The term ‘operational management’ is practically equivalent to the terms ‘operations research’, ‘system engineering’, ‘industrial engineering’, ‘management engineering’, or ‘management science’. All these terms have a similar meaning.
As an example, see the book "Healthcare Management engineering. The use of operations management methodology for quantitative decision-making in Healthcare settings", 2012, Springer Briefs in Healthcare Management and Economics, Springer, NY.
Operational management is the utilization of resources from staff, materials, equipment and technology to produce goods and services while managing the supply chain and infrastructure.
Operational management in the 21st century has been significantly influenced by advancements in technology.
Businesses and organizations across various industries have leveraged technology resources to improve efficiency, productivity, and decision-making.
Here are some key aspects of operational management and technology resources in the 21st-century approach:
Data Analytics and Business Intelligence: Big Data Analysis: The 21st-century approach to operational management relies heavily on collecting, analyzing, and interpreting large volumes of data. Big data analytics helps organizations make data-driven decisions, optimize processes, and gain valuable insights into their operations. Business Intelligence Tools: Business intelligence (BI) tools and platforms enable organizations to visualize data, create dashboards, and generate reports that provide real-time insights into various aspects of their operations, such as sales, supply chain, and customer behaviour.
Automation and Robotics: Process Automation: Automation technologies, including robotic process automation (RPA), have streamlined repetitive and rule-based tasks in operational processes. This not only reduces errors but also frees up human resources for more strategic tasks. Industrial Robots: In manufacturing and logistics, the use of industrial robots has become increasingly common. These robots can perform tasks like assembly, packaging, and material handling, improving efficiency and accuracy.
Supply Chain Management: Supply Chain Visibility: Technology resources such as IoT (Internet of Things) sensors and RFID (Radio-Frequency Identification) tags provide real-time visibility into the supply chain. This helps in tracking the movement of goods, monitoring inventory levels, and predicting demand more accurately. Blockchain: Blockchain technology has been explored for enhancing transparency and traceability in the supply chain. It can help reduce fraud, errors, and delays in the movement of goods.
Inventory Management: Inventory Optimization Software: Advanced software solutions help organizations optimize their inventory levels by forecasting demand, managing reorder points, and reducing carrying costs. Barcode and RFID Systems: Barcode and RFID systems are used to track and manage inventory more efficiently. They enable quick and accurate inventory counts and reduce the likelihood of stockouts or overstocking.
Customer Relationship Management (CRM): CRM Software: CRM software and platforms enable businesses to manage customer interactions, track sales leads, and provide personalized customer service. This technology helps in building and maintaining strong customer relationships.
Cloud Computing:Cloud-Based Systems: Many operational management systems, including Enterprise Resource Planning (ERP) and collaboration tools, are moving to the cloud. Cloud computing offers scalability, flexibility, and accessibility from anywhere, improving collaboration and data sharing.
Artificial Intelligence (AI) and Machine Learning (ML): Predictive Maintenance: AI and ML algorithms can predict equipment failures in advance, allowing for proactive maintenance and reducing downtime. Chatbots and Virtual Assistants: AI-powered chatbots and virtual assistants are increasingly used in customer support and internal operations to automate responses to common queries and tasks.
Cybersecurity: Security Measures: As organizations rely more on technology, cybersecurity becomes a critical aspect of operational management. Implementing robust cybersecurity measures is essential to protect sensitive data and maintain operational continuity.
The 21st-century approach to operational management is characterized by a heavy reliance on technology resources to enhance productivity, optimize processes, and adapt to changing market conditions.
Embracing these technological advancements is crucial for organizations looking to stay competitive and efficient in today's fast-paced business environment.