What is Operations Research and Operations Management?

Steps in Operations Management

The key steps to be followed in operations management are as follows - 

1. Establishment of the organisation structure.
2. Recruit the right staff for the right job.
3. Develop strategies towards all operation processes.

Why is Operations Management Important?

Operations Management is the nucleus of any company, big or small. The following points explain the importance of operations management and the role of Operations Managers -  

1. Operation management handles a company’s daily macro and micro activities seamlessly.
2. It monitors the operating system of a company and enables it to make correct decisions.
3. Operation management oversees timely production, design, maintenance, warehousing, logistics, distribution network, etc. and even takes charge in case of sudden abnormalities in the execution process.
4. Operations management ensures brand promotion and customer satisfaction by improving the quality of products.
5. Customer feedback management is also another important function.
6. Operation management looks after the revenue health of an organisation and constantly strives to promote cost-effective production methods to improve bottom lines.
7. Operations Managers are responsible for analysing and fixing up financial budgets. 
8. It is also employee-centric and motivates them to be better performers.
9. Operations management helps to build relationships with stakeholders and suppliers. 

Elements of Operations Research

The essence of Operations Research is providing solutions to operational problems through numerical and statistical analysis. The different processes or tools taken up are the followings –

1. Discrete event simulation
2. Constraint programming
3. Mathematical programming
4. Optimal theory control
5. Combinatorial optimization
6. Dynamic programming
7. Game theory and differential games
8. Risk analysis
9. Optimization and linear programming
10. Stochastic modelling
11. Artificial Intelligence and network analysis

Three common features in all operations research endeavours are as follows –

Optimization

The purpose is to reach the best performance option with the given parameters. The process involves weighing in all probable solutions and then filtering them to find the optimum one.

Simulation

This is the process of building models around the given problems. Here, solutions can be generated by applying numerical analysis. Each probable solution is tested thoroughly before applying the same in real situations.   

Probability and statistics 

The model is fortified by mathematical algorithms and history data which support finding out operations insights. Risk analysis is also a major activity of this tool. This offers not only reliable solutions but also meaningful predictions for the future. 

Steps in Operations Research

Operations research is a mathematical analysis of operational problems by breaking down large issues into elemental components and helping the management of an organisation in decision-making. The sequence followed may be broadly stated as follows –

1. Identification of a problem that merits a solution.
2. Construction of a model that mimics the problem in a real situation.
3. Using the model to reach a solution.
4. Testing individual solutions on the model and determining their success and limitations. Finally, the best-suited solution is chosen. 

Why is Operations Research Important?

Operation research may be used at different stages of Government or corporate functions, business operations that may include a product or a service sale or similar other complex operational activities. The key uses are as follows –

1. Operation research helps in different types of urban and rural planning.
2. It is helpful for network optimization and engineering.
3. Inventory management can be done more efficiently because of operations research. 
4. Operations research is used for Enterprise Resource Planning (ERP) and Supply Chain Management (SCM).
5. The risk of the firm can be minimised if proper techniques of operations research are followed.
6. Operation research helps in time management as well as logistics optimisation.

The method of operations research started during World War II days by the planning wing of the military. Later on, such techniques were passed on to the Government, society and business at large. However, operations research today is way different from those practised in those days in terms of technological approach.

Research is required mostly for project management, personnel management, and production management. Risk analysis, cost control and keeping time schedules are the key parameters during research.

Present-day professionals are offered robust subject courses like fintech in banking and finance, so that they may become powerful Operations Managers or Operations Research Analysts in the future. 

Conclusion

The demand for Operation Research Analysts is growing because each organisation wishes to make a correct decision based on scientific research and modelling. An MBA in fintech is all the aspirant needs to complete for his or her successful grooming. Fintech in banking and finance gives a double advantage of management skills and modern global technology to the candidate over and above his or her core finance knowledge. 

The MBA in Fintech course at Imarticus will give prospective candidates the perfect start to their careers. The duration of the course is 2 years. The mode of training is offline. 

Visit the official website of Imarticus for more details on this course.