1.

An operations manager is key part of a management team and oversees

high-level HR duties, such as attracting talent and setting training standards
and hiring procedures. They also analyse and improve organizational
processes, and work to improve quality, productivity and efficiency.

2. The Operations Manager role is mainly to implement the right

processes and practices across the organization. The specific duties of
an Operations Manager include formulating strategy, improving performance,
procuring material and resources and securing compliance. He / She should
be ready to mentor your team members, find ways to increase quality of
customer service and implement best practices across all levels.

Role of an Operations Manager

3. Operations managers oversee the organizational activities of businesses,
government agencies, non-profit groups, and other organizations. These
professionals are talented managers and leaders. They might support
operational leadership in a variety of departments — from finance and IT to
human resources and accounts payable. At both large and small
organizations, operations managers supervise, hire, and train employees,
manage quality assurance programs, strategize process improvements, and
more. Operations managers are ultimately responsible for maintaining and
increasing the efficiency of a business, agency, or organization.
4. Operations Manager Qualifications / Skills:

 Addressing operational concerns and issues, monitoring overall customer

satisfaction
 Developing and implementing operational procedures and policies
 Analysing training needs/requirements
 Excellent interpersonal communication and organizing skills to coordinate
project activities
 Ability to communicate with others effectively
 Ability to conduct research for special projects, respond timely inquiries,
and present written/ oral briefings
 Ability to work with details and time-sensitive issues
 Good decision-making skills and response to high-pressure situations
5. A great operations manager can ensure your business runs like a well-
oiled machine, while a not-so-great one can throw a wrench in your entire
operation. An operations Manager oversees the daily workings of warehouse
operations. He plans, manages, and implements schedules to ensure
deadlines are met, and maintains a high quality standard of product
production and delivery.

6. Operations Manager Responsibilities:

 Provide inspired leadership for the organization.

 Make important policy, planning, and strategy decisions.
 Develop, implement and review operational policies and procedures.
 Assist HR with recruiting when necessary.
 Help promote a company culture that encourages top performance and
high morale.
 Oversee budgeting, reporting, planning, and auditing.
 Work with senior stakeholders.
 Ensure all legal and regulatory documents are filed and monitor
compliance with laws and regulations.
 Work with the board of directors to determine values and mission, and
plan for short and long-term goals.
 Identify and address problems and opportunities for the company.
 Build alliances and partnerships with other organizations.
 Support worker communication with the management team.

7. Key Functions of An Operations Manager:

 Manages the growth and success of the team.

 Coordinates activities that affect operational decisions and business
requirements.
 Responsible for the production, procurement, and planning of daily
operations.
 Communicates with all relevant employees to ensure delivery times are met.
 Plans, schedules, and reviews workload and manpower to make sure targets
are being met on a cost-effective basis.
 Manages the stock control, and checks that inventory records are accurate.
 Ensures the production team has enough time to manufacture and deliver
products based on the client's request.
 Creates a detailed schedule based on strict deadlines.
 Communicates any changes in the order or delivery date to relevant parties
 Monitors production standards.
 Makes sure the working environment maintains access to quality equipment.

 Purchases materials and services required for production.

 Follows up on interruptions to the order.
 Organises, plans, and implements inventory activity.
 Confirms that health and safety regulations are followed.
 Provides guidance to employees.

8. An operations manager is in charge of a company’s productivity, safety

measures, quality control, and staff. It is a senior role, and while the
responsibilities will vary depending on the sector he/ she works in, an
operations manager must take charge of operations, ensure they run
smoothly, fix problems, and come up with ways to make things even more
efficient. He/ She needs to analyse the existing system of production to
ensure it is effective. If it isn’t, it is up to you to bring it up to scratch.

9. The Operations Manager performs a critical oversight function for his or her
company. They monitor operations throughout the company and looks for
ways to increase productivity and lower costs. This person will often be in
direct contact with other managers within the company, working with them to
create policies to improve workflows and minimize points of friction. An
Operations Manager is responsible for keeping track of the big picture and
identifying potential areas of improvement.

