Top 10 Operations Manager Skills To Have in 2024

Operations managers is an evergreen occupation requiring a mix of both hard and soft skills. In India, they can earn annual salaries ranging from ₹ 2.8 Lakhs to ₹ 19.0 Lakhs, ranging from 3 to 17 years. As per the data provided by AmbitionBox, the average annual salary is ₹10.4 Lakhs based on 71.5k latest salaries. To embark on a career as an Operations Manager in 2024, let us explore the top 10 essential skills that will give a strong kickstart to your journey as an operations manager.

An e-commerce company is facing serious issues with delayed deliveries. This causes a fall in customer satisfaction and sales. The problem was clear: the company’s logistics and supply chain were not up to the mark.

This is where the Operations Manager comes into the picture.

By carefully analyzing the existing system, the Operations Manager pinpointed the main areas causing the delays. A clear plan was put into place to fix these issues, focusing on improving the supply chain and working more efficiently with vendors. These changes helped the company with improved delivery times and a boost in customer satisfaction, proving the importance of a skilled Operations Manager in solving such critical problems.

Table of Contents

• What is an operations manager?
• What does an Operations Manager do?
• How to become Operations Manager: Skills Required
  • Project Management
  • Data Analysis
  • Supply Chain Management
  • Financial Management
  • Quality Assurance
  • Systems Management
  • Process and System Design
  • Logistics
  • Communication
  • Decision Making
• Career Scope as an Operations Manager
  • Career Progression as an Operations Manager

What is Operations Manager?

Rather than what… it’s appropriate to ask who exactly is an operations manager. An operations manager plays a key role in running a business smoothly and efficiently. They are responsible for overseeing the production of goods and services, inventory management, and coordinating with suppliers and customers. Operations managers also play a role in developing and implementing strategies for improving efficiency and reducing costs.

In short, an operations manager is responsible for the day-to-day operations of a business, from start to finish. They are the ones who make sure that the right products and services are produced, delivered, and sold to the right customers. Without operations management skills, businesses would not be able to function effectively.

Explore:

Free Operations manager courses	Operations courses
Operations manager courses	Operations courses
Operations management courses	Free quality management courses
Free operations management courses	Quality management courses

What does an Operations Manager do?

An operations manager is a professional who:

• Oversee the day-to-day operations of a business to ensure that goods and services are produced and delivered efficiently and effectively.
• Manage the production process, including scheduling, budgeting, and quality control.
• Manage inventory levels, including forecasting demand and ensuring that adequate supplies are on hand.
• Coordinate with suppliers and customers to ensure that goods and services are delivered on time and to specification.
• Develop and implement strategies to improve efficiency and reduce costs.
• Manage personnel, including hiring, training, and performance evaluation.
• Ensure that all safety and environmental regulations are met.

How to become Operations Manager: Skills Required

The following skills can boost the career of an operations manager:

1. Project Management

Project management is an essential skill that operations managers must have. They need to oversee projects, managing risks, budgets, timelines, and stakeholder communication to ensure on-time and on-budget completion. As an operation manager, one will need to:

• Identify and manage project risks associated with competition.
• Develop and implement competitive strategies.
• Track and analyze competitor performance. 

Scenario:

An Operations Manager at a healthcare facility is tasked with overseeing the setup of a new wing within the hospital. The project involves coordination with architects, construction crews, medical staff, and equipment suppliers. The timeline is strict, aiming to have the new wing operational within a year to accommodate the increasing number of patients.

Steps Involved:

As an operations manager, the following steps will be followed in this scenario:

• Goal Setting
  • Objective: Ensure the successful setup of a new wing within the hospital.
  • Expected Outcome: New wing operational within a year.
    
• Action – Coordination
  • Task: Coordinate with architects, construction crews, medical staff, and equipment suppliers.
  • Sources: Project plan, architectural designs, and equipment lists.
  • Method: Implement a structured and timeline-driven approach to manage and oversee all aspects of the project, ensuring each phase is completed on time and within scope.
  • Tools Utilized:
    • Microsoft Project: Used for project planning, scheduling, and progress tracking.
    • Trello: Utilized for task management, allowing team members to understand their responsibilities and deadlines.
    • Slack: Employed for seamless communication among all parties involved, ensuring everyone is updated and on the same page.
• Outcome
  • Insights: Effective coordination and timely decision-making are crucial.
  • Implementation: Adhering to the project plan and ensuring all parties are on the same page.

