An operation management system (OMS) is basically a set of processes, procedures, and other resources that help optimize the day-to-day operations of a business. An OMS helps a company, or a team, ensure that it is working towards the agreed-upon KPIs and goals.
Depending on the type of OMS you use, it should perform the following functions:
- Automate and digitalize the day-to-day workflow of the employees
- Flag bottlenecks in operational processes and suggest solutions
- Plan and manage everyday production, distribution, and fulfillment processes
- Optimize conversion of materials into goods, and manpower into services
The ultimate aim of an operation management system is to steer a business towards maximum operating profit by utilizing its resources as efficiently as possible.
Here is a look at some key features of an OMS.
Task Management
The efficiency of teams and employees is highly dependent on effective task management. When the right tasks are assigned to the right persons at the right terms, operational efficiency can be achieved in an organization.
An OMS helps you manage task assignments and monitor progress. You can schedule tasks for different team members, see the status of currently assigned tasks, and determine if any changes are needed.
Time and Cost Management
For service-oriented businesses and companies, time and expense tracking are key concerns. You need to be aware of the billable and non-billable hours, and reconcile these with the timesheets of the employees. An operation management system makes this incredibly easy. You can also integrate finance functions to generate invoices and process payments.
Project Management
Instead of investing in separate project management software, you can choose an OMS as it offers a greater scope. A good OMS offers project management as a part of its repository of features. You can plan your project, assign resources, set up schedules, define deadlines, and monitor budget. You can also manage risks using forecasting tools.
Human Resource Management
An OMS allows you to allocate human resources efficiently. You can view all available human resources, and sort these on the basis of skills, bill rates, availability, and other metrics. This helps you quickly chart up the most relevant resources for a given task or project.
At the other end, you can forecast resource demand and then plan resource allocation in advance. An OMS also helps you identify under-utilized and over-utilized resources so that you can handle these.
Supply Management
The logistics of your business supply chain require transparency, efficiency, timely forecasts, and cost-effectiveness. With an OMS, you can track available supplies across multiple locations, get a heads-up about low stocks in time, and get accurate demand forecasting.
You can also see trends from the past related to orders, tracking, shipping, and manufacturing. This helps you see which products or services work best, which suppliers suit your needs, and whether there is any increase or decreased in demand at any given time.
An operation management system relies on proper organization and productivity practices to achieve maximum operational efficiency for your business. With the help of an OMS, you can use your and material resources for the most profitable outcomes.
