What are the Key Operations Management Strategies?

Operations Management Strategies

The key elements that go into a company’s operations strategy are as follows −

Production system

An organizing production system controls the short-term and long-term planning for how funds are turned into sellable products and services. A general production system includes clear enterprises, quality control specifications, and supply chain management strategies.


A company operational capacity is affected by the size and production quantity facilities. To function properly, certain facilities need attainable production goals, clear safety procedures, and inventory management systems.

Product or Service

One of the most important elements of any operations strategy is the quality management of a product or service. Businesses examine the life process of their products and services beneficial to see market trends, adapt their product or service, and assign resources to new service development and product development.


Operations strategy more and more depends on new professional developments like expert system, production line automation, real-time pattern, and market forecasting tools.


An overall strategy for operations allows the total operations resources accessible to an organization, including positions, mechanical, and human resources.

Common Issues in Operations Management

In any kind of business, operational issues are any kind of problem that arises which can render a business less profitable.

Here are some of the most frequent issues of operations management as stated below −

  • Managing Overheads

Overhead can easily require, even if they are coming in the shape of administrative cost insurance, rent or depreciation. Excessive costs can be very harmful if they aren’t managed in reasonable time, hence a fairly big problem for small businesses to manage with.

For example, in case it's falling behind on rent, failing to take utility payments, office supplies or business consumption, twist costs can be numerous.

  • Monitoring Performance

How do you measure achievement? And, how do eventually indicators illustrate that your team is performing to its fullest? If some of the members of our team are not working as well as they should then our business would suffer a lot as a result.

For example, one of the members of our team is not working properly which will affect the rest of the team morale, which impact entire productivity as well.

  • Listening to Feedback

In the modern business world, the image or fame can easily be affected if anyone makes negative comments online.

Similarly, customers expect fast, effective customer service. It is up to businesses to listen to the feedback they receive, so they can put oneself in a position to deliver adequate service to their basic audience.

For example, there’s been a complaint about the convenience of your website, which has caused a drop in the traffic and business it has received in the past few days.

  • Responding to Competition

Today, starting a business is more practical and attainable than ever. But with so much easily available information and direction out there, it does mean that there can apparently be more competition in the same market. And even if your competition focuses on a single service or a large market, how do you stand out from the rest?

For example, a candidate provides the same product/service at a lower price than you, taking a considerable chunk of your customers with them.

  • Regulation and Compliance

Regulation and compliance can be a vital issue if not distributed properly. As markets and technologies develop, they bring with them a new set of rules and regulations. Unluckily, businesses are often unaware of, or don’t conclude, what’s being asked of them. Immediately, fines and penalties come into play, and something that could easily have been resolved becomes a problem.

For example, the recent adoption of GDPR, which was implemented in May 2018.

  • Uncertainty

We never know exactly what is going to happen in the future, but we can get ready for customer and market trends with some sharp forward planning. Most businesses will have some goal for the future to arrange, but it’s surprising how many fail to plan for periods of uncertainty.

For example, the variation of market trends in a changing economic environment can cause businesses to hold back themselves, creating decomposition among their employees.

  • Cyber Risks

As a substitute merely for an IT issue, cyber security is more and more a risk for all businesses. If cyber security isn’t properly controlled, businesses leave themselves exposed to an increasing number of warnings which can lead to violation, hacks and other attacks.

For example, violation leads to important customer information being revealed, creating distrust surrounded by your customer base.

  • Finding the Right Staff

As the company becomes profitable and you see successes increase, you will confidently get more of an idea of the kind of person who is the right fit for your business. In a small business, expertise and character tend to be cherished over other qualities, but not everyone is going to be the right person for a given company.

For example, you’ve obligated to a long hiring process, only to find you’ve hired someone who isn’t the right fit for the business.

  • Retaining Customers

At this stage, you have recognized an end user that cares towards your service or product, but how do you make sure they stay with you and keep coming back?

For example, business has jinxed with customers not returning as frequently as you’d hoped for, and things are starting to dry up further. So now you need to find ways to retain your old or loyal customers somehow.

  • Cash Flow

If it is outstanding debt, unexpected expenses, or uncertain payments, money problems can be a major issue. With so much to balance, sustaining a healthy cash flow is key to surviving as a business.


In this tutorial, we have seen about operations management. Employees have to manage the system regularly. They have to require different technologies to upgrade in the business. They have to use all the resources.

Also, it has to maintain the debts and the expenses or whatever uncertain payment is due. At last, Operation management can cover all the business activities if the team work is efficient.

Updated on: 24-Jun-2022


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