Current Challenges for Operations Management

6/2/21 12:00 AM

Every aspect of a business is affected by operations. When a company wants to operate smoothly, grow their business, satisfy customers, and make money, operations management is at work.

Operations management involves planning, organizing, and supervising in the context of production and manufacturing. Good operations management enables a company to be efficient and effective by using the fewest resources and meeting customer demands. In essence, operations management highlights the link between process and value. 

Current Challenges for Operations Managements

With increasing customer expectations and the decreasing supply of some resources, operations management has become increasingly important for the success and profitability of businesses. Effective and adequate operations management bring more accountability and accuracy that allows for the successful delivery of goods and services. 

While operations management has aided production facilities immensely, there are still some challenges that operations managers face on a daily basis. The field of operations management is challenging and requires a deep understanding of the business processes to allow operations managers to deliver value to their customers. 

Current Challenges for Operations Management

There are multiple challenges that operations managers face frequently:

  1. Globalization - Globalization is defined as the process by which businesses interact with people, companies, and governments on an international scale. This is being driven by the reduction of trade barriers, advancements in information/transportation technology, and more. The benefit of globalization is that there is more interactions between different populations around the globe and allows companies to reach a wider market. However, operations managers have found themselves facing competition not only from their country of origin, but from countries all around the globe. To maintain their competitive advantage, operations managers must keep up with the trends and software technology available to help increase their production. 
  2. Sustainability -Sustainability is a frequent issue discussed among various news outlets - with manufacturing being one of the largest factors contributing to conversation. There is much debate over whether or not we will have the appropriate amount of resources needed in order to have a sustainable future. When discussing the concept of sustainability, the three pillars of sustainable usually come into play, which include social, environmental, and economic. Operations managers need to be aware of the outcomes of each of these pillars, including how their production facility or work will affect these factors. Effective operations management will implement practices that will address these concerns pertaining to sustainability
  3. Effective Communication - Consistency and effectiveness of communication is extremely difficult within organizations. The challenge for operations managers is to be able to communicate effectively with all internal and external stakeholders. This will ultimately allow for more thorough transparency within your production facility, which will aid your factory floor immensely. Having everyone on the same page can boost efficiency within your manufacturing operation with ease and operations management needs to look into softwares that can make this much simpler for them. Effective communication is a must for manufacturing facilities that are seeking to boost operational efficiency in areas such as demand planning, demand forecasting, using the plan/forecast, and ultimately implementing this into a proper production plan.
  4. Ethical Conduct - Ethics is defined as a subset of business ethics that is meant to ensure that production functions or activities are not damaging to people or society. Understanding the ethics of business will ensure that you will not fall out of line in terms of keeping the people and environment of your business safe. Unethical behavior has contributed to the demise of various companies around the globe - which is why understanding them is so important. Being ethical across all functions of your business will ensure that your operation runs smoothly and that you will not turn into one of the companies that have failed due to this.

the challenges of operations management

As resource availability becomes scarce and customers' demands increase, the field of operations management will become even more important to ensure that the organization delivers quality products to their customers.  

 

We feed [PlanetTogether] the facts we know, and it automatically proposes an optimized schedule that allows us to meet those dates. It’s something we tried, but could never do manually.

DICK MARX, MATERIALS MANAGER, KNAPHEIDE TRUCK EQUIPMENT

 

PlanetTogether's Advanced Planning and Scheduling (APS) Software can help operations managers navigate through the previously mentioned challenges. This software allows manufacturing facilities to have a visual representation of their production schedule and can help with reducing waste, increase profits, and boost production efficiency. This software can be implemented in production facilities around the globe to help then take their operation to the next level.  

 

Advanced Planning and Scheduling Software

Advanced Planning and Scheduling (APS) software has 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 gaps where these system lack planning and scheduling flexibility, accuracy, and efficiency. 

With APS you can: 

  • Create optimized schedules balancing production efficiency and delivery performance
  • Maximize output on bottleneck resources to increase revenue
  • Synchronize supply with demand to reduce inventories
  • Provide company-wide visibility to 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 demo!

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Topics: challenges in supply chain, operations management

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