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Operations Management: Factors and Approaches

Importance of Operations Management

Operations management is critical for any business because it can be used for effective and efficient work that ensures the possibility to meet the overall business objectives and reach successful performance. To prove this fact, it may be advantageous to consider the ways the most typical goals can be achieved:

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Control costs so that they are not ahead of the revenue. Operations management controls quality, production, inventory, and logistics. In this way, it ensures that the number of clients who are willing to buy offered products increases and their loyalty improves, which affects profit. Production is efficient and associated costs are adequate. Inventory is managed so that raw materials are appropriate for finished goods. Finally, transportation is not too expensive and does not hurt products (Merritt 2017).

Customer service

Maintain customer satisfaction that is critical for revenue. Operations management makes certain that contact with clients is maintained so that the company obtains their feedback and becomes able to alter its products or services so that they meet changing needs and demands.

Employee retention

Create a productive working environment that affects retention positively. Operations management ensures that the company’s values are shared among the personnel and opportunities for further education, performance improvement, and career development are available.

Change management

Make certain that the company is dynamic and able to deal with challenges (Root 2018). Operations management presupposes that critical changes and their necessity are identified. Employee perceptions of alterations are considered, and the personnel is encouraged to implement them in practice.

Such approaches in operations management as TQM and Six Sigma make it possible to provide products of consistent quality. Thus, they ensure successful operations and customer loyalty. Without them, companies can face financial problems and fall behind their competitors because of clients’ dissatisfaction with products. Thus, operations management is critical for organizational performance and the ability to reach its goals.

External Environmental Factors

External environmental factors of a fast-fashion industry affect operational management and associated decision-making. For instance:

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  • Competition influences the ability to reach clients. It makes leaders develop unique offerings and increase brand awareness.
  • Government policies may restrict the sales of some products, so managers need to look for foreign markets or limit their product range (Professional Academy n.d.).
  • Natural forces may limit natural resources and make leaders alter their spending objectives.
  • Social and cultural forces can determine the color and type of clothes used by clients, so managers need to gather information about them beforehand to ensure that products meet customer needs.
  • Demographic factors, such as age and sex, affect the identification of the target market and define what products are likely to be bought.
  • Technological changes require leaders use new tools for product creation. Moreover, they presuppose the necessity of employee training.

Approaches to Operations Management

Operations management can be practiced using the following approaches:

Six Sigma

It is a technique for process improvement focused on quality. It requires the identification and overcoming of issues in manufacturing and other business processes. Leaders deal with the selection of projects, development of charters, allocation of resources, change implementation, and evaluation (Role of leadership in Six Sigma 2018).

Lean production management

It is a set of principles needed for the transformation of organizational operations and used on a long-term approach. The focus is on customer value, continuous improvement, and people. Leaders operate as coaches who control teams and provide guidance to achieve goals (Lean management n.d.).


It is a process that affects end-user waiting time. Leaders ensure team productivity, which streamlines operations. As a result, clients do not need to wait for the products they need because everything is managed timely (Queue management 2018).

Reference List

Lean management: the role of lean leaders n.d. Web.

Merritt, C 2017, How operations management enhances corporate profitability. Web.

Professional Academy n.d., Marketing theories – PESTEL analysis, weblog. Web.

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Queue management 2018. Web.

Role of leadership in Six Sigma 2018. Web.

Root, G 2018, 10 most important business objectives. Web.

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