10. Required Skill-set of an Operations Manager:

 Leadership: It is a management role, in essence, so you must straddle

the line between ‘friend’ and ‘boss.’

 Problem Solving: Most operations managers will tell you that this role
should be renamed as ‘problem-solving’ manager. Issues will crop up
suddenly and with deadlines looming, staff shortages, and soaring
costs, an Operations Manager will have to find a way to solve the
problem as soon as possible.

 Team working: An Operations manager is always communicating with

staff members and need to ensure the team you are managing works
well together to meet the company’s objectives.

 Planning: An Operations Manager must analyse existing information

and use this data to create plans to help move the company forward.
Your firm obviously has competitors, so the onus is on you to keep the
organisation ahead.

 IT: Operations managers in every industry must keep up to date with

relevant IT systems related to their workplace; while keeping in touch
 with the latest important technological advances in your sector.

 Presentation: Stakeholders want to see a clear plan of action so be

prepared to present details of their ideas regularly.

11. Required Qualification & Training:

An Operations Manager must show detailed knowledge of the following:

 Business management principles and practice.

 Finance and accounting principles.

 Knowledge of human resources.

 Plenty of production experience in the requisite industry.

 Knowledge and experience in operations management and organisational

effectiveness.

12. Knowledge of IT is essential for the role of an Operations Manager and he /

she has to strictly enforce policies to protect the work culture. Of course, they
will have to recognise data trends to run the organisation on a day-to-day
basis and also to plan future projects. It is a coveted job in many ways
because it is more likely to provide them with stable working hours than other
sectors. The decision-making skills, Operations Manager shows in the role
are transferable if they ever decide to change the industry.

13. Key Objectives of an Operations Manager:

 Develop, implement, and maintain quality assurance protocols

 Grow the efficiency of existing organizational processes and
procedures to enhance and sustain the organization’s internal capacity
 Actively pursue strategic and operational objectives
 Ensure operational activities remain on time and within a defined
budget
 Track staffing requirements, hiring new employees as needed
 Oversee accounts payable and accounts receivable departments
 Maintain constant communication with management, staff, and vendors
to ensure proper operations of the organization

14. As a Construction Operations Manager, one is charged with guaranteeing

the commercial viability of each project by working with project
 managers to ensure resources are properly allocated. In this role, they
can find work in an oil and gas exploration firm, a civil engineering company,
or a standard building business. One of their primary objectives is to meet
project budgets, so they will have to assess the financial and operational
risks for potential construction projects and help the firm choose the most
financially viable ones.
Important skills include leadership and multitasking. It is also helpful if they
are an expert communicator since they have to explain technical information
to clients. This role also involves designing and executing construction
strategies in case of unforeseen events such as a natural disaster.

15. Daily and Monthly Responsibilities

 Lead, motivate, and support a large team within a time-sensitive and

demanding environment, including setup and implementation of career
development plans for all direct reports and problem resolution
 Manage timely data collection to update operations metrics to achieve
productivity targets, reduce cost per unit, eliminate errors, and deliver
excellent customer service
 Partner with cross-functional support teams in improving the
proprietary tools and systems
 Work closely with legal and safety departments to make sure activities
remain compliant
 Oversee materials and inventory management
 Conduct budget reviews and report cost plans to upper management.

16. Retail inventory management is what keeps your whole business in order. t
is the set of systems and tools you use to keep track of the inventory in your
store. This may seem like a simple task, but there’s a lot of information that
goes into managing your inventory:
 How much of each item is in stock?
 What and when do you need to reorder?
 Are you ordering too much or too little inventory?
 What are your best and worst selling items?
 Should you stop selling something completely?
 Is your inventory storage sufficient?

