1.1 What is Operations Management?

The field of operations management is such a varied and diverse one
that it can be difficult and even misleading to give a simple definition which adequately
sums up all of the activities and responsibilities involved. As you progress through this course, you will learn more about the different disciplines within the
field and, crucially, how the industry that you work in, or even the type of organisation that you work
for, can have differing expectations of how operations management is carried out within it.

One might define operations management as a corporate management discipline which primarily
focuses on the management of the tasks and processes required to produce, distribute and sell a
particular product or service .Of course, many factors are involved in this “cradle to grave” approach
and your role as an Operations Manager may be responsible for, or touch upon, some or all of these
areas, to a greater or lesser extent.

Here are some examples of areas that an Operations Manager might be involved in:

* Product or service creation

* Product or service development

* Production

* Distribution

* Purchasing and procurement

* Inventory control

* Quality control

* Facilities

* Storage

* Logistics

* Process analysis and evaluation

* Efficiency and effectiveness evaluation

Essentially, the overriding purpose of operations management is to support the effective processes
behind the eventual sale or a product or service, carefully managing their quality, schedule, time
and cost, in order to get the best results for the business. It brings together many different functions
of a business and oversees and co-ordinates them, to ensure that all areas and processes are running
smoothly and in correct tandem with each other for the benefit of the business.

As we have already mentioned, the industry that you are working in will have a big impact on the
style of operations management that you carry out, with the biggest determiner being whether your
business manufactures products or offers services.

For example

The Operations Manager of an organisation which makes car parts is likely to be heavily involved in
the manufacturing processes, supply chain, logistics, etc of the organisation, in order to support
getting the right and best product to market in the most efficient manner. On the other hand, if you are the Operations Manager for a chain of retail stores, your key
responsibilities are likely to be different.

You will possibly have more of a focus on the processes behind ensuring that the service offering of
the stores is up to scratch and meets company targets and expectations. You will learn more about
some of the main types of organisations that utilise the support of Operations Managers later in this
course, to prepare you for a career move into any of these areas.

For now, we will focus on the basic day to day activities involved in the general sense of operations
management.

These can be diverse and varied, and often include the following areas:

* Developing and managing quality assurance programmes for your business.

* Working to improve the operations processes and policies, such as organisation planning, management reporting, etc.

* Planning and controlling change programmes, such as restructuring or new lines of business.

* Managing and reviewing costs and setting of budgets.

* Formulating strategy and associated policies, supporting in the longer term direction of the
business.

* Controlling resources and overseeing the financial aspects of key activities.

* Being a key point of contact for various teams across the business, potentially line managing
key individuals.

* Support and possible deputation for the Managing Director or other key members of the senior
leadership team.

* Oversight of purchasing processes, particularly from a cost and quality perspective.

* Tracking of progress against agreed objectives and against agreed timelines, including pre- empting any delays or issues in a proactive manner.

* Regularly and reliably reporting progress back to stakeholders.

* Problem solving and damage limitation.

1.2 A Brief History of Operations Management

If we return to our original definition of operations management as
being the management of the processes and tasks to get a product and service out to the
market, we can confidently believe that it has existed, in one form or another, ever since
man has been creating items or services to sell to one another.

However, many believe that the key point in history in which operations management came to
resemble it as we know it in its current form was in the industrial revolution of the late 1700s and
1800s, which represents to many the birth of the modern economy, due to the increase of
manufacturing in high volumes.

From this time onwards, an increased focus was made on the importance of process, or the gains
that businesses could make from a cost, time and quality perspective, by implementing more
structured ways of operating across the board to achieve a greater sense of uniformity in the
finished products.

Of course, operations management at this time was much more linked to actual products than
services. From the 1960s onwards, many businesses, such as banks, retail organisations and utilities
companies, recognised the value that a focus on the operational effectiveness of their processes
could bring to them and their customers.

The field of operations management therefore expanded somewhat to the establishment of service
management and service operations as core subjects in the operations field.

This phenomenon continued in the 1980s and 1990s as digital technology became a force to be
reckoned with and started to revolutionise the way in which companies could improve their
operational effectiveness and, ever since, technology has been a big enabler in the field of
operations management - ordering systems, sales forecasting and planning and process
improvement have all been areas which have benefited from the ever developing software that
supports the operations management industry.

