150 words as reply to this post if in text cite use reference and user APA (7th Edition) Adriana Rangel Operations Management Theory refers to the application of various strategies used in organizing and administering business practices with the goal of promoting efficiency in production in a company (Boyd, 2021). Operations Management Theory (OMT) has many benefits towards boosting an organization’s productivity and return on investment. Majority of times, a company’s various departments all fall under operations for both short and long-term goals, and regardless how many leaders oversee this, it is critical for them to know their customers, have strong communication skills, and understand their company’s finances. The Operations Manager(s) must know which customers to target, how to effectively communicate internal company information to employees, customers, and vendors, and they must comprehend the company’s goals, cost productions, budget cuts, break-even-points, etc. to successfully oversee and manage the application of Operations Management Theory. Having a focus on OMT helps an organization function more smoothly in many ways. Listed below are a few examples of those ways. Profitability Management. Having an experienced operations manager in the company allows for new ideas to help monitor revenue and expenses to potentially increase sales. Competitive Advantage. Having a business that understands and knows how to manage their operations creates successful internal and external factors such as operating policies, average attrition rates, intellectual capital, etc. Understanding these factors also enhances the competitive standing of the organization’s existing market. Regulatory Compliance. Having a great deal of knowledge of the various operating activities helps corporate management dismiss themselves of enormous government fines and adverse regulatory decisions. It is the Operations Manager’s responsibility to perform appropriate internal controls to ensure that duties are performed in accordance with the rules and regulations.
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