Advantages and Disadvantages of Operations Management

Operations management is a term used to describe the processes concerned with planning, organizing, and supervising the overall production process.

This process was initially developed to help facilities improve the collaboration between various processes of the organization. Operations management is usually delivery-focused, which means that the facility will use these processes to ensure that production is carried out in the most efficient manner possible to deliver its goods on time.

There are 2 key terms that help define Operations Management: Supply Chain Management and Logistics. With a firm basis in these areas, Operations Management ensures that resources are utilized carefully by reducing waste and implementing cost-effective decision making strategies.

As Operations Management has become key for manufacturing operations around the globe, it is important to understand the advantages and disadvantages associated with the process.

Advantages of Operations Management

Overall, operations management is a key factor for manufacturing organizations that wish to take their production to the next level.  Some notable advantages include:

• Profitability Management: When your operations are properly managed, it is easier for your company’s executives to rely on the production activity to get a better understanding of your revenue stream. They are then able to rely on that consistent information to find new ways to increase sales or come up with new product ideas.
• Better Resource Management: Operations management processes focus on effectively managing all of your resources to ensure that their potential is being maximized. Resources can include physical machines as well as labor resources.
• Competitive Advantage: Being able to coordinate the multiple levels and components of your manufacturing organization means that things will run much more smoothly. Your production time will likely decrease, allowing you to deliver goods on time which is a crucial aspect of having great customer relations. This will allow you to promptly deliver great products and keep you ahead of the competition.

Disadvantages of Operations Management

With any process, it is important to consider the disadvantages that can occur:

• Multi-Level Dependency: One of the main disadvantages is that a large amount of the success of implementing operations management procedures requires coordination between the different components of the organization. Even if an effective plan is put in place, it will fail if it is not carried out in the proper manner by all components.
• Human Error: Another prevalent problem within manufacturing operations is the fact that humans tend to be mistake-prone. Most of the time, this issue occurs during the transition from manufacturing to sale. Because of this, it is important to ensure that operations management is coordinating various areas effectively such as operations, marketing, finances, accounting, engineering, information, and human resources.

Overall, if the individual components within the organization are not working well together, there will only be a limited amount of success emerging from operations management processes. A software that is becoming extremely common among manufacturing operations is advanced planning and scheduling software. These softwares can provide thorough insight within the various components of the production operations. APS softwares like PlanetTogether will take your facility to the next level by helping you optimize and increase the efficiency of your operations.

We’re able to make strategic decisions that improve operations. We can proactively prepare for anticipated increases or slowdowns in demand.

DICK MARX, MATERIALS MANAGER, KNAPHEIDE TRUCK EQUIPMENT

 

Advanced Planning and Scheduling (APS)

Advanced Planning and Scheduling Softwares have become a must for modern-day manufacturing operations as customer demand for increased product assortment, fast delivery, and downward cost pressures become prevalent. These systems help planners save time while providing greater agility in updating ever-changing priorities, production schedules, and inventory plans. APS Systems can be quickly integrated with an ERP/MRP software to fill the gaps where these systems lack planning and scheduling flexibility, accuracy, and efficiency.

With PlanetTogether you can:

• Create optimized schedules that balance production efficiency and delivery performance
• Maximize throughput on bottleneck resources to increase revenue
• Synchronize supply with demand to reduce inventories
• Provide company-wide visibility to resource capacity
• Enable scenario data-driven decision making

The implementation of an Advanced Planning and Scheduling (APS) Software will take your manufacturing operations to the next level of production efficiency by taking advantage of the operational data you already possess in your ERP system. APS is a step in the right direction of efficiency and lean manufacturing production enhancement. Try out a free trial or a demo.