17. Inventory management is either taken by hand or electronically. While some

may prefer to take inventory by hand, this can be a long and tedious process,
especially for stores with larger inventories or a lot of really small items in
their inventory. You also have to update your numbers daily to keep track of
sales and stock levels. All of this equals far more math than you may have
 asked for, as well as much more work. Most business owners don’t have that
kind of energy and time.

Some of the Inventory Control Models for a Retail Store like Big Bazaar are:

18. First-in, first-out (FIFO)

The FIFO stock control method is when a retailer fulfils an order with the item
that has been sitting on the shelf the longest. Basically, the products that were
acquired first will also be the first products that you sell.

Generally, FIFO leads to higher profits. The value of inventory at the point at
which it was acquired may be less than when it is sold. That’s because over
time, inventory-related expenses generally increase. Older inventory is
typically purchased at a lower price point. FIFO is one of the more
straightforward approaches to stock control, and it’s one of the easier ones to
understand and implement in your business. You don’t need to manipulate
any stock or income numbers, and as long as you’re purchasing what you
need, it should also accommodate the normal flow of products in and out of
your business.

Best for:

 Retailers who sell perishable products (food, drink, skincare,

cosmetics, etc.)
 Businesses that sell seasonal products, such as apparel, furniture
and home goods.

19. Last-in, first-out (LIFO)

LIFO inventory management is the opposite of FIFO: It is the inventory
management method that assumes the most recently acquired product is also
the first to be sold. This means that the most recent pricing is used to
determine the value of the stock that has been sold. This is an inventory
management technique that is commonly used in the U.S. Because of
possible discrepancies between the recorded and actual cost of goods sold
(COGS), it isn’t used in most other countries. It’s less straightforward and
requires more manipulation of the books. This is one reason why FIFO is
more commonly used in retail businesses.
Best for:

 Non-perishables and heavy raw materials, such as gas, metal or

chemicals.
 U.S.-based businesses.

20. Just-in-time (JIT)

 The JIT inventory management method takes more of an as-needed
approach to stock control. Inventory is ordered according to sales. The
benefits of this method include reducing risk, expenses and waste. On the
other hand, this can also adversely affect fulfilment times and product
availability. Toyota was the first global brand to introduce this inventory
management technique. They’ve used this nimble approach to manufacturing
and production to maximize profits and increase efficiencies.

Best for:

 Retailers who have mastered accurate forecasting.

 Larger retailers, as small businesses may end up paying
premiums and reducing profits for low stock levels.
 Retailers that want to reduce holding costs.

21. Economic order quantity (EOQ)

The EOQ inventory management method uses customer demand, ordering
cost, and holding cost to determine what the sweet spot is for inventory
levels. Also referred to as the optimum lot size, EOQ is calculated as follows:

A represents the total customer demand over the course of the year, Cp is
your ordering cost, and Ch is the carrying cost.

Let’s break down what each of these components means…

Customer demand depends on a variety of factors, both external

(seasonality, trends) and internal (marketing and promotions, pricing
strategies). Ordering costs are typically stable, however, they can decrease
as you order inventory in bulk.

And the holding cost, also known as carrying or storage expenses, also vary
depending on how much inventory you have. This includes expenses
associated with maintaining the space, interest on money borrowed to
purchase stock, or shrinkage. You may also have higher insurance rates if
 the value of your stock is greater. Therefore, the more product you have, the
higher those holding costs may be per product.

Best for:

 Retailers who have mastered accurate forecasting and want to

minimize inventory-related expenses.

22. Gross margin return on inventory investment (GMROI)

The GMROI method of inventory management divides sales by the average

inventory cost over a period of time and is multiplied by the gross margin
percent. This figure shows how much money you’re bringing in for every
ruppee spent.

Best for:
 Retailers that want to a high-level view at the health of their stock, as
well as an opportunity to look at the data broken down by department or
product line
 If you suspect you have stock issues and want to identify the source.

23. ABC analysis

The ABC analysis approach to inventory management helps you prioritize products.
Essentially, you’d categorize each product under one of the following:

 A (high-value products, low sales frequency): These products have a

greater financial impact on your business, but they’re more difficult to forecast
because they’re not in high demand. They will require the most attention in
your business.

