One way to manage business production activities is through operational management. This involves planning that focuses on the daily production activities of a business, helping to ensure that processes are carried out accurately and smoothly. Additionally, operational management must ensure that the production process runs according to the initial plan and meets the established targets.
For a more detailed explanation of operational management related to strategic planning and business activities—especially daily production—take a look at the full discussion in this article. The ultimate goal of operational management is to increase business revenue and achieve maximum profitability.
The role of operational management is to design, supervise, and control production activities. Not only that, it also involves overseeing the entire business strategy related to the production of goods and services. Therefore, operational management activities encompass various aspects, including raw material input, consumer demand information, finance, and more. The person responsible for carrying out all these operational management tasks is called an operations manager.
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As mentioned earlier, operational management encompasses the planning, supervision, and control of all production processes, including the management of resources. These resources include workers, equipment, tools, and raw materials. Operational management helps ensure that all these elements function effectively and efficiently. According to Gramedia website, here are some of its key objectives:
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According to Telkomsel, examples of operational management activities include:
After understanding the definition, objectives, and some examples above, it’s time to explore the characteristics of operational management:
The first characteristic of operational management is having a clear goal to manage all activities involved in the production of goods and services in order to generate revenue. Simply put, operational management is responsible for controlling production processes and ensuring the business earns maximum profit.
The second characteristic is the presence of activities that involve transformation. This means that either all or part of the inputs are transformed to add value and make them consumable by customers.
Examples include transforming thread into fabric or flour into cookies. In other cases, the input may be people or specific information, which is often considered more complex.
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The third characteristic is having mechanisms to control the business. These mechanisms are generally applied to business activities such as improving sales performance and product quality.
From the explanation above, it's clear that operational management is a vital system in ensuring smooth business operations. This system plays a key role in helping the business run effectively and efficiently. Its main function is to produce products according to set standards and to meet customer needs.
However, for operational management to run smoothly, another critical aspect to consider is proper financial recordkeeping. Good and organized financial records will help ensure smooth business planning and execution.
To support this, you can use a digital point-of-sale (POS) system like Youtap POS. Youtap POS offers a variety of advanced features that make managing your business easier, one of which is helping you record all transactions and generate financial reports. This will greatly simplify your operational management process and ultimately contribute to your business growth.
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