In-depth guide to different types of operations management

February 19, 2024 - 10 min read

Wrike Team

What do you think when you hear the phrase operations management? A dry topic reserved for the boardroom? Well, operations management is actually all around us. I want you to think of the last time you ordered a coffee or bought something online. You know, the process that ensures your coffee is hot and your package arrives on time? That’s operations management in action.

Whether it’s a small café or a global tech company, every business relies on effective operations management. However, not all operations management is the same. Different companies have different needs, and how they manage operations reflects that.

Some focus on making products, while others concentrate on providing services. Some prioritize speed and efficiency, while others put quality or flexibility first. With the introduction of work management software like Wrike, the days of juggling multiple projects are over. You can have a streamlined process where every project, from your café’s daily inventory restock to the next groundbreaking tech release, starts with all the information you need right at your fingertips.

Organize your workloads and reach your operational goals with Wrike — start your free trial now.

This article will cover the different types of operations management, from manufacturing and service operations to project-based operations. We’ll check out how each type works, their challenges, and the strategies to overcome them. By the end, you’ll understand what operations management looks like in various settings and why it’s such an important part of any business.

So, if you’ve ever wondered how your favorite products are made or how services are delivered so seamlessly, you’re about to find out. Are you ready to peel back the curtain and see what makes it tick?

Understanding operations management

Have you ever wondered how things just work in a business? Let’s break down operations management into something we can all relate to. You’re planning a big road trip with your friends. You’ve got to figure out your route, what snacks to bring, how to keep entertained, and where to make pit stops. In a way, you’re managing the operations of your road trip to ensure everything goes smoothly.

Now, apply that thinking to a business. Operations management is the art and science of ensuring a company’s day-to-day activities run without a hitch. It manages all the processes that go into producing goods or services, from the initial idea to the customer’s hands.

Operations management is a relentless quest for improvement. You need to ask yourself, “What can I do better?” Wrike’s operations templates can help you manage your daily operations. These templates include everything from employee onboarding and offboarding to detailed attendance tracking and inventory management.

Consider the attendance tracker template, for instance. It simplifies tracking employee presence, ensuring that staffing needs are always met without the hassle of manual checks. Or the vendor management template, which provides a clear overview of stock levels, aiding in timely reorder processes and preventing overstocking or stockouts. And for those looking at the bigger picture, the business model canvas template allows teams to visualize and plan their strategies comprehensively.

Without operations management, businesses could quickly fall into problems. Imagine a restaurant that doesn’t plan its menu properly, runs out of ingredients, or fails to serve meals on time. Customers would be unhappy and the business would suffer. That’s why effective operations management is so important.

Operations management also involves finding ways to do things better. You need to ask yourself, “How can we make our products even better?” or “Is there a faster way to deliver our services?” By continuously looking for improvements, businesses can stay ahead of the competition and keep their customers returning for more.

Next time you enjoy a seamless experience with a product or service, remember there’s a lot of operations management magic behind the scenes.

Enjoy an intuitive, visual layout of your strategic operations with Wrike — start your free trial now.

Here are several key functions that are essential for the smooth functioning of an organization:

Planning: Operations managers are responsible for developing strategic plans to achieve organizational goals. This involves forecasting demand, setting production targets, and creating schedules to optimize resource utilization.
Organizing: Operations managers coordinate allocating resources, including personnel, equipment, and facilities. They design workflows, establish production processes, and implement systems to maximize efficiency.
Controlling: Operations managers monitor production processes, assess performance against targets, and implement corrective actions when necessary. They use key performance indicators (KPIs) to measure productivity, quality, and cost-effectiveness.
Improving: Operations managers continually seek ways to improve processes and enhance performance. They analyze data, identify bottlenecks, and implement process improvements, such as lean manufacturing techniques or automation.

