I’ve three questions for you…
If you answered “yes” to any of these, you need to improve your operations. It simply means having a clear operations management process in place so your business can run well, with or without you.
Use this blog as an instruction manual to fix your operations, from how you handle customer orders to how your team gets work done.
So, let’s get started…
Operations management is simply how you get things done in your business. It means using your resources like raw materials, money, people, and time to deliver quality products or services on time and at a lower cost.
How do good operations help your business, really? Let’s look at the importance of operations management.
Good operations are the foundation of a strong business. Without it, things start to crack when the pressure is high. The primary business operations role is to make sure operations are running efficiently.
Here’s what happens once you get your operations right:
By setting up better processes, you cut down on waste like waste material, wasted time, and wasted effort. This directly lowers costs and boosts profits.
Good operations mean you deliver on time and with quality. This reliable service with consistent quality builds trust and turns one-time buyers into loyal fans who not only come back but also become referrals for new buyers.
When your business runs on a system, you spend less time fixing problems and being a firefighter and more time thinking, planning, and working on growing the business.
Good systems make it easy to grow. When you have clear processes in place, you can handle more orders and clients without stress or loss in quality.
Streamlining your operations helps you deliver faster, achieve better pricing, and maintain consistent quality, which makes you more reliable than your competitors.
In most MSMEs, a small team handles many jobs at once. That’s why it’s important to understand the key functions of operations management (OM).
Improving how you work should be a constant habit. Small, regular changes can help your business run smoothly and save money. These functions are the nature of operations management and the skills required to do it effectively.
Setting operational goals, forecasting demand, and determining resources.
Arranging resources (people, materials, equipment) and designing workflows.
Guiding work, overseeing daily activities, and motivating staff.
Monitoring performance, ensuring quality, managing inventory, and controlling costs.
Ensuring designs are producible efficiently and meet customer needs.
Managing the material supply from suppliers to customers, including procurement and logistics.
Continuously analyzing and enhancing operational management processes for efficiency and quality.
Understanding these basics is the first step. Master them, and your business won’t just survive, it’ll grow strong.
Keep reading to learn how to use each of these steps to build a solid operations system, one step at a time.
What kind of operations do you have?
Whether you’re making a product or offering a service, knowing the type of operations you handle helps you run your business better.
If you make physical products, your main focus is on how they are produced, stored, and delivered.
A clear production and operations management definition involves transforming raw materials into finished goods efficiently.
These areas you need to focus on –
How smoothly do you turn raw materials into a finished product?
Are your tools and machines working well and being used properly? Keep them in good shape to avoid delays.
Is every item you produce just as good as the last? Make sure what you sell is good and matches what you promised.
This is the most important part! Keeping just the right amount of raw material and stock. Too much can block money, and too little means missed sales.
If you offer services, means your “product” is your skill, your time, and the experience. Your focus is on how the customer feels and how smooth your service is.
These areas you need to focus on –
How does the customer feel from the moment they contact you to the moment the job is done? How you talk, behave, and treat your customers.
Is your team well-trained, motivated, and great at dealing with people? Keep the service good every single time.
Does every customer get the same high level of service every time? This builds trust and reputation.
How quickly can you help your customers and solve their problems? No one likes to wait. Serve quickly and handle issues fast.
If you sometimes take on special projects that have a clear start and finish. It’s not your regular day-to-day work. That’s project work.
These areas you need to focus on –
Break down the task. Set clear steps that need to be done, from start to finish.
Assign each task to a specific person in the team and give them what they need to complete this project.
Calculate how much money and material you can spend on this. Don’t overspend or waste resources.
Stick to dates so things don’t drag on.
The supply chain is the entire journey your product takes, from people who give you raw materials, making products and selling goods.
When your supply chain runs well, you save time, money, and energy. You avoid late deliveries, stock-outs, and unhappy customers.
These areas you need to focus on –
Choosing reliable people to give you the right materials on time. A bad supplier can shut down your entire business.
It’s about how materials and finished goods are moved to you or your customers, like keeping track of orders, deliveries, stock levels, and customer demands.
Making sure the right product reaches the right customer at the right time.
It means managing how much stock you have, like raw materials, work-in-progress, and finished goods. The goal is to always have just the right amount of stock that your customer needs without keeping extra stock.
These areas you need to focus on –
If a customer wants to buy something and you don’t have it, you lose the sale. Have enough stock to meet orders, but don’t overstock.
You have paid for storage space, and there’s a risk the items could get old, damaged, or go out of fashion. So, use your space smartly.
Know what’s in your inventory, what’s sold, and what needs reordering.
Don’t let your money sit in unsold stock. When your inventory is in control, your money flows better. Just stay aware of what’s moving and what’s stuck.
Following a “process” doesn’t require expensive software. It’s about using simple tools to get organized.
Here’s how you can apply the operations management process to your business today.
This is your “thinking” phase. It’s where you guess what’s coming and prepare for it. Good operations planning makes sure that operational goals are aligned with the objectives and goals of strategic management.
Set clear goals on how much you need to produce and sell.
