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

Dip your toe in 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

• Production, logistics, and supply chain

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 must be optimized, the right staff needs to be employed, 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: Why Is Workplace Communication Important? And How to Improve It

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 are just a few to get familiar with:

Operations research analyst

Average salary: $130,993 [6]

Job outlook: 23 percent growth from 2022 to 2032 (much faster than average) [7]

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: A bachelor’s degree or higher 

Operations research analysts are in demand. Start learning the basic skills needed for this career:

Business operations manager

Average salary (US): $89,771 [1]

Job outlook: 4 percent growth from 2022 to 2032 [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 is typical for more senior positions. 

Read more: What Is an Operations Manager? A 2023 Career Guide

Purchasing manager

Average salary (US): $98,967 [3]

Job outlook: 4 percent growth from 2022 to 2032 [4]

Job description: A purchasing manager buys products, goods, and services for resale by their company. Their 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 and relevant experience. 

Materials manager

Average salary: $95,118 [5]

Job outlook: 6 percent decline from 2022 to 2032 [4]

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

Education: Materials managers (or procurement 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 to start your career in operations management, including on-the-job experience, education, and professional certifications to consider to 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 about five years of 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 and certificates.

Certifications and certificates 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. Several options are available at various levels, from the undergraduate to the graduate, and those with no educational requirements. 

Certifications with few or no educational requirements are wide-reaching and include popular options such as the Certified Business Professional (CBP), offered by the International Business Training Association, and Certified Purchasing Professional (CPP) from the American Purchasing Society.

Become an operations analyst

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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. You'll get introduced to essential process improvement tools, like the Six Sigma methodology and lean supply chains.