Types of operations management

Here are the different types of operations management, each with its focus and objectives:

Service operations management

How do top-notch services come your way with a snap of your fingers? Well, that’s service operations management in action. This could be anything from running a hotel to operating a bank or providing internet services. Here, the focus is on delivering top-notch service to customers. It’s not about tangible products but ensuring customer satisfaction through efficient service delivery. Managing staff schedules, ensuring speedy service, and maintaining high customer service standards are all part of the mix.

Ensuring everyone gets quick, top-notch service is as important as having a happy, well-organized team that provides services to your customers. Imagine how useful it would be if you could see exactly what each part of your team is working on and how it all ties together.

That’s where Wrike’s cross-tagging shines. It lets teams see tasks in the bigger picture of their projects and the company’s goals. With Wrike’s cross-tagging, you can bookmark those key tasks and subtasks, no matter where they live — be it in folders, milestones, phases, or across various projects.

This feature is a game changer, especially when you need to zero in on specific details without losing sight of the big picture. Let’s say you’re overseeing the budget for a series of events. With cross-tagging, you can tag just the budget-related subtasks and have them appear in your folder or a specific project report. It streamlines your focus, ensuring you’re always in the loop with the tasks needing your green light.

Production operations management

This is all about making stuff. Whether it’s cars, smartphones, or your favorite chocolate bars, production operations management focuses on turning raw materials into finished goods. It involves planning production schedules, managing inventory, and ensuring machinery is humming without a hitch.

Project operations management

Big projects, tight deadlines! How do the pros handle it? Let’s find out! Project operations management emphasizes executing specific organizational projects. This could be constructing a building, developing new software, or organizing a marketing campaign. It focuses on hitting those milestones and achieving the project goals within the set time frame and budget.

If you’re working on a big project, Wrike’s Kanban board lets you break it down into smaller phases or stages. You can see if something’s stuck and move things around so the work keeps flowing. It keeps things smooth and makes sure nothing stops the whole process.

Supply chain operations management

Ever been in a relay race where the baton passes through multiple hands as smoothly as possible? That’s precisely what supply chain operations management entails. Supply chain operations management ensures that products move seamlessly from suppliers to manufacturers, then to warehouses, and finally to stores or directly to customers. It oversees the entire supply chain to minimize costs and maximize efficiency. Coordination and collaboration across different segments ensures that customers get what they want, when they want it.

Inventory operations management

Inventory operations management focuses on the efficient management of inventory levels. This type of operations management is important in industries where inventory plays a significant role, such as retail, manufacturing, and e-commerce.

You’ve got to keep enough stock so customers find what they need when they need it, but not so much that your storage costs go through the roof. You can have a central spot where you can see everything about your inventory: what’s flying off the shelves, what’s gathering dust, and when it’s time to reorder.

Wrike’s dashboards can be a handy tool here, helping pull all this information together and making it easier to keep your inventory lean but not too lean. With Wrike, you’re not just guessing when to order more products or which items are your bestsellers. The dashboard shows you real numbers and trends, helping you make informed decisions.

And if you need to adjust your team’s focus, say, to handle a sudden spike in demand for a hot product, Wrike’s intuitive Workload view lets you redistribute tasks with a simple drag-and-drop action.

The role of operations managers

If you think being an operations manager is a walk in the park, think again! What does it really take to be an operations manager? Operations managers analyze market trends, assess competitors, and identify growth opportunities. Based on this analysis, they develop strategic plans, set objectives, and allocate resources to achieve organizational goals.

Here’s a closer look at their functions:

Process optimization: Operations managers are relentless in their pursuit of efficiency. They meticulously analyze current processes to identify bottlenecks and implement improvements. This could mean reorganizing workflows, introducing automation, or adopting Lean manufacturing principles to reduce waste and increase productivity.
Resource allocation: They master the art of resource management, ensuring that every project or task has the necessary inputs — be they human resources, materials, or finances.
Quality assurance: Maintaining the highest quality standards is non-negotiable. Operations managers establish rigorous quality control protocols to ensure that every product or service meets the organization’s and customers’ standards.
Team leadership: Beyond managing processes and systems, operations managers lead teams. They are responsible for hiring, training, and motivating employees, creating an environment where teamwork and productivity thrive.
Strategic planning: Operations managers forecast demand, assess market trends, and prepare the operation to meet future challenges. This includes capacity planning, supply chain management, and investment in new technologies or methodologies.
Risk management: Whether it’s supply chain disruptions, equipment failures, or changes in market demand, operations managers identify risks and develop mitigation strategies to keep the business on track.
Customer satisfaction: Operations managers streamline the delivery of products and services, ensuring that customers’ needs are met promptly and efficiently.