Explore:

PMP courses	Agile scrum certifications
Project management courses	Free project manager courses
Project management framework courses	Free Agile scrum certifications
Free PMP courses	Project manager courses

2. Data Analysis

Operations managers must know data analysis. These professionals collect and analyze data to enhance efficiency, reduce costs, and optimize resource allocation within their operations. Operations managers analyze data to:

• Collect and analyze data on competitor pricing, products, and services.
• Use data to assess your own strengths and weaknesses relative to your competitors.
• Use data to identify opportunities to reduce costs, improve efficiency, and deliver better value to customers. 

Scenario: 

An Operations Manager at a technology company observes a sudden drop in the production output of their manufacturing unit. They are required to analyze various datasets including employee performance records, machinery logs, and production schedules to identify potential causes for the decline in production.

Steps Involved:

As an operations manager, the following steps will be followed in this scenario:

Goal Setting:

• Objective: Identify the cause for the decline in production output.
• Expected Outcome: Restoration of optimal production levels.

Action – Data Analysis:

• Task: Analyze various datasets including employee performance records, machinery logs, and production schedules.
• Sources: Employee records, machinery logs, production schedules.
• Method: Apply statistical analysis and machine learning techniques to analyze data, identify patterns, and uncover potential issues affecting production.

Tools Utilized:

• Excel: Utilized for efficient data organization, analysis, and data visualization.
• Tableau: Employed for advanced and interactive data visualization.
• Power BI: Used for interactive reporting and comprehensive business analytics.

Outcome:

• Insights: Identification of specific issues affecting production.
• Implementation: Address identified issues to restore optimal production levels.

Also, explore:

Free Power BI courses	Free Tableau courses
Free data analysis courses	Free MS Excel courses
Power BI courses	Free Tableau courses
Data analysis courses	MS Excel courses

3. Supply Chain Management

Operations managers must have knowledge of supply chain management. They should be efficient enough to handle suppliers, contracts, and inventory to meet customer demand and mitigate supply chain risks. Supply chain management skillset helps an operation manager to:

• Identify and assess the risks to your supply chain posed by competitors.
• Develop and implement strategies to mitigate supply chain risks.
• Benchmark your supply chain performance against that of your competitors. 

Scenario:

An Operations Manager in a multinational clothing retail chain is faced with consistent delays in the supply of certain clothing items, leading to stockouts and lost sales. They need to scrutinize the entire supply chain, from raw material procurement to in-store stocking, to pinpoint and address the sources of these delays.

Steps Involved:

As an operations manager, the following steps will be followed in this scenario:

Goal Setting:

• Objective: Address consistent delays in the supply of certain clothing items.
• Expected Outcome: Efficient and timely supply chain operations.

Action – Scrutinize Supply Chain:

• Task: Examine the entire supply chain from raw material procurement to in-store stocking.
• Sources: Supply chain records, vendor information, inventory data.
• Method: Conduct a comprehensive and detailed audit of the entire supply chain to identify bottlenecks, inefficiencies, and areas for improvement.

Tools Utilized:

• SAP Integrated Business Planning: Used for real-time and integrated supply chain planning.
• Oracle SCM Cloud: Employed for end-to-end supply chain management and monitoring.
• Kinaxis RapidResponse: Utilized for concurrent supply chain planning and response to issues.

Outcome:

• Insights: Identification of bottlenecks and delays in the supply chain.
• Implementation: Implement strategies to optimize the supply chain.

Explore:

Supply chain management courses	SAP courses
Logistics management courses	Quality management courses
Free Supply chain management courses	Free SAP courses
Free logistics management courses	Quality management courses

4. Financial Management

Operations managers must learn the functions of financial management to manage budgets, track costs, and make informed financial decisions to support operational goals. Once operations managers learn financial management, they learn to:

• Track and analyze competitor financial performance.
• Use financial data to assess your own competitive position.
• Use financial data to develop and implement competitive strategies. 

