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32 Examples of Operations Management

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Operations management is the direction and control of the processes that produce a firm's products and deliver its services to customers. These are typically viewed as the core processes of an organization that are carefully measured, optimized and improved. The nature of operations differs greatly from one industry to the next. The following are illustrative examples of operations management.
Sales & operations planning
Operations strategy
Operations planning
Demand forecasting
Capacity planning
Resource management
Inventory management
Facility management
Risk management
Quality assurance
Quality control
Continuous improvement
Maintenance planning
Supply chain
Supplier performance management
Operations technology
Process automation
Workflow automation
Operations metrics & reporting
Benchmarking
Cost reduction
Workforce management
Production planning
Production scheduling
Procurement
Logistics
Manufacturing
Production
Distribution
Workplace safety
Compliance
Environmental sustainability

Core Processes

Operations management is concerned with the core value generating processes of an organization. These differ greatly by industry. The following are a few examples of core processes:

Procurement

Procurement is the process of developing requirements for inputs and selecting and managing suppliers. This is carefully controlled to prevent fraud and ensure that suppliers are able to meet a firm's requirements in areas such as quality, sustainability and reliability. For example, a fashion company that sources organic cotton from diverse suppliers in multiple countries that monitors each firm to ensure they run their business in a sustainable and ethical way.

Supply Chain

Supply chain is the end-to-end process of transporting and storing supplies, goods-in-process and finished goods. For example, a train manufacturer that manages the flow of materials and parts to its factories and the delivery of finished trains to customers.

Manufacturing

Manufacturing is the process of producing a physical product. In a manufacturing firm, operations management is primarily concerned with managing supply chain, factories and production lines. Management carefully measures these processes with management accounting techniques to optimize for efficiency, productivity, quality, throughput, turnaround time and other key operating metrics.

Production

Managing other types of production besides manufacturing. For example, managing the kitchen of a restaurant as part of hotel operations management.

Service Delivery

Service delivery is the delivery of services to customers. For example, a theme park that delivers services such as attractions, food services, performances and guest services. Service delivery can also include the process of operating an information technology service such as a software platform.

Customer Service

Customer service is a type of service delivery that involves direct interactions with the customer. For example, the process of managing a call center for an ecommerce company that accepts feedback, answers questions and offers services such as orders, returns and cancellations.

Information Technology

Management of information technology may fall under operations. This is common in the IT industry where information technology is produced primarily for customers. It is also common in industries where information technology is focused on automating operations. For example, a bank that views information technology as an operations function that automates, controls, monitors and reports financial transactions.

Quality Assurance

Quality assurance is the practice of measuring and controlling quality. This includes the process of addressing the root cause of quality problems. For example, a food manufacturer that tests the quality of products and investigates and addresses the root cause of quality variances.

Distribution

Distribution is the process of reaching the customer with your products and services. This includes supply chain and can extend to touchpoints with the customer. For example, retail management may be considered a type of operations management.

Overview

Operations management is the direction and control of the processes that create an organization's products, services and customer outcomes. These are often the most automated, systematized and optimized processes in an organization that are continually improved in areas such as cost, quality and speed.

Summary

The following are common examples of operations management functions.
Definition: Operations Management Examples
Type
Definition
The direction and control of the processes that produce a firm's products and deliver its services to customers.
Related Concepts
Next read: Operations

Operations Management

This is the complete list of articles we have written about operations management.
Asset Management
Automation
Budget Planning
Business Objectives
Business Processes
Capacity Management
Conformance Quality
Continuous Improvement
Devops
Estimates
Fit For Purpose
Goal Setting
IT Services
Kaizen
Operational Analysis
Operational Performance
Operations Examples
Operations Plan
Operations Planning
Performance Improvement
Performance Management
Performance Metrics
Process Metrics
Quality
Quality Assurance
Quality Control
Quality Management
Quality Metrics
Quality Objectives
Risk Management
Service Management
Strategic Drivers
Strategic Planning
Vendor Management
Workflow
More ...
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