Modern trends in operations management

So, what’s new in how companies work? From robots in the warehouse to meetings in the cloud, things are changing fast. Operations management is a dynamic field that constantly evolves to meet the changing needs of businesses. Several trends have emerged in recent years that are reshaping how organizations approach their operations. Here are a few of them:

Technology

Automation, robotics, AI, and data analytics have impacted operations, including production, inventory management, and supply chain optimization.

Keeping up with all the moving parts can be tough when running a business. According to Wrike’s efficiency report, 82% of business leaders say their teams already use AI in their software applications. And more than 80% are planning to dig deeper into their pockets to make the most of AI and automation.

If you want to zoom in on what the experts are saying, Alexey Korotich, Wrike’s Vice President of Product, recently made some predictions about generative AI. He said: “Organizations will shift from experimentation to working with artificial intelligence more meaningfully. AI will help companies analyze and connect many data sources, creating more transparency and providing critical insights that ultimately help teams make better decisions.”

It means less time digging for what you need and more time doing the stuff that really counts.

Sustainability and green energy

Going green isn’t just for Earth Day! How are businesses weaving sustainability into their operations? With growing concerns about environmental sustainability, operations managers are increasingly focusing on adopting eco-friendly practices. Green operations management minimizes waste, reduces energy consumption, and implements sustainable manufacturing processes. For example, implementing energy-efficient technologies and practices can reduce energy costs and create a more sustainable business model.

What’s more, customers are becoming more environmentally conscious and are actively seeking out businesses that prioritize sustainability. By incorporating green practices into their operations, organizations can attract environmentally conscious consumers and gain a competitive advantage in the market.

Globalization

How does a decision made thousands of miles away affect your local market? Operations managers face the challenges of managing global supply chains and international operations. They need to navigate cultural differences, legal requirements, and logistics complexities.

This requires a deep understanding of international markets and effective communication and collaboration with stakeholders from different cultural backgrounds. Despite the challenges, globalization also presents opportunities for organizations to expand their reach and access new markets. Organizations can tap into new customer bases and achieve economies of scale by effectively managing global operations.

By keeping up with modern trends and embracing advancements in technology and sustainability, operations managers can continue to enhance productivity, improve customer satisfaction, and contribute to the long-term success of their organizations.

Leveraging the right tools in operations management

And that’s a wrap! Aren’t you feeling like an operations expert now? We’ve covered a lot of ground! From understanding the basics to exploring various types of operations management, we’ve seen how this field keeps the wheels of business turning smoothly.

But what does this all mean for you, the reader? Maybe you’re an operations manager, a business owner, or someone curious about the inner workings of successful companies?

It means the secret to keeping your business wheels turning are the everyday tools that bring your operations to life. With Wrike, you can see the big picture and the tiny details all in one place with dashboards that track your projects. You can see how your teams fit into various projects, ensuring you’re always in the loop through cross-tagging. You can cut through the noise of miscommunication with request forms that capture all the info you need upfront. Gone are the days of back-and-forth emails trying to gather project essentials. Now, you can kick-start your operations with all the details from the get-go, ensuring every team member knows exactly what to do and when.

Matt Andrews, Marketing Campaign Manager at Aerotek, succinctly captures the impact of using Wrike into your daily workflows.

“Rather than a call or email resulting in a longer call or meeting, they now go to Wrike and fill out a very robust request form. It creates the job your team is going to work on from start to finish.”

Whether you’re fine-tuning your current operations or steering your business into new territories, remember that tools like Wrike support you every step of the way. Why not take the first step today?