Scenario: 

An Operations Manager at a startup is handed the responsibility to manage the operations within a limited budget. They have to allocate funds to various departments, manage expenses, and ensure that the operations do not exceed the financial constraints set by the company.

Steps Involved:

As an operations manager, the following steps will be followed in this scenario:

Goal Setting:

• Objective: Manage operations within a limited budget.
• Expected Outcome: Efficient operations without exceeding financial constraints.

Action – Budget Management:

• Task: Allocate funds to various departments and manage expenses.
• Sources: Company’s financial statements and departmental budget requests.
• Method: Implement a detailed and structured financial planning and monitoring approach to ensure optimal allocation and utilization of funds.

Tools Utilized:

• QuickBooks: Used for budgeting, expense tracking, and financial reporting.
• Microsoft Excel: Employed for creating detailed financial models and forecasts.
• SAP Financial Management: Utilized for comprehensive financial management and analysis.

Outcome:

• Insights: Proper financial management is crucial for sustainable operations.
• Implementation: Continuous monitoring and adjustment of financial plans and allocations.

Explore:

Capital budgeting courses	Logistics and supply chain courses
Logistics management courses	Quality management courses

5. Quality Assurance

Operations managers must ensure that products and services meet or exceed quality standards and address quality-related risks. Through quality assurance, operations managers:

• Benchmark your quality standards against those of your competitors.
• Implement continuous improvement initiatives to ensure that your products and services meet or exceed customer expectations.
• Monitor competitor quality performance and identify any areas where they are improving.

Scenario:

An Operations Manager at an automobile manufacturing company is confronted with a scenario where the latest batch of cars has shown a higher than average rate of component failures in quality testing. They have to delve into the quality assurance processes to understand the issue.

Learn what is quality management

Steps Involved:

As an operations manager, the following steps will be followed in this scenario:

Goal Setting:

• Objective: Address the higher than average rate of component failures in quality testing.
• Expected Outcome: Improved quality assurance processes and reduced component failures.

Action – Quality Assurance Review:

• Task: Delve into the quality assurance processes to understand the issue.
• Sources: Quality testing results, component failure reports.
• Method: Conduct a thorough review of quality assurance processes and standards to identify and address gaps.

Tools Utilized:

• Jira: Used for tracking and managing quality assurance tasks and issues.
• QTest: Employed for test case management and tracking.
• Selenium: Utilized for automated testing and quality assurance.

Outcome:

• Insights: Identification of gaps in the quality assurance process.
• Implementation: Enhancement and strengthening of quality assurance processes.

Explore:

Supply chain management courses	Jira certifications
Logistics management courses	Quality management courses

6. Systems Management:

Operations managers must oversee IT, production, and logistics systems, identifying and mitigating system-related risks. Systems management allows operations managers to:

• Identify and assess the risks to your systems posed by competitors.
• Develop and implement strategies to mitigate system risks.
• Benchmark your system performance against that of your competitors.

Scenario: 

An Operations Manager at a large e-commerce company is overseeing various IT systems that handle orders, inventory, and customer communication. The company is facing issues with order processing delays and inventory mismatches, highlighting a need for improved systems management.

Steps Involved:

As an operations manager, the following steps will be followed in this scenario:

Goal Setting:

• Objective: Improve systems management to address order processing delays and inventory mismatches.
• Expected Outcome: Efficient and seamless systems management.

Action – Systems Audit:

• Task: Conduct a comprehensive audit of all IT systems in use.
• Sources: System logs, user feedback, and inventory data.
• Method: Implement a systematic approach to evaluate, analyze, and improve the integration and functioning of various IT systems.

Tools Utilized:

• SolarWinds: Used for IT infrastructure management and monitoring.
• Nagios: Employed for comprehensive IT infrastructure monitoring.
• Microsoft System Center: Utilized for managing and configuring servers and desktops.

Outcome:

• Insights: Identification of issues and bottlenecks in systems management.
• Implementation: Streamlining and integration of IT systems for improved efficiency.