We will share more specific detail about how technology can impact and support your role, later on
in the course.

This brings us to the present day, where operations management is viewed, in many businesses, as a
crucial strategic enabler and a key part of the smooth running and operational success of an
organisation. Most large companies employ at least one Operations Manager - sometimes larger
companies have a team of individuals in this role, responsible for looking after different sections of
the business, such is the perceived importance of the position and the value that it can add.

Fact

Recent trends in the field of operations management
include Six Sigma (an approach to quality developed at Motorola between 1985 and1987).

Source: Wikipedia.

1.3 What are the skills and personal attributes required to
be a successful Operations Manager?

As the role of an Operations Manager is diverse, there are a variety
of different skill sets which are important to the role and will help you to succeed. The list below is not exhaustive and often, the type of industry or specific organisation will require
additional skills as well as some of the core attributes listed below:

Strong problem solving and decision making skills

As a key member of the senior management team of the business, as well as the fact that operations
management involves working on numerous different tasks, teams and projects, Operations
Managers must be able to demonstrate their leadership skills and have the ability to get stuck into
difficult problems and be the catalyst for change, where necessary.

A successful Operations Manager should be adept at working with ever changing and challenging
circumstances, with the ability to listen to all points of view and all possible outcomes, to resolve
difficult situations. Similarly, the ability to work under pressure is also desirable. This is not a role for somebody who
enjoys a desk or office based role and who prefers to work to a defined structure every day, due to
the constantly changing nature of the role and the requirement to be actively involved in firefighting
solutions.

A keen business sense

Good Operations Managers usually have a business background in one or more areas, such as sales, customer service, facilities, general management, or finance. This “on the ground” experience gives
them detailed knowledge of how the business works and helps them to have a well-rounded view, supporting their strategic initiatives. They will likely have experience of working closely with a
variety of stakeholders, such as other colleagues, customers, suppliers and managers.

Operations Managers who have a proven track record in roles in specific areas of a business and
who can offer advice, support and solutions from a position of prior experience, rather than just a
theoretical understanding, are likely to command credibility and the respect of the teams who work
with them.

Communication and negotiation skills

Due to the fact that one of the responsibilities of an Operations Manager is liaising with many
different people, including those performing a wide range of different roles and trades and
managing their expectations accordingly, they should have demonstrable communication skills. They
must be adept at managing expectations, delivering a difficult message and ensuring clarity at all
levels of the hierarchy.

From a negotiation perspective, they should be able to listen to all points of view, rationally analyse
their findings and clearly articulate their thoughts, with the aims of cooperation and compromise, where necessary.

Operation managers should also have exemplary listening skills. Effective listening is a very
important part of communication and one that is often overlooked. It is crucial in making sure that those working for you feel valued and supported and to ensure a
democratic style and culture in the business.

Time management skills and being able to work effectively under pressure.

A key attribute of a successful Operations Manager is the ability to manage time effectively, in order
to successfully meet the expectations of internal and external stakeholders and achieve agreed
deliverables on schedule, so as to avoid inconvenience, disruption and cost to the business.

To achieve this, managing one's own time, as well as the time of those reporting to the Operations
Manager, is key. Effective Operations Managers can delegate effectively and avoid the temptation to
micro manage their teams, but can also support the individuals who work for them to ensure that
they are on track, as failure to do so can have a direct impact upon the successful outcome of
business tasks.

In practice, this usually means that an Operations Manager is responsible for multiple
accountabilities or projects simultaneously, whilst also keeping any ad-hoc or business as usual
activity running smoothly. There are lots of modern techniques and technology that you can utilise to
support you in the organisation of such activities, such as Gannt charts - and we will touch on these
tools again, later on in this course.

Fact

Operations managers earn annual salaries between
£29,000 and £53,000. The average is £37,500.

Source:
Total Jobs website.

1.4 What does successful operations management look like?

As we have already discussed in this module, operations
management often includes complex and all-encompassing projects and activities - and
keeping all plates spinning at the same time can sometimes be a challenge.

Let's take a closer look at some of the tried and tested strategies that you could make use of in your
role:-

Taking a helicopter view

This means the natural ability to get the balance right between diving into the detail where it is
required, but otherwise being able to maintain an overview and perspective of the business or
particular part of it, so that you can make connections between different areas, pre-empt problems
or opportunities and generally rise above the detail of the situation to see the bigger picture that
others who are working with the detail may not be able to see.

