Operations Management

Learn the key points and best practices for establishing

a successful operations system in your facility.
 Contents

The Operations Manager . . . . . . . . . . . . . . . . . . 2

Implementing Efficiency Solutions . . . . . . . . . . . . . 4

The Recipe for an Efficient Facility . . . . . . . . . . . . . 5

The Ingredients for

Operations Management Success . . . . . . . . . . . . . 7

Tools for Success . . . . . . . . . . . . . . . . . . . . . . 11

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a wide selection of floor signs, wall signs and other high visibility signage solutions.

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 The Operations Manager

The term “operations” encompasses all the activities an organization must undertake in
order to create and deliver their goods or services to customers. Operations managers
are responsible for coordinating these activities in a manner that maximizes both
quality and profit. A typical example of this position is a plant manager in charge of an
automobile assembly plant.

Since operations managers are concerned with converting labor and materials into
goods and services, they design organizational processes, analyze these processes,
and work to improve them. They balance cost vs. revenue and utilize certain business
practices to create the highest possible level of efficiency. Ultimately, operations is
about producing the right amount of a good or service at the right time, the right quality,
and the right cost to meet customer demand.

Responsibilities of Operations Managers

 Designing and implementing a strategic plan for the

operations process

 Improving productivity, quality, and efficiency to maximize profit

 Embracing inventory management, quality control, and

performance improvement

 Managing assets and costs

 Interacting with managers in other areas such as marketing

and accounting

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 Key Factors to Operations Management

Important takeaway: Two key factors to operations management are understanding how
to maximize efficiency, and successfully coordinating the work of a company.

To be an effective operations management professional, you should understand the

processes required for your company, and how to facilitate those processes so they
work together smoothly. This involves extensive coordination and a solid grasp of your
organization’s specific logistics. Managers often work closely with other departments,
as well as stakeholders or the board of directors, to determine the mission and values
of their business. Operations managers should additionally understand global and local
trends, customer demand, and the resources that are available for their company.

Success may require versatility and innovation. Managers often completely redesign
business operations as they evaluate current processes and develop new ones. Many
operations professionals have an open mind and strong leadership skills.

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 Implementing Efficiency Solutions

Operations managers utilize an approach that satisfies customers’ expectations in a

timely yet cost-effective manner. A main concern is efficiency, for both the customers
and the business; the goal is to deliver high quality goods or services to customers,
while also maximizing profit for the company.

To achieve optimal efficiency, decision-making will play a central role. Decisions will
need to be made for designing, managing, and improving the operations system with
continual consideration of:

Capacity (quantity of goods/services)

Quality (of goods/services)

Inventory

The processes of production

This is where the methodologies of Lean manufacturing can become a highly useful
tool. Lean production maximizes efficiency, eliminates waste, and improves quality
through the use of strategies such as Just-in-Time (JIT) manufacturing (production
based on actual customer demand), Kaizen (a continuous improvement mindset), and
5S (a focus on organization and eliminating waste). These are excellent strategies to
incorporate into an operations design as a method of achieving your business’s mission.

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 Another valuable practice for operations managers is proper pipe marking. Pipe marking
enhances efficiency for employees, maintenance workers, and first responders, and is
an essential component to both safety and organization within any facility that has an
extensive piping network. By labeling the contents of each pipe and the direction of flow,
managers secure a comprehensive understanding of the inner workings of their facility.
Pipe marking also:

• Ensures compliance with ANSI/ASME and OSHA standards, which

helps facilities avoid heavy fines or extended work stoppages

• Prevents waste such as lost time by guiding workers to the

correct pipe, and eliminating the need to trace out pipes in the
event of a leak

• Makes it easier and safer for first responders to complete their

tasks (e.g., secure a hose to a water source)

• Streamlines all operations that concern the piping network and

its contents

LabelTac® Pro X Pipe Marking Bundle shown. Shop for label printers, supply, and
other bundles like this one at www.creativesafetysupply.com.

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 For new operations managers, all of this may seem overwhelming—especially if
you have a large business. Luckily, there are some useful steps you can follow to
successfully conduct operations for your company.

The Recipe for an Efficient Facility

Plan: Develop a Design for your Operations System

A good place for an operations manager to begin is by conducting another

Lean technique: Gemba. Gemba walks involve managers going to “the actual
place”—making observations at the location where the actual work is being done.
During Gemba walks, managers can see firsthand how processes are currently
conducted, and receive feedback from workers on what is working well or if there
are any spots for improvement.

Operations managers should utilize as many resources as they can from staff,
equipment, technology, and other materials as they determine customer needs
and the ability of the company to meet those needs. Managers are responsible
for finding vendors, establishing a production process, and securing the delivery
of goods or services to customers.

Take Action: Implement the Operations System

You need a plan of action for your operations design, and there are a handful
of methodologies that may be helpful to adapt. For example, Total Quality
Management (TQM) features a culture of quality within all aspects of an
operation. A key concept of TQM includes allowing the customers’ requirements
to define exactly what “quality” is to your company. Six Sigma is another ideology
that aims to reduce product defects to near-zero levels by utilizing a cycle of
improvement that slowly reduces defects over time.