Explore:

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7. Process and System Design:

Operations managers must design efficient processes, eliminate waste, and optimize systems for improved operations. With these skills, operations managers can:

• Design and implement processes and systems that are efficient, effective, and competitive.
• Benchmark your processes and systems against those of your competitors.
• Use data and analytics to identify opportunities to improve your processes and systems.

Scenario

Customers are consistently abandoning their carts on the company’s e-commerce platform. The cumbersome and lengthy checkout process is deterring customers from completing their purchases. The Operations Manager must gauge the specific stages in the checkout process that are causing frustration and abandonment, and understand the customer’s expectations and needs for a smooth and quick checkout experience.

Steps Involved:

As an operations manager, the following steps will be followed in this scenario:

Goal Setting:

• Objective: Identify and understand the issues in the checkout process that lead to cart abandonment.
• Expected Outcome: Reduction in cart abandonment and enhanced customer satisfaction. 

Action- Detailed Data Analysis:

• Task: Conduct a detailed analysis of the checkout process.
• Sources: Customer feedback, cart abandonment data, website analytics.
• Method: Analyze the data to identify the stages in the checkout process where customers are facing difficulties or choosing to abandon their carts.

Tools Utilized: 

• Google Analytics: Analyze customer behavior and pinpoint cart abandonment stages.
• Typeform: Collect customer insights on checkout experience and issues.
• Barilliance: Examine specific cart abandonment data to identify checkout problems. 

Outcome:

• Insights: Identification of the specific issues and stages in the checkout process causing customer frustration and cart abandonment.
• Implementation: Use the insights to make the necessary adjustments to the checkout process, ensuring it meets customer expectations for a smooth and quick experience.

Explore:

Free Google Analytics courses	Logistics and supply chain courses
Logistics management courses	Quality management courses
Google Analytics courses	Free logistics management courses and certifications

8. Logistics:

Operations managers must design and implement an efficient and effective logistics network, optimizing transportation routes and inventory levels. Logistics help operations managers to:

• Design and implement a logistics network that is efficient and effective.
• Benchmark your logistics performance against that of your competitors.
• Use data and analytics to identify opportunities to improve your logistics network. 

Scenario:

An Operations Manager at a large e-commerce platform is confronted with a significant challenge in the logistics department. The company has recently expanded its product range, leading to an influx of orders from new and diverse locations. The existing logistics partners are unable to meet the increased demand efficiently, leading to delayed deliveries and a surge in customer complaints. The Operations Manager is tasked with navigating this intricate situation to ensure timely and cost-effective delivery solutions for the growing and diverse customer base.

Steps Involved:

As an operations manager, the following steps will be followed in this scenario:

Goal Setting

• Objective: Navigate the logistics challenges due to the expansion of product range.
• Expected Outcome: Timely and cost-effective delivery solutions for a diverse customer base.

Action – Logistics Management

• Task: Address the issues with existing logistics partners and explore new solutions.
• Sources: Order data, customer feedback, and logistics partner reports.
• Method: Evaluate and restructure the logistics strategy to accommodate increased and diverse demand.

Tools Utilized:

• SAP Integrated Business Planning: Used for logistics planning and management.
• Tableau: Employed for visualizing logistics data and insights.
• FedEx Logistics: Utilized for managing and optimizing shipping and delivery.

Outcome

• Insights: Need for a flexible and scalable logistics strategy.
• Implementation: Partnering with reliable and efficient logistics providers to ensure timely deliveries. 

Explore:

Supply chain management courses	Logistics and supply chain courses
Logistics management courses	Quality management courses

9. Communication:

Operations managers must communicate effectively with a variety of stakeholders, conveying vision, goals, and resolving issues. With effective communication skills, an operations manager can:

• Talk effectively with stakeholders, including customers, suppliers, and employees.
• Develop and implement a communication strategy that aligns with your overall business goals.
• Use communication to promote your brand and differentiate yourself from your competitors.

Scenario:

An Operations Manager in a software development company is coordinating a large team spread across different geographical locations. The team is working on multiple projects simultaneously, and clear, timely communication is crucial for synchronizing work and meeting deadlines.

