Operational management (or operations management) is engaged in solving current problems, but this does not mean that the decisions made within it are not important. On the contrary, without solving everyday tasks, the company’s activities are impossible.
Operational management is actually the development of solutions related to reducing the costs of the company without losing the quality of the results of these activities. Thus, operational management in solving everyday tasks is engaged in the overall optimization of the company.
Successful operating solutions are often copied by competitors, so they are rarely an advantage, at least for a long time. But this does not mean that you do not need to look for non-standard solutions that allow you to optimize the company's activities: pioneers, as a rule, still skim some cream.
The operational management function is often one way or another dispersed throughout the various services of a company. This allows the heads of these services to optimize production processes within their segments, which ultimately will positively affect the activities of the entire company.
Undoubtedly, operational management should be based on strategic. For example, the management of an airline that is positioned on the market in the low-cost segment is unlikely to decide to serve on board a three-course lunch, the cost of which will be included in the ticket. Such a decision would be irrational. Or the manufacturer of luxury goods cannot reduce the cost of production by using cheaper raw materials: this may affect
quality of the final product.
A study of operational management at a university or advanced training course will undoubtedly be useful to middle and senior managers, since in organizing and managing a company, in addition to experience, theoretical and practical knowledge is needed.
In addition, knowledge of the basic principles of operational management will be useful in assessing the overall performance of a company. The study of this discipline is useful not only for managers, but also for accountants, financiers, marketers, and even programmers.
Operational analysis in financial management, as part of short-term planning, helps to track the dependence of the company's performance in cash terms, that is, profit from production costs and its volumes.
This analysis is often called the breakeven analysis, because it can calculate, inter alia, the volume and nature of production at which the financial results of the company will be zero. It also helps determine the threshold for profitability of the company and allows you to predict the financial consequences of making some decisions.
Thus, operational analysis and operational management are closely interconnected, so that entrepreneurs and managers must be familiar with these disciplines so that the company not only continues its activities, but also develops as efficiently as possible.