Understanding Operations Management System (OMS) and its importance in an organization's productivity and efficiency in delivering outputs for greater profitability.
Published 19 May 2023
Operations Management System (OMS) is a collection of processes and strategies for making the operations of organizations more efficient.
While Operations Management (OM) focuses on how the organization will transform inputs or resources into outputs (which are products, goods, or services), the role of OMS is geared towards maximizing the organization’s performance in managing the business operations to reach the highest level of efficiency possible.
Yokogawa defines OMS as a system that, “helps to ensure safe, reliable and efficient [plant] operations and regulatory compliance by digitization of information related to key operations management practices. [This] It results in improved productivity through standardized work practices, streamlined processes, plus improved communications and coordination across departments.” Additionally, OptimoRoute explained OMS as a “business framework that charts the path to increased productivity and better quality control at a reduced cost.”
When discussing the organization’s performance, the 5 key business performance objectives should be understood. Business performance objectives help the organization to stay focused. To successfully achieve increased productivity and efficiency in an organization, it should have an indicator of the quality of its products or services. These objectives provide competitive advantages for any organization. They are:
Five Business Performance Objectives for Operations Management System
There are 12 major components of operations management that must be in place in order for the organization’s performance to be maximized and its efficiency to be at its highest. Each of these components contributes to the achievement of the organization’s objectives. For effective operations management, it is important to understand the different components that make up the entire operations and how they work together. They are:
Main Components of Operations Management
Maintenance—this relates to the organization’s scheduling of regular maintenance checks, inspections, auditing, and adjustments for the machines and equipment; this creates a safe environment or workplace for employees and minimizes the risk of equipment failures or breakdown.
Purchasing—this relates to the organization’s capacity to meet future market demand by ensuring that the organization has a sufficient supply of raw materials for manufacturing purposes.
Scheduling—this relates to the organization’s proper delegation of assignments or job orders to appropriate employees or machinery; the right assignment of tasks to the right labor resources will reduce the cost of overall production.
Total Quality Management (TQM)—this relates to the organization’s strategy for creating a customer-focused and process-focused organization; this involves improving the productivity of all employees and activities of the organization in order to fulfill customer expectations.
Materials Requirements Planning (MRP)—this relates to the organization’s seamless production process of ensuring that the right amount of materials are supplied at the right time. MRP is the process of taking inventory of the stocks you presently have, identifying which extra materials are needed, and scheduling either production or the acquisition of those materials.
Quality—this relates to the organization’s consistency in providing high-quality goods and services that meet the customer’s expectations.
Just-In-Time (JIT)—this relates to the organization’s strategy of manufacturing goods “just in time” or only whenever they are ordered or purchased.
Process and System Performance—this relates to the organization’s measurement of their performance through analysis of goods produced in their expected time of production to determine where their processes are falling short.
Layout of Facilities—this relates to the organization’s use of its workflow to minimize waste in movements of items to facilities that can be taken out of the flow.
Inventory Management—this relates to the organization’s ability to keep track of its stocked items and ensure that they have the resources they need at the right time.
As it grows in size and complexity, every organization starts to become more challenging to manage. The complexity of managing an organization increases when the number of things that need to be managed increases, such as the number of employees, services, programs, or business processes. The ability of a business to turn assets into profits, inventories into goods, and supply chains into cash flow is enhanced by the use of an OMS.
Below are the benefits of establishing OMS in the organization:
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According to Chris Seifert, Partner of Operational Excellence Practice at Wilson Perumal & Company, there are three fundamental types of review for OMS—self-assessing, internal auditing, and third-party auditing.
Establishing an OMS in your organization may require you to automate and digitize your processes to achieve increased operational efficiency in all operations. Reach the highest level of efficiency by integrating SafetyCulture, the best operations management app for conducting paperless assessments, inspections, and audits for your business.
With SafetyCulture, project managers, supervisors, supply chain managers, audit teams, and operations professionals can:
Increase the potential for collaboration with Heads Up, the newest feature from SafetyCulture. Send engaging communications at scale and enable comments and questions from all employees or a select group such as a team or department. Start actively building relationships based on trust and confidence between workers and executives to close the communication gap and get jobs done without any unnecessary obstacles.
Check out these helpful checklists that you can use for OMS:
Loida Bauto is a content contributor for SafetyCulture. An Interior Designer by training, she began to pursue her passion for writing in 2017. Her interests involve a diverse range of topics such as Disability, Universal Design, and Sustainability, among other matters that aim to improve the world we live in. She is a self-published book author in 2018 and 2021.
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