Start your free trial with Wrike and see how it can transform your operations management for the better.

Note: This article was created with the assistance of an AI engine. It has been reviewed and revised by our team of experts to ensure accuracy and quality.

Wrike Team

Occasionally we write blog posts where multiple people contribute. Since our idea of having a gladiator arena where contributors would fight to the death to win total authorship wasn’t approved by HR, this was the compromise.

#Team Management #Templates #Operations Management #Career Advice

Project Management 10 min read

An Epic Change: How the Odyssey Hotel Group United Operations in Wrike

Discover how the Odyssey Hotel Group used Wrike to unite disparate teams, streamline processes, and create a single source of truth for multinational operations.

Productivity 10 min read

Organizational effectiveness: Definitions, models, and examples

Learn all about the concept of organizational effectiveness and explore various theories and models in our new blog post.

Project Management 10 min read

Why Your Operations Team Needs a Sales Tracker

Sales is part art and part science. It balances a charisma, careful relationship-building, and gut feelings with refined processes, clear metrics, and data-backed decisions. It's a balancing act. And sales can feel even more complex because it's a function without a clear start and stop. Sales teams are responsible for nurturing and converting leads but also retaining and even upgrading existing customers. Needless to say, any sales professional will readily admit that there are a lot of moving parts — and that's exactly why a sales tracker can be so beneficial. What is a sales tracker? As the name implies, a sales tracker is a tool or database that stores, organizes, and manages all of the information and updates that are relevant to your sales process. While you might readily think of keeping track of any sales your team makes, a sales tracker is far more comprehensive than simply logging your closed deals. It should also house things like: Contact information Leads and opportunities Conversations and outreach Lead and customer history Sales goals and success metrics Put simply, your sales tracker is the single resource where your entire team will record, conduct, and maintain all of your different sales activities. Who uses a sales tracker? Hear the term "sales tracker" and the answer to this question seems pretty straightforward: the sales team. Of course, the people on your sales team will do the bulk of the day-to-day work with your sales activity tracker. They'll use it to set goals, monitor performance, and manage their daily tasks. But this tool is far-reaching and offers benefits for other people and departments, such as: Leadership can use the sales tracker to understand performance, make projections, and set realistic organizational goals Marketing can use the sales tracker to understand the sales process and how they can better support lead conversion and customer retention Customer support can use the sales tracker to understand how they can provide better service and minimize objections during the sales process So, while a sales team will be the ones who are in the weeds with a sales tracking platform on a daily basis, they certainly aren't the only ones who will benefit from it. In fact, sales trackers are most advantageous when they're shared across the organization so everybody can understand what it takes to get new customers to come (and stay) onboard. How to Train Your Team to Use a Sales Tracker Implementing a sales tracker tool is a significant step towards streamlining your sales process. However, its success largely depends on how effectively your team can use it. Here are some steps to ensure your team is well-equipped to use the sales tracker: Start with an Introduction: Begin by explaining what a sales tracker is, its benefits, and why the company has chosen to implement it. Highlight how it can make their work easier and more efficient. Detailed Demonstration: Conduct a step-by-step walkthrough of the sales tracker. Show them how to log in, update information, track progress, generate reports, and use any other key features of the tool. Hands-On Training: Allow your team members to explore the tool hands-on. This could involve creating dummy data for them to play around with, or real-life scenarios to practice on. Provide User Manuals and Guides: Create detailed user manuals and guides that team members can refer to when they need help. These resources should be easily accessible. Regular Follow-Ups and Support: Conduct regular check-ins to address any issues or challenges your team may be facing. Encourage them to share their experiences and provide necessary support and solutions. Continuous Learning: As the tool gets updated or new features are added, ensure to update your training materials and conduct refresher training sessions. Remember, the goal is to make your team comfortable and proficient with the sales tracker. This not only requires initial training but also ongoing support and learning. Why is sales tracking important? Perhaps you and your team have been making things work without a unified sales activity tracker. Why bother going through the work of pulling everything into one place? Having a centralized spot to