Your business will employ specialists to take care of the detail of particular areas, but your role will
be to oversee this work and join the dots between different parts, in order to see things that those
individuals with less overall exposure cannot.

The confidence and flexibility to make changes where needed

Operations Managers are generally senior members of the leadership team of an organisation and
are therefore involved to a greater or lesser extent in the creation of the business plan or strategy - essentially, a vehicle to give all individuals working for the business a purpose and direction and
make it easier to track progress against key milestones.

Important as the setting of a thorough and detailed strategy is, a good Operations Manager knows
that it isn't necessarily set in stone.Sometimes, as a particular project or task develops, it become
obvious that the previously held ideas of how it would work out and what success would look like
could be incorrect or skewed. Effective operations management is about recognising when
something isn't working and about making quick adjustments, in order to mitigate risk and get back
on track.

An open culture must be cultivated, so that employees feel able to come forward if they encounter a
problem, or if a particular target is at risk of not being met fully or on time. This is crucial. Denial or trying to cover up an issue runs the risk of jeopardising the project as a whole and can
have big ramifications and knock on effects to other parts of the business. Even seemingly minor
issues or changes have the potential to affect the project plan, timeline and anticipated completion.

An effective Operations Manager needs to utilise the following skills in this type of
situation:

A “no blame” attitude and creation of this culture across the team, so that team members feel
comfortable to come forward and explain issues, as soon as they encounter them.

The confidence and flexibility to look at an unforeseen situation and change plans, workload, labour, etc, in order to mitigate risk and resolve the situation successfully.

The confidence to raise his or her own concerns with other senior managers, including the
Managing Director, even if it risks temporary issues, confusion, or delays.

1.5 Using negotiation to benefit the business

Without doubt, as an Operations Manager, you will be involved in
situations which require you to negotiate - be it with a colleague, customer, supplier, or
somebody else.

Here are some characteristics of good and poor negotiation and the impact that each can have:-

Good negotiation

It can help to resolve a potential conflict or difference of opinion between two or more other parties
in a situation. Left unchecked, such a conflict could have a big knock on effect on the outcome. This
is why it is preferable to raise issues in a calm, non-confrontational but assertive manner, as soon as
they become apparent. You can make potentially big cost savings by utilising good negotiation skills. Whether this means
that you pay less for the materials, equipment, staff, etc that your business needs, your bottom line
with thank you for taking the time to bargain for lower prices or improved quality/service from your
suppliers.

Bad negotiation (including a failure to negotiate at all)

It is sometimes tempting not to negotiate, especially if you are inexperienced in the area or the
prospect of it makes you uncomfortable - and this is a common plight for many business people.

However, it is worth remembering that a failure to negotiate to the best of your ability is likely to
mean that you won't achieve the most cost effective deal available on the purchases that you make
for your business, such as your materials, equipment and labour. This can have knock on effects, such as reducing your profit margins and even making you less competitive on price and quality than
your competitors.

Moving away from the cost impact, poor negotiation in a situation such as a difference of opinion in
the workplace can also have serious effects.Communication and a good working atmosphere are vital in order for a business to run smoothly.

It is important for you to iron out any potential sources of conflict early on. Failure to negotiate a
positive and mutually agreeable outcome in a difference of opinion can cause problems with
production, supply, or service. At the very least, it can leave an unpleasant culture in the team, which can have residual problems of its own.

1.6 The development and cultivation of great leadership
skills

The ability to motivate, direct and support other individuals is a
critical characteristic of an effective Operations Manager. As a large part of your role will not be carrying out a particular function, but instead, overseeing
others who do this and coordinating their work in a wider context, your ability to engage the key
individuals who work with you in the business will be important.

Leadership skills don't always come naturally to everyone - many refer to the characteristics as
being soft skills instead of the hard skills needed in a manual, shop floor role, for example and they
can't just be learned from a book, instead requiring conscientious practice and observation.

Key leadership skills include the following:

* Coaching, mentoring and motivating the different individuals that you work with

* Delegating effectively

* Communicating well - verbally, listening and in writing

* Being aware of and sensitive to the needs of other.

