What are the challenges facing operations management? Essay
What are the challenges facing operations management?
2) Sustainability is coming, and operations leaders need to understand how to implement it within their organization in a manner that pays for itself. Good corporate citizenship is nice, but you’ve got to be able to sharpen your operation with your sustainability efforts as well. Turning it into a business model improvement rather than a cost item can be a challenge. 3) Learning the Genius of AND (borrowed from Jim Collins, “Built to Last”) – having operational excellence AND innovation, sustainability AND profitability, faster deliveries AND lower inventories, less people AND more productivity – it’s easy to view these as choices between one or the other. Finding solutions where both can be true can be hard, and requires new ways of thinking.
Financial Management Controls
Operational managers must ensure that financial accounting and reporting mechanisms are adequate and functional. Dysfunctional mechanisms typically cause a company to report inaccurate financial statements, including balance sheets, statements of profit and loss, cash flow statements and statements of retained earnings.
A sound operational management policy helps manufacturing department heads and segment chiefs ensure that a company possesses adequate computer software and hardware to meet business requirements. Absent this policy, a firm may be unable to effectively operate and meet profitability goals.
Operational managers generally must ensure that corporate policies and operating guidelines adhere to top leadership’s stipulations, human resources procedures and professional standards. These policies also must conform to industry practices and government regulations.
Safety management is a key challenge that operational managers must confront when performing duties. Managers typically implement safety guidelines to prevent occupational accidents and operating losses resulting from litigation and regulatory fines.
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