required a different kind of expertise than
managing a steel making operation. But in both cases they are managers. In every case, the
Operation manager must coordinate the use of resources through the management process of
planning, organizing, staffing, directing and controlling. However the major functions of
Operations manager are:
Planning it involves
Capacity Planning
Location Planning
Product and services planning
Make or Buy
Layout
Scheduling
Projects
Organising it involves
Degree of centralization
Process Selection
Staffing it involves
Hiring/ Layoff
Use of overtime
Directingit involves
Incentive plans
Issuance of work orders
-
7/29/2019 Role of Operations Manager
2/3
Job assignment
Controlling / Improving
Inventory
Quality
Cost
Productivity
-
7/29/2019 Role of Operations Manager
3/3
Challenges faced by Operation Manager
1. Coordinating the relationships between mutually supportive but separateorganizations Recently due to availability of fast and inexpensive communications,
business firms are now going for contract manufacturing. The contract manufacturers
are the firms that specialize in performing focused manufacturing activities. Companies
are now focusing on their core competencies and outsourcing the other functions like
information systems, product development and design, engineering services, packaging,
testing and distribution etc. The ability to coordinate these activities is a significant
challenge for the operation manager.
2. Optimizing global supplier, production and distribution networks - An operationmanager may face problems due to global suppliers, production in some other countries
and distribution of the product across different countries. This requires a careful
understanding of where control should be centralized and where autonomy is
important, among other issues. An operation manager has to take advantage of this
information system to optimally control such resources as inventory, transportation and
production equipments.
3. Increased co-production of goods and services - The Internet has opened new ways forthe customer to interact directly with a firm. A customer can monitor the progress of
order, placed by him or he can register his complaint on the companys websites. How
to provide efficient service to the customer is a challenge for an Operation manager.
4. Managing customer touch point A company can become efficient by providingcustomer support personnel, help lines and checkout counters. This increases cost of
staffing. An operation manager has to utilize the resources effectively by comparing
implicit cost of lost customers as well as direct costs of staffing.
5. Raising senior management awareness of operations as a significant competitiveweapon This is a challenge to the operation manager to increase the awareness of
senior management who may be having finance, marketing or different backgrounds
regarding operations can be used as a significant competitive advantage. E.g. Tata Nano,
Indigo Airlines.