manage all of the stages and tasks in your sales process does more than help you figure out how to keep track of sales. It offers a number of other distinct advantages, including: Organize and centralize your information: You might be able to limp along with scattered spreadsheets and siloed email threads, but it's definitely not the most efficient or effective way to get things done. A sales tracker offers a single source of truth that people can reference for any sales activity — whether it's finding a customer's contact information or understanding the last time anybody touched base with a lead. Increase visibility: Related to the above, sales really is a team function. While individual salespeople are undoubtedly pursuing their own quotas, ultimately the whole team is working toward a broader goal of making as many sales as possible. What happens if somebody is on vacation? Or goes out on leave? Or leaves the company entirely? A sales tracker gives everybody the context they need about relationships with various leads and customers – so they can step in seamlessly without missing a beat (or an opportunity). Plus, leadership has instant and easy visibility into what the team is doing and how they're performing. Identify opportunities for improvement: A sales tracker boosts visibility across the team and the entire organization, but it also gives you better insight into the various phases of your sales process and pipeline. Is it taking you too long to touch base with qualified leads? Are people losing interest during a particular point in the process? Are certain salespeople way outperforming others? Your sales activity tracker empowers you with the information you need to further refine your sales processes. Close more deals: Combine all of the above and you get the biggest perk of all: a better sales process that helps you close more deals. Salespeople aren't spending as much time searching for information or getting up to speed on a lead's relationship. That means they can channel more time and energy into nurturing that relationship and converting the lead. It's little wonder why 54% of sales professionals say technology is a great resource for building stronger relationships with buyers. The same report found that 54% of sales representatives also say that digital sales tools help them win over more prospects. Making sales is one of the biggest driving forces behind your organization's success — and it deserves more than random spreadsheets, disparate dashboards, and dated Rolodexes. With a sales activity tracker, you and your team readily have the information you need to pursue your ultimate goal: closing more deals. What makes a good sales tracking platform? You're convinced that a sales tracker is a resource your team can't go without any longer. How do you get started? There are plenty of sales and operations teams that opt to track sales and all related activities in a centralized Excel spreadsheet. Here are a few popular sales tracker templates: HubSpot's lead tracker spreadsheet Excel's online sales tracker HubSpot's CRM spreadsheet However, spreadsheets do have some pitfalls — particularly since they require manual updates and lack a lot of the time-saving integrations and automations you'll find in dedicated sales tracking or work management platforms. Additionally, sales is an important function with tons of different aspects. You need a solution that can manage and monitor them all, which means you might quickly outgrow a spreadsheet (or run the risk of it becoming too large and unruly to easily reference and use). Fortunately, other technology steps in where spreadsheets fall short. There are other options (like Wrike!) that can help you manage your sales process and avoid the drawbacks of traditional spreadsheets. Here's what to look for as you figure out what sales tracking platform is best for you and your team. Sales forecasting You don't just need to make sales — you need to estimate how many deals you'll close in a given time period. This isn't about shaking a Magic 8 Ball or pulling a random number out of a hat. You need to base your forecast in data and history. That's hard to do if you don't have a place where you can access your past performance. Your sales tracker should display all of that relevant data — how many leads you converted, how many customers churned, the average size of each deal, and more — so that you can better estimate your projected revenue moving forward. Beyond informing your projections, your sales tracker should also have a place where you can store your estimates and even use them to establish success metrics that will help you monitor your team's progress. New lead tracking Marketing teams know that lead generation is a relentless challenge. But when you finally have those qualified leads in the pipeline, the hard work isn't over. In fact, research shows that many sales teams struggle with nurturing leads, which is arguably one of the most crucial parts in the sales process. When asked about their greatest challenges to lead conversion: 43% of companies say they struggle to collect enough data on leads 41% of companies say they struggle to follow up with leads quickly 39% of companies say they struggle to make initial contact with leads 35% of companies say they struggle to maintain contact with leads 29% of