* Making difficult decisions, when needed
Collaborating with others

* Being decisive

* Remaining calm and responsible in highly pressured situations

* Developing and honing these skills well can take you the best part of your career in operations
management! But you will be glad of the investment, as it will pay great dividends in your reputation
and your effectiveness in your role.

Take a Quick Recap Test
[viralQuiz id=15]

Activity 1

Estimated time: 10 minutes

Review the important characteristics of good leaders.

Rate yourself out of five, for each point. For
any area in which you score yourself less than four, think of a practical way of improving your
performance in this area.

1.7 Beginning or developing your career in operations
management

It is true that there is no “one size fits all” route into a career in operations
management.

Much will depend on the following factors:

* The type of Operations Manager role that you are seeking, including the industry that it is in, the size of the business, the seniority of the role and the scope and breadth of the role

* Your own educational background

* Your own previous experience

* Your willingness or ability to take on further study and professional development in the area

For most roles in operations management, there are not any formal qualifications which are
mandatory, but a degree, HND, or other qualification can be useful and will demonstrate your
commitment to the area. In an interview, the interviewer will certainly want to see your enthusiasm
and ongoing commitment to your career, so evidence that you are pushing yourself and engaging
with continuous development in the field will be impressive.

Even if you already have a qualification in operations management, you may benefit from continuing
to be actively involved in learning the ever changing and ongoing developments in the field and
keeping yourself abreast of these changes, in order to maintain a competitive advantage in your
career.

Although no specific professional body exists in the UK for operations management, probably due to
the broad spectrum of areas that it covers, you may find some institutes helpful as sources of
professional support, guidance, or information. They can also be helpful for networking and building
contacts.

Suggested institutes:

* APICS - The Association for Supply Chain Management

* The Chartered Institute of Logistics and Transport

* BIFM - The Professional Body for Facilities Management
Additionally, apprenticeships can be an interesting way in which to gain both a good qualification
and some on the  job experience, whilst earning a living at the same time. You can contact your local careers office, or look online for local colleges that can support you with
making an application.

One of the advantages of apprenticeships is that they give you the opportunity to get a good, hands
on, look at the field in which you wish to work, gaining valuable experience in the area, as well as
across other areas too, which can give you a broad and well-rounded outlook.They also provide a
really effective way in which to study and put your theories into practice, at the same time. The main
downside of apprenticeships is the fact that the statutory payment is comparatively low and you
would need to consider whether or not it is sufficient for you to support yourself for the term of the
apprenticeship.

As with many careers in business, it is often solid and demonstrable experience gained in an
operations management environment which is generally the key to success. You may have a
background in a more specialised role, such as production, engineering, or sales and wish to apply
this to a more general operations job.

The key quality that you will have is a good business sense and an ability to look at all of the parts
and components of a business - to see the bigger picture, if you like, rather than focusing too much
on one specific area or detail.This is why a particularly common and popular route into the
profession is being promoted from one area of the business into an operations management role, enabling you to use your existing knowledge and specific experience related to the business at hand, in a more senior role.

Activity 2

Estimated time: 20 minutes

Imagine that you are being interviewed for the position of Operations Manager for a large
pharmaceuticals company and have been asked to write 200 words on why you feel that you would
be a good candidate for the job, mainly focused on your personal skills and previous experience and
using real life examples, where possible.

Assignment

An Introduction to Successful Operations Management

Time: 30+ minutes

Hopefully, you took in as much of the information in this module as possible.

Module Summary

In this  module, we have aimed to provide you with a solid overview of the management
discipline of operations management, in order to lay the foundations of knowledge that you will need
for the more detailed information ahead in the subsequent nine modules of the course. We defined what operations management is, the purpose of it in an organisational setting and some
of the main principles involved in its implementation in a business.As part of this, we covered a little of the history of the field, including how it made its roots in the
industrial revolution and has continued to evolve ever since. We also looked at some key tips or strategies to help you to be successful in the field. You should
now be familiar with the main accountabilities of an Operations Manager and will also better
understand which skills and personal characteristics are required for those who work in this area, as
well as some of the best routes into a career in operations management. Please refer back to this module as you progress through the course, to check your understanding of
some of the more detailed concepts that will follow.