Businesses are always looking for ways to manage every aspect of their operations. As a result, companies go through countless hours of research, development, and innovation to find a way to cut down the time it takes to complete tasks. This is where an operations management system (OMS) comes in. With an operations management system, organizations can create a business framework that details the method of increased productivity and better quality control—all at a reduced cost. But what exactly is OMS, and how can you establish one for your business? This comprehensive guide to the operations management system will explore the importance of what OMS is all about, how important it is, and how you can implement it into your own business for maximum results.
What is an Operations Management System?
Operations Management System (OMS) is a management system that enables organizations to design, direct, and control an organization’s operations to create products or services that meet customers’ expectations and achieve organizational goals. It is a vital component in an organization’s ability to be productive and efficient in delivering outputs for greater profitability.
While operations management (OM) focuses on transforming organization inputs and resources into outputs (e.g., goods, services, products), the role of OMS focuses more on maximizing the organization’s performance in managing business operations to reach the highest possible efficiency level.
With OMS, operations managers can streamline operations, make real-time decisions, and optimize resources while reducing costs. OMS is not just a software application—it is a comprehensive management system that helps operations managers to be proactive and prevent problems before they happen.
5 Key Business Performance Objectives
OMS is all about improving the overall performance of a business. To do this, the five key business performance objectives need to be understood. These business objectives will help the organization stay focused and on track while implementing OMS into its operations.
In addition, these objectives provide a competitive advantage for any organization. These objectives are as follows:
Quality is the indicator of an organization’s ability to meet customer expectations. OMS can help operations managers reduce or eliminate product or service errors and defects.
Speed measures an organization’s ability to respond quickly to customer demands. OMS helps operations managers to identify areas where processes can be streamlined and accelerated.
Dependability is the degree to which an organization can be relied upon to meet customer expectations. OMS allows operations managers to track and monitor performance in real-time, identify issues quickly, and take corrective action to prevent or resolve problems.
Flexibility measures an organization’s ability to adapt to changes in customer demand. OMS allows operations managers to quickly make changes to processes and operations to meet changing customer needs.
Cost is the measure of an organization’s expenditures relative to its revenues. OMS helps operations managers to reduce or eliminate waste and inefficiencies in operations, which can lead to significant cost savings.
Main Components of an Operations Management System
An OMS has 12 major components that must be in place to maximize the organization’s performance. Each of these components contributes to the achievement objectives and goals.
For an overall effective operations management, it’s important to familiarize and understand the components that make up the entire operations and how they work together. These components are:
- Location Strategies
- Total Quality Management (TQM)
- Materials Requirements Planning (MRP)
- Just-In-Time (JIT)
- Process and System Performance
- Layout of Facilities
- Inventory Management
Forecasting relates to the organization’s use of past data, statistics, figures, and other past details to determine the next steps or decisions for production. This component is important in calculating how much a particular product should be produced.
This component relates to the organization’s selecting a location to grow its business. The factors in selecting a location are as follows:
- The location should be in close proximity to raw materials or human resources.
- The location should provide adequate space for manufacturing or inventory.
- The location should aid in reducing costs, such as transport costs and other possible risks.
Maintenance helps keep operations running smoothly by repairing or replacing damaged parts, keeping up with safety and health standards, and other general upkeep. This can help improve the quality of products or services, extend equipment life, and minimize downtime.
This function is related to obtaining the raw materials or parts needed for operations. This can be done through negotiations with suppliers to get the best price, quality, and delivery time possible.
This component helps to plan and coordinate the sequence of steps or operations needed to create a product or service. This can help optimize resource use, reduce downtime, and improve quality.
Total Quality Management (TQM)
TQM relates to the organization’s effort to create a customer-centric and process-focused workflow. This component involves improving the productivity of all employees and activities of the organization to ensure customer satisfaction and expectations.
Materials Requirements Planning (MRP)
MRP is a planning and control system that helps operations managers to ensure that the correct materials are available when needed. This process takes inventory of the stocks you currently have, identifies which extra materials are needed, and schedules either the acquisition or production of these materials.
Quality relates to the degree to which a product or service meets the customer’s expectations. In addition, it also relates to the organization’s consistency in providing high-quality goods and services every time.
JIT is a management approach that seeks to minimize waste and improve operations by ensuring that the correct materials are available when needed. It relates to the organization’s strategy of manufacturing goods on time or whenever they are purchased or ordered.
Process and System Performance
Process and system performance refer to the efficiency with which an organization’s operations can meet the customer’s expectations. It relates to the organization’s performance measurement via a thorough analysis of goods in their expected production time to determine which part of their processes is falling short.
Layout of Facilities
The layout of facilities refers to the organization’s use of its workflow to minimize waste in moving items to facilities that can be taken out of the workflow. It can impact operations by affecting the flow of materials, operations efficiency, and employees’ safety.
Finally, operations managers must also be concerned with inventory management. This component relates to the organization’s ability to keep track of its stocked items and ensure that they have the resources needed at the right time. Inventory can be managed through software systems, which can help optimize stock levels and minimize waste.
Create an OMS Workflow with the DataMyte Digital Clipboard
Implementing an operations management system in your business is a smart way to increase productivity and efficiency. One way you can do this is by using the DataMyte Digital Clipboard. In addition, DATAMYTE’s workflow automation software is the perfect solution to create operations management system workflows easily so that you can focus on other aspects of your business.
With the DataMyte Digital Clipboard, you’ll be able to:
- Eliminate paper operations management system forms and switch to digital operations management system workflows
- Access operations management software from any computer or mobile device
- Create custom operations management software fields and workflow processes
- Integrate with your existing business software applications
- Track operations management system data in real-time
- Generate operations management system reports for analysis
If you’re looking for a way to implement, monitor, and improve your operations management system, DATAMYTE is the perfect all-in-one solution. Request a demo today to see how our software can help your business run more smoothly.
By incorporating an operations management system into your business operations, you can improve productivity, efficiency, and quality while reducing waste and increasing profits. Use this article as a reference when creating your OMS, so you’re guaranteed not to miss any key steps in the process.