companies say they struggle to filter and funnel leads 25% of companies say they struggle to set appointments with leads A sales tracker can help with all of these. It pulls all of your leads into one place and also stores all of the must-know information about them. Plus, a sales tracking platform will nudge the process along with features like clear task assignments, reminders for when it's time to check in, and tags so everybody can quickly see what step of the process a lead has reached. Less leads getting lost in the shuffle means more revenue on your team and company's balance sheet. Activity tracking Has anybody reached out to that customer about upgrading their account yet? When's the last time somebody got in touch with this super qualified lead? Who's generating your sales report this month? Sales teams are spinning a lot of plates. It can be tough to keep track of what you need to do on your own — let alone everything that the entire team is working on. Needing to check disparate spreadsheets and platforms wastes time and also leaves too much room for errors. Team members could step on others' toes or, potentially even worse, let an important task or lead slip through the cracks. A sales activity tracker brings some order and visibility to everything that the entire team is doing so that your sales operation can run like a well-oiled machine. Most platforms will include: Clear task assignments Due dates Labels Status updates No more guessing about who's doing what (and when). Your sales tracker will spell it all out for you so that you can boost productivity and performance. Data visualization Staring at seemingly endless rows of digits and dates is enough to make anyone's eyes glaze over — especially if you're searching that spreadsheet for one number or piece of information. That's why it's important to look for a sales tracking platform that has data visualization features. This will break your complex rows of data into more digestible and actionable charts and graphs. Whether you need to get a grasp on your revenue, number of leads, average deal size, or any other sales-pertinent metric, your sales tracker will quickly and painlessly get you the information you need — without having to comb through daunting spreadsheets. Plus, data visualization makes it far faster and easier to create any important sales reports and prove your value to other departments and company decision makers. Future Trends in Sales Tracking Sales tracking is an evolving field, with new technologies and methodologies constantly emerging. Here are some trends to look out for in the near future: Artificial Intelligence (AI) and Machine Learning (ML): AI and ML are set to revolutionize sales tracking. They can analyze past data to identify patterns and predict future outcomes, helping sales teams to make more informed decisions. Additionally, AI can automate routine tasks, freeing up time for salespeople to focus on more strategic activities. Predictive Analytics: Predictive analytics tools will become more sophisticated, enabling sales teams to forecast sales trends more accurately and plan their strategies accordingly. Integration with Other Tools: Sales trackers will increasingly integrate with other tools such as CRM, marketing automation, and customer service platforms. This will provide a more holistic view of the customer journey, enabling sales teams to tailor their strategies more effectively. Mobile Sales Tracking: With the rise of remote work, mobile sales tracking will become more prevalent. Sales teams will be able to update and access sales data on the go, making them more agile and responsive. Real-Time Reporting: Real-time reporting will become a standard feature of sales trackers. This will provide sales teams with up-to-the-minute data, helping them to respond quickly to changing sales trends. These trends represent exciting opportunities for sales teams. By staying ahead of these trends, sales teams can leverage the latest technologies and methodologies to improve their performance and drive sales growth. Step up your sales efforts with Wrike Whether it's art, science, or a little bit of both, sales is one of your company's most important functions — it has a direct and undeniable impact on your growth and your bottom line. That means it's worthy of some careful planning, strategy, and organization. Siloed spreadsheets and sticky notes aren't going to cut it when it comes to a winning sales process. Ready to get started with sales tracking software that helps you close more deals (with less stress)? Wrike has tons of features to level-up your efforts, including: Automations to streamline your entire sales process Easy and intuitive lead organization Tailor-made blueprints and checklists for lead tracking Real-time communication tools Reports to analyze performance, find patterns, and refine your sales techniques Integrations with other popular sales apps Customizable sales templates to save you time Don't leave your organization's sales success up to chance (or spreadsheets). Get the order and organization your sales team deserves. Get started with a free trial of Wrike today.

For Teams

Use cases

Apps & Integrations

Explore Wrike

Learn and connect

Become Wrike Pro

In-depth guide to different types of operations management

Understanding operations management