Product Management Role in Operations Management
Product management is a key revenue driver for an company. A product based company earns its living by selling the product to its clients.
A product, purely from the customer’s perspective, is judged by its ability to solve the problems of the customer. Thus, when one talks about product management, it is essentially about managing its perception in the market, product quality, promotion, and pricing. Product management is one of the key elements in operations management, and without product management, the role of operations management in profitability would go down in product driven industry.
What are the principles of product management?
Quality management: An enterprise with an uncompromising focus on quality will earn the faith of customers. However, the products must be designed based on what the requirements of the customer are. The product must be designed so that it can solve the problems of the customer.
The operations manager must be constantly in touch with the quality assurance departments and must know what customers think of the product. A product must also undergo continuous improvements based on customer feedback and also face continuous assessments on whether it is fulfilling the requirements of customers.
Resource management: A product is the consequence of multiple resources coming together. The resources could be human resources, machinery, and the raw materials used to make the product. The operations manager needs to constantly manage all resources so that the finished product is quality.
For example, the operations manager needs to obtain the specific requirements for raw materials from the various departments . The operations manager needs to ensure that the supply chain of goods and services is managed well and needs to constantly interact with the suppliers.
Delivery management: An operations manager also needs to ensure that the product is delivered to the client on time. Delivery management is all about managing the risks that could hinder on-time delivery.
The first step is to identify the risks to the smooth delivery of the product. The second step is to coordinate with the concerned departments and arrange suitable risk mitigation measures. The operations manager also needs to ensure that the necessary resources for carrying out the risk mitigation measures are in place.
The manager needs to constantly monitor the entire delivery process so that the delivery goes smoothly. Post delivery, the manager needs to get in touch with the client and check whether the product was delivered satisfactorily, follow up is essential in product management. The manager will also make notes if the client reports any problems to ensure that similar problems do not occur in the future.
The operations manager has his/her plate full as far as product management is concerned. The purview of product management has significantly increased in the post globalization era. With enterprises doing everything they can to stay competitive, the role of the operations manager has widened to include product management.