Operations Management is a pivotal process in manufacturing firms. It refers to the process of planning, directing, implementing and monitoring all the production processes and operations.
In the field of production and manufacturing, these functions of operations management are carried out by an Operations Manager. The processes of operations management are impacted by five variables which are known as 5Ps of management.
These are as follows:
The ultimate link between the production and marketing processes of a company is the product manufactured by it. A customer demands a product but at the same time, the organization must also be capable of producing it effectively.
In accordance with the product policy in an organization, an agreement is formed in accordance with the product’s aspects and different functions. The aspects of products are:
- Quantity and Quality
- Delivery Schedule
- Selling Price
In an organization, there are multitudes of internal and external factors affecting the business environment. These factors affect various aspects related to products such as legal constraints, needs of the market, culture, etc. Hence, they must be given equivalent importance.
There are many occasions when an established method/process may lead to effective production but fail to achieve other objectives. To face such issues effectively, the manager keeps an alternative to every method. He then chooses the best alternative which can accomplish the objectives. While discussing the process, some factors that need to be kept in mind are:
- The capacity that is available
- The production types
- Cost of manufacturing
- Plant Layout
- Labor skills
One of the most important assets of a production firm is a manufacturing plant. An operational plant allows continuous production without bottlenecks. On the other hand, the non-operational plant may hamper the production process.
A plant must be effective so as to achieve the product, market, and organizational needs. Furthermore, financial constraints, building’s design and layout, equipment maintenance, etc are different concerns about establishing a plant.
The plant layout must be effective enough to allow smooth movement of materials and manpower. Its layout must be able to deal with the arrangement of plants and machinery and is dependent upon the demand volume, production type, etc.
Manpower or people are the biggest assets for manufacturing firms. The production is highly affected by people/manpower and their hard work.
Every individual has a different skill set and attitude towards work. Hence, to achieve optimum results, it is mandatory to match an individual with a perfect job he is capable of doing. Furthermore, motivation, decent wages, good working environment, employee training, etc are different factors that need to be handled by a manager to ensure that people are working at their optimum productivity level.
In a manufacturing unit, there should be a proper time schedule for the implementation and completion of various progammes. To accomplish different situations, different programmes are organized. These are related to:
So these were 5Ps of Operations Management that are crucial for every Operations Manager. If you aspire to become an Operations Manager and earn big, then you can join post graduate diploma in management course offered by MIT School of Distance Education (MIT-SDE). Our courses will provide in-depth knowledge of the sphere to prepare the students to immediately get absorbed in the industry. So, get admissions at MIT-SDE and fast-track your career prospects.