Plan how many people you need and when, so you always have enough people.
Decide on quality standards for your product or service that your team can follow early on.
Simple way to do this – Use a basic spreadsheet to track your sales goals, a checklist for all the tasks involved, and a quick team meeting to make sure everyone knows the plan.
This is about arranging your resources, such as your space, people, and tools, so that work flows smoothly.
Create a layout of the simple steps from taking an order to delivering it to the customer.
Set up your shop or office so that work moves smoothly from one step to the next without wasting time.
Give each team member a clear role. Even in a small team, make sure everyone knows their primary responsibilities.
Simple way to do this – Use a free online flowchart maker or even just a whiteboard. For your instructions, a simple SOP template in a document is perfect.
This is the “plan is action” part. It’s about making sure the plan is being followed.
Guide your team in daily operations and be there to solve problems as and when they occur.
Make sure the work is done right and on time. Your hands-on approach is your biggest strength.
Simple way to do this – Keep everyone on track with a daily work schedule posted where everyone can see it, and use job cards that follow a specific order from start to finish.
This is about checking regularly to see if you’re on track and everything is aligned with the plan and set goals.
Look at daily sales, expenses, and stock. Are you making a profit?
Is every product or service you deliver checked against all quality standards? If not, check quality and fix what’s not working.
Check your inventory. Stick to your budget and don’t let your money get stuck in unnecessary stock.
Simple way to do this – Do regular check-ins with your team. Send out a simple customer survey via WhatsApp or email. Track a few key numbers to see if you are winning.
Make products or services that are easy to sell and that your customer wants.
When designing new products, keep your production process in mind. Design only smart products and services that can be easily sold.
Keep it consistent every time. Create standard steps for your service so every customer gets the same great experience.
Simple way to do this – Get customer feedback chats, brainstorming meetings, simple sketches or mock-ups, and a standard service menu or script.
Your business is only as strong as the materials you get. Check the flow of materials from suppliers to customers. Make sure it is a seamless supply chain process.
Choose reliable vendors and work with suppliers who deliver on time.
Manage all deliveries and stock. Set a schedule when you get your materials to avoid delays.
Make sure you deliver products to your customers on time, so you can deliver on time.
Simple way to do this – A list of trusted suppliers with their contact details and ratings, a simple delivery schedule calendar, and basic order tracking sheets.
Always look for better ways to improve your operations.
You can ask your team every week or month, “What’s one small thing we can do better?
Find little ways to cut waste and save time. Improve step by step, not all at once. These small steps add up to big savings.
Simple way to do this – The best tools are a short team review meeting, a suggestion box for new ideas, and a “lessons learned” notebook to make sure you don’t repeat mistakes.
Why does operations management feel so hard for MSMEs?
You know that managing your team, machines, orders, and suppliers is called operations management.
Doing it right can save money, reduce stress, and help you grow. But many MSMEs face problems in this area.
Here are the common challenges MSMEs like yours face
This is the biggest issue. It’s a constant struggle with not having enough money for new equipment, finding skilled employees who will stay, and affording technology to fasten your operations. And this affects almost everything
When your business starts to grow, things get messy. The simple system that worked when you had a small team started falling apart as you got more orders. Suddenly, managing quality, speed, and customer satisfaction gets harder.
Getting raw materials on time, managing stock, and delivering products without delays becomes hard when you have unreliable suppliers, changing prices, and high shipping costs. Plus, you get the constant stress of managing your stock.
You’re likely competing against larger companies with bigger names, deeper pockets for advertising, and the ability to offer lower prices. This becomes hard for MSMEs to build brand awareness or expand into new markets without support.
If your day-to-day work feels chaotic, you’re not alone. When there are no clearly written-down steps or defined operational processes, it leads to confusion, wasted effort, and repeated mistakes.
Handling taxes, permits, labour laws, and rules takes time and knowledge. It’s a full-time job in itself, especially when you can’t afford legal or admin help.
Without mentors or a strong network, it’s hard to plan well, manage teams, or study the market. The skills required for operations management are broad, and it can feel like you’re firefighting every day, trying to figure everything out on your own.
You might think “Operations Management” sounds too big or complex with so many systems to decide or build, but it’s actually just about making your daily work smoother, faster, and smarter.
Here are some simple examples of how different types of businesses can improve their operations.
Sometimes, you understand an idea better when you watch it in action. Let’s explore how some businesses, both large and small, applied basic operations thinking to address their challenges.
So, what’s the one thing to remember from all this? Managing your operations is how you stop your business from running you and start running your business.
It’s not about making huge, expensive changes overnight. It’s about taking small, smart steps to improve your operations management process –
Build a simple plan that matches your business goals, stick to it, and improve as you go. This way, you’ll be ready for challenges, stand out in the market, and grow stronger in the long run.
This article was just the beginning. Explore our library of articles packed with practical tips to streamline your operations, improve team efficiency, and get you back to focusing on growth.
None can destroy iron, but its own rust can! Likewise, none can destroy a person, but their own mindset can.
Former chairperson of the Tata Group
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