Operations Management: What Is It and Why Does It Matter?

Operations management executes backend business functions. It is an exciting career field that oversees manufacturing, inventory, and quality control to prepare products for the market. Efficient operations enable businesses to thrive and succeed.

Learn about operations management, its importance, and how to enter this career field.

Start learning operations management today

Check out the Supply Chain Operations course, which is part of the Supply Chain Management Specialization offered by Rutgers University. It's a quick yet comprehensive introduction to key concepts in operations management.

What is operations management?

Operations management is the administration of business structure, practices, and processes to enhance efficiency and maximize profit. It refers to the management of functions that a business needs to run effectively day-to-day, including:

• Overseeing multiple departments and providing goals

• Overseeing and streamlining processes

• Balancing revenue and costs

• Developing strategic plans

• Managing production, logistics, and supply chain

Read more: Digital Supply Chains: Definition, Benefits, and Careers

Why is operations management important?

Operations are the foundation of a business, including how it deals with supply chain and logistics. Profits rely on lean, efficient operations. Poor business operations can threaten a business’s survival, so processes require optimization and proper staffing, and physical locations must be strategic, ethical, and safe.

Responsibilities of operations managers

Duties vary according to the nature of the company and the specific role, but in general, someone working in business operations is responsible for:

• Evaluating, designing, and implementing business processes

• Managing logistical processes and supply chain

• Overseeing production, distribution, and quality assurance

• Managing and analyzing financial budgets

• Making strategic decisions and engaging with other senior staff members on business strategy 

• Supervising employees

• Supporting HR with recruitment initiatives

• Building relationships with stakeholders and suppliers

Skills needed

Working in operations management requires a variety of skills, including:

• Leadership

• Organizational skills 

• Interpersonal skills

• Problem-solving ability

• Process improvement

• Project management

• Financial analysis

• Business acumen

• Detail-oriented approach

• Communication skills

• Decision-making ability

• Excellent time management 

Read more: What Are Interpersonal Skills? And How to Strengthen Them

Career paths in operations management

A career in operations management can come in many forms, from general business operations roles to more niche, specialized options. Here, you can familiarize yourself with just a few operations management roles:

1. Operations research analyst

Average salary (CAD): $68,784 [1]

Job description: Operations research analysts help companies make important decisions about cost-effectiveness, staff resources, supply chain, and product placement through high-level statistical analysis and mathematical modeling, data mining, and optimization techniques. 

Education: This position usually requires a secondary school diploma and a bachelor’s degree in analytics math, data science, or a similar field. A master’s in data analysis is beneficial when looking to grow further in your career.

Operations research analysts require skills and knowledge to perform are in demand. Start learning the basic skills needed for this career:

2. Business operations manager

Average salary (CAD): $76,313 [2]

Job description: A business operations manager makes data-informed strategic plans to improve operations. 

Education: Business operations managers typically have a bachelor’s degree in business administration, finance, or management. A master's or doctoral degree in a business-related subject or one specific to the industry you work in is typical for more senior positions. 

3. Purchasing manager

Average salary (CAD): $74,373 [3]

Job description: A purchasing manager buys products, goods, and services for resale by their company. In this role, your job is to secure the best and highest quality products at the lowest price to sell and make a profit. A purchasing manager will likely have buyers or purchasing agents they manage or oversee. 

Education: Typically a bachelor’s degree or college diploma. 

4. Materials manager

Average salary (CAD): $87,082 [4]

Job description: A materials manager is responsible for procuring, storing, and distributing a company's inventory and stock. In this role, you research prices, monitor stock levels, and negotiate prices and contracts. 

Education: Materials managers typically have a bachelor's degree in a relevant subject, such as logistics or business administration, and work experience in the field. 

How to become an operations manager

The guide below offers steps to follow as a start to your career in operations management, including on-the-job experience, education, and professional certifications to consider that can help you stand out.

1. Consider a bachelor’s degree.

Jobs in operations management typically require a bachelor's degree in a business-related subject such as business management or business administration. These programs focus on relevant subjects like finance, business management, economics, business communications, and logistics. Another option is a bachelor's degree in an industry, such as economics, finance, or the law. 

2. Gain relevant professional experience.

Working as an operations manager typically requires relevant work experience. Get your start in an entry-level position (such as an operations assistant) or gain work experience as a buyer. Later, you can take on more senior responsibilities to build your management skills.

3. Consider pursuing a graduate degree.

In high-level roles, operations management professionals often have master's degrees or, more specifically, a Master of Business Administration (MBA) degree. MBAs focus on leadership, finance, management, and marketing, and you can opt to drill into operations with elective classes in logistics and operations. 

4. Advance with certifications.

Certifications in operations management indicate that you have a deeper knowledge of your subject area and a higher level of proficiency, which can increase your job prospects. A few certifications to consider include:

• PMI Project Management Professional (PMP)

• CBP Certified Business Professional (CBP)

• ASCM Certified in Planning and Inventory Management (CPIM)

• PMI Risk Management Professional (PMI-RMP)

• ABPMP Certified Business Process Associate (CBPA)

• ASCM Certified in Logistics, Transportation and Distribution (CLTD)

Next steps to become an operations analyst

Operations analysts are in demand, and the path to becoming one starts with learning the key concepts. Enroll in the Supply Chain Operations course, part of the Supply Chain Management specialization offered by Rutgers University on Coursera. You'll have the opportunity to learn essential process improvement tools, like the Six Sigma methodology and Lean supply chains.