 B (middle-value products, average sales frequency): Predictably, products

categorized as the letter B fall somewhere in the middle in terms of priorities.

 C (low-value products, high sales frequency): Because these products move

off the shelves more quickly and easily, they’re easier to predict. They also
generate sales that are less impactful to your bottom line, so they require the
least amount of attention and maintenance.

Best for:
 Retailers who want to understand which products are sitting on the
shelves for too long.

24. Fast, slow and non-moving (FSN) analysis

 The FSN inventory management system is another classification of what you
have in stock. Similar to the ABC analysis, you’ll go through your list of
products and identify them in one of three ways:

F (fast-moving stock): These products have sold the most and spent the
least amount of time on your shelves during a certain period of time. You may
be able to increase the price point for these products.

S (slow-moving stock): Products that have sold more slowly and spent
more time on the shelves during that same period of time. You may want to
reconsider the marketing and pricing strategies behind these products.

N (non-moving stock): Stock that hasn’t sold at all and is still sitting on the
shelves during that period of time. You may want to consider discontinuing
these items.
Best for:
Retailers that want to better understand the shelf life of their products.

25. Open-to-buy (OTB) inventory planning

OTB inventory planning, also known as merchandise management, helps you

understand how much stock you can purchase in the near future without
major risk. OTB accounts for inventory planning considerations such as sales
and promotions, normal customer demand, and current and planned stock
levels.

The formula to find out how much inventory you can afford to purchase is:

Planned sales + sales and markdowns + planned end-of-month

inventory – beginning-of-month inventory

OTB is typically calculated monthly, and retailers who use this method are
often more nimble. Because it requires less commitment and investment, you
can move product more quickly. And if your customers don’t like a product,
you don’t need to restock it. This also helps you stay on top of stock levels
more closely.

Best for:

 Retailers who sell seasonal products (apparel, cosmetics, home

goods, etc.) and frequently bring in products at the start of the
season and put them on sale at the end of the season
 Stores that want to keep inventory fresh, new and exciting for
customers.
Different Inventory Management Methods:

26. Physical Inventory Audit: This is probably the most boring and tedious method
when it comes to managing inventory, but it can be extremely helpful when
managing and making improvements to your budget. You don’t have to count your
inventory every single day; your POS should be doing that, but physically counting
inventory a couple of times a year helps keep everything in order.

27. Spot Checking: If you’re going to do physical inventory audits it’s also a good
idea to spot check every so often. That basically means you pick a few items in
your inventory to count and make sure the numbers you have now match up to
the numbers you’re supposed to have. If these numbers are off by a small margin,
you may have just miscounted and it’s back to counting. However, if there’s a large
gap between the two numbers you’ll need to figure out why that is.
28. Plan Ahead: Some items in your inventory may need extra special attention.
For example, those clothes in your inventory that follow the latest trends will probably
sell faster than something from last season. Pay attention to the market you’re a part
of and plan your inventory needs around that.

29. Retail Management Software: If you’re using a modern POS system, it has the
inventory tools that help you manage your inventory and other aspects of your retail
business. It certainly makes sense that your POS helps with your inventory
management since the sales processed through your POS directly affect inventory
levels and performance. Use your POS to your advantage by leveraging that
inventory information to make more informed business decisions.

30. POS Software: Modern POS software comes with real-time inventory
management capabilities that use sales data to consistently keep inventory numbers
and key metrics updated. Once a sale is completed, the inventory and sales data
sync to give you accurate information about what each sale means for your bottom
line and overall business operations. That sales data is also an important part of
ordering inventory. You need to know how well something is selling to determine the
quantity you should reorder. If something is selling really well or it’s an item you need
regularly, set up a reorder trigger so that when the stock level of your most popular
product drops below a certain amount, your POS sends the signal to order more.

Retail POS Software