As you develop a plan for your operations system and begin to implement it,
remember to check in with all departments of the company to receive input,

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 especially with the workers themselves who will be performing these operations.
Each employee needs to be actively involved in supporting the operations system
in order for it to work. Making your operations methodology part of the daily
mindset all across the board turns your design into ongoing action.

Standardize and Sustain for Continuous Improvement

Once you’ve implemented efficient operations, standardize your system so that

it can be used consistently throughout the facility (or throughout a specific
department). This enables new workers to navigate operations just as capably as
experienced workers. When operations are sustained, this provides a foundation
to improve on.

An easy way to pinpoint areas of improvement is to listen to customer feedback.

Typically, operations managers will follow up with customers to ensure that
goods or services meet their expectations. Then, the manager takes this
feedback and distributes the relevant information to each department within their
company to facilitate improvement, either to the product itself or the process
used to produce it.

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 The Ingredients for Operations Management Success

Inventory Management

A critical component to operations management is the oversight of a company’s

inventory throughout the supply chain. A manager handles different strategic issues,
such as determining the size of the company’s manufacturing space and studying the
company’s use of raw materials. Mangers supervise all inventory levels including these
raw materials, work-in-process, and finished goods. This encompasses the acquisition,
handling, and maintenance of materials.

A main aspect to inventory management—and operations management—is to ensure

minimal waste. Whether raw materials sit idly on shelves, or customers are not
interested in purchasing the finished product, a manager’s job is to prevent these wastes
from happening or at least reduce them as much as possible.

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 Quality Control

In manufacturing, quality control ensures that the goods or services your company
produces meet customer’s needs and are free from any defects. The aim is to produce
the best product you possibly can, and make the production process consistent so that
each product adheres to a quality standard.

There are several quality control tools available, such as fishbone diagrams, control
charts, and checklists, to help operations managers enforce quality control. Each of
these help you track defects to find the source and allow you to ensure the conformity of
products. Remember, operations should be coordinated so quality is maximized.

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 Customer Satisfaction

Operations managers don’t only deal with inventory and physical goods; they also have
an essential role in determining how well their company satisfies its customers. The
ultimate aim of operations, after all, is to produce the right amount of a good or service
at the right time, the right quality, and the right cost to meet customer demand.

A manager should understand demand and what the customers believe a “quality”
product or service is. Operations managers can answer the fundamental questions of:

• What do the customers need?

• Why do they need it?

• What can our company do to satisfy this need?

Operations managers are responsible for ensuring that the company can deliver on
customer expectations, and sustain this delivery in a consistent manner.

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 Training

Whichever way operations managers decide to design their system of operations and
whichever Lean methodologies they select, these protocols should be a central aspect
to training/orientation. Training each worker to have at least a basic understanding of
your company’s operations will seamlessly incorporate mindsets such as Kaizen, Six
Sigma, and TPM into the company’s culture. It also ensures that each worker actively
understands their role in operations success.

To aid in sustaining your operations system, schedule “refresher” training sessions

and walk workers through your design of operations so they’re reminded of rules and
goals. This is a great way to check in and make sure workers are mindful of continuous
improvement, and receive feedback as to what is working well and what is not. You can
schedule these refresher trainings periodically, such as once a year, or schedule them
any time there is a major change to your operations system.

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 Tools for Success

Now that you understand the fundamentals of operations management, here are a few
tools to help you secure the best operations system for your facility.

Implement visual communications with LabelTac®.

LabelTac® Industrial Label and Sign Printers are the best solution available to establish
a visual communication system for your operations. With 7 different ribbon colors, 60
types of label supply, and free LabelSuite™ software, LabelTac® printers make it easy to
communicate the best practices and methodologies behind your operations system.

Encourage a continuous improvement mindset and ensure quality control in your

workplace with labels and signs that remind workers about Lean methods such as
Kaizen and TQM. Let LabelTac® help.

LabelTac® Pro X Industrial Label Printer shown. Shop for label printers, supply, and
other safety products at www.creativesafetysupply.com.

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 Ensure a smooth operations flow with floor marking.

To successfully coordinate the work of your company, it’s important to implement

floor tape such as SafetyTac®. This tape manages traffic, establishes organization,
and visually separates different departments or aspects of operations. SafetyTac®
is designed with a low profile that will hold up to both foot and vehicle traffic, and
withstands any tough environment. Floor marking is a vital part to any successful visual
communication system.

Mark your floors with SafetyTac® Tapes for vivid,

long-lasting aisles and safety markings.

 Low profile, extremely durable

 Resistant to forklifts and other
industrial traffic
 Available in 7 styles and 10 OSHA-
standard colors
 SafetyTac® shapes available for
location marking and wayfinding
 Simple peel-and-stick application • Aisle marking
with virtually no downtime • Pedestrian walkways
• Safety zones
• Work cell boundaries

www.creativesafetysupply.com/safetytac • Equipment safety zone limits

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 Utilize manufacturing tools to incorporate Lean methodologies into your operations.

Are you implementing Six Sigma throughout your facility? Does your operations plan
include a focus on continuous improvement, organization, or efficiency? Use visual tools
like Kanban cards and 5S Red Tags to enhance communications, identify and eliminate
waste, and more as your company incorporates Lean manufacturing practices.

Shop top-ranking products

for organization, labeling, and safety

www.creativesafetysupply.com

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