Steps Involved:

As an operations manager, the following steps will be followed in this scenario:

Goal Setting

• Objective: Ensure clear and timely communication for a large team spread across different locations.
• Expected Outcome: Synchronized work and met deadlines across all projects.

Action – Communication Enhancement

• Task: Improve communication channels and methods within the team.
• Sources: Team feedback, project schedules, and communication logs.
• Method: Implement advanced communication tools and regular communication schedules.

Tools Utilized:

• Microsoft Teams: Used for team communication, meetings, and document sharing.
• Asana: Employed for task management and communication.
• Zoom: Utilized for virtual meetings and discussions.

Outcome

• Insights: Effective communication is crucial for team coordination and project success.
• Implementation: Regular updates, meetings, and feedback sessions to ensure everyone is on the same page.

Explore:

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10. Decision Making:

Operations managers must make timely and effective decisions, often under pressure, based on sound data and analysis. Decision making skills help operations managers to:

• Make timely and effective decisions based on sound data and analysis.
• Take risks and make bold decisions to stay ahead of the competition.
• Think strategically and develop long-term plans. 

Scenario:

An Operations Manager at a financial services firm is facing a situation where the company must decide between upgrading their existing IT infrastructure or moving their operations to a cloud-based system. The decision holds significant implications for the company’s operations, cost, and security.

Steps Involved:

As an operations manager, the following steps will be followed in this scenario:

Goal Setting:

• Objective: Make an informed decision between upgrading IT infrastructure or moving to a cloud-based system.
• Expected Outcome: A decision that enhances the company’s operations, cost-efficiency, and security.
  

Action – Decision Making Process:

• Task: Evaluate the pros and cons of upgrading the existing IT infrastructure versus moving to a cloud-based system.
• Sources: IT department feedback, cost analysis reports, and security assessments.
• Method: Conduct a comprehensive analysis and consultation to make an informed decision.

Tools Utilized:

• SWOT Analysis: Used for analyzing strengths, weaknesses, opportunities, and threats of each option.
• Cost-Benefit Analysis Tools: Employed for financial evaluation of each option.
• Consultation Meetings: Utilized for gathering insights and opinions from experts and stakeholders.

Outcome:

• Insights: Importance of considering long-term benefits, costs, and security in decision making.
• Implementation: Execute the chosen option with a detailed plan and continuous monitoring.

Explore:

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Career Scope as an Operations Manager

According to the Bureau of Labor Statistics (BLS), the employment of operations managers will grow by 6% from 2020 to 2030, which is faster than the average for all occupations. In India, the operations management sector is expected to grow significantly in the coming years, driven by the growth of the manufacturing, retail, and e-commerce sectors. 

As per National Association of Manufacturers (NAM), the manufacturing sector in India is expected to increase at a CAGR of 10% in the next five years. This growth is expected to create a significant demand for operations managers with the right skills and experience.

Globally, the demand for operations managers is also expected to grow in the coming years. This is due to a number of factors, including the increasing globalization of businesses, the growing complexity of the supply chains, and the increasing importance of efficiency and productivity.

The salary of an operations manager can vary based on several factors, such as the industry they work in, their experience level, and their location. However, operations managers are typically well-compensated. The salary of an Operations Manager in India ranges from ₹2.8 lakhs to ₹19.0 lakhs per year, with an average annual salary of ₹10.4 lakhs.

Career Progression as an Operations Manager

After gaining experience and developing new skills, operations managers can advance to a variety of senior management roles, including:

Job Profile	Operations Manager’s Experience	Key Responsibilities
Operations Analyst	2-4 years	Collect and analyze data to optimize operations.
Logistics Manager	3-5 years	Manage transportation and materials storage.
Production Manager	3-6 years	Supervise the entire production process.
Quality Assurance Manager	4-7 years	Ensure product and service quality meets standards.
Supply Chain Manager	5-8 years	Oversee end-to-end supply chain: sourcing to delivery.
Manufacturing Manager	5-9 years	Oversee manufacturing processes and personnel.
Operations Consultant	5-10 years	Provide operational improvement guidance to businesses.
Operations Strategist	7+ years	Develop and implement long-term operational plans.