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What is operations management? Functions and career paths

February 12, 2026 

By: The Capella Editorial Team with Bradly Roh, PhD, DBA and Interim Dean and Vice President for the School of Business, Technology and Health Care Administration

Reading Time: 8 minutes

Companies often “leak” money through outdated processes and fragmented systems.

If these issues go unchecked, projects stall. Resources are wasted. Costs rise.

Every business feels the impact, but few know how to fix it. People working in operations management are often the ones who spot inefficiencies and drive improvements. As an operations professional, you may help identify new opportunities for business growth, which makes it a rewarding field with strong progression potential.

But whether you’re launching your career or considering a change, you may have a few questions: What can you expect in operations management? What are the educational requirements for these types of roles? And how do you upskill on top of your busy schedule?

Find out all you need to know about operations management, what it is and its core functions. You’ll also get a better picture of the future outlook for this field and what it takes to break in.

What is operations management?

Operations management is the practice of optimizing business processes to improve efficiency. Operations managers plan, organize and coordinate these efforts. The goal is to keep everything running like a well-oiled machine while minimizing costs.

What is the focus of operations management?

The core focus of operations management is to identify and address issues that could reduce operational efficiency. A great example is unplanned downtime, which costs the world’s 500 biggest companies 11% of their annual revenue. An operations manager could take proactive actions to prevent such disruptions through predictive maintenance and contingency planning.

Another focus is on implementing systems to improve product design and reduce the time it takes to make a product and deliver it to a customer. A prime example is the Toyota Production System, a lean manufacturing philosophy that emphasizes continuous improvement.

In this system, workers can pull a cord on an assembly line to stop production if they detect an issue. The team then works together to address the problem before resuming production. While stopping an assembly may seem counterintuitive to productivity, it keeps issues from moving downstream and reduces costly rework later on.

If helping companies improve their operations resonates with you, the next step is to learn about its core functions. This will give you a better idea of what you can expect should you pursue a career in operations.

What are the core functions of operations management?

Operations management translates business goals into practical actions that keep day-to-day activities running smoothly while supporting long-term growth. Each function plays a key role in ensuring efficiency, consistency and value across the organization.

Here’s a quick look at each of these functions:

  • Organizational planning: Involves setting operational goals (e.g., reduce production downtime by 10%) and developing strategies to achieve them.
  • Quality control: Ensures that finished products meet customer requirements and established standards for regulatory compliance.
  • Supply chain management: Involves overseeing procurement and logistics to optimize the flow of goods.
  • Inventory management: Focuses on ordering and stocking the right amount of goods to meet customer demand and avoid tying up capital in unsold products.
  • Budgeting: Involves creating financial plans, managing cash flows and allocating resources to maximize efficiency while reducing costs.
  • Forecasting: Uses historical data and market insights to predict future demand and make decisions about capacity planning and resource allocation.
  • Delivery: Encompasses the logistics of getting finished products to customers at the right place at the right time using transportation networks.

If you’re organized and detail-oriented and you enjoy solving complex problems, this field could be a good fit for you. Common responsibilities for an operations manager include:

  • Overseeing processes to improve efficiency
  • Allocating resources to meet production goals
  • Establishing and maintaining quality control standards
  • Tracking key performance indicators (KPIs) for continuous improvement
  • Controlling operations costs

But before you invest time and resources in developing the skills needed for a career in operations, let’s look at the career outlook and opportunities once you’ve met the educational requirements.

Operations management outlook and potential roles

Hidden inefficiencies exist in practically every company, but what are the root causes?

Complex organizational structures cause inefficiency, along with unclear roles, redundant activities, unclear processes and slow approvals.

That’s where operations professionals come in to help companies run smarter and leaner. (Source)

Companies need industry professionals with the right skills to identify and implement process improvements. These roles offer growth potential, leadership opportunities and the chance to make a measurable impact across an organization.

Operations professionals are needed in nearly every sector, including manufacturing, healthcare, retail, hospitality, financial services, logistics, construction, food and beverage, education and government.

Potential fields for operations management include production, logistics and administration and facilities.

Industrial production managers

Industrial production managers oversee manufacturing operations to meet production goals. They coordinate across departments to keep schedules and budgets on track.

For example, they may work with procurement to ensure raw materials arrive on time or with suppliers to maintain consistent quality standards.

These roles require a balance of technical knowledge, leadership and strategic decision-making.

Logistics

Logisticians play a vital role in coordinating an organization’s supply chain. Their work ensures that goods move efficiently from suppliers to customers. They often use data and software tools to model different scenarios, identify bottlenecks and streamline performance. Demand for logistics professionals may grow as companies expand supply networks and rely on data-driven operations.

Administration and facilities

Administrative services and facilities managers maintain workplace environments so they support safety, efficiency and employee productivity. Their work includes overseeing building maintenance, managing contracts and ensuring compliance with regulations.

These roles are essential in organizations that prioritize sustainability, safety and effective use of space.

With so many potential future career options, pursuing a career in operations could be a smart decision. However, it helps to know what it takes to break into this field.

Educational requirements and career pathways for operations management

Breaking into operations requires the right educational foundation. Understanding these requirements can help you chart your career path and plan your next step. Here’s how your education may progress as you move through different stages of your operations career. Keep in mind these are examples intended to serve as a general guide. Some positions may prefer or even require previous experience, licensure, certifications, and/or other designations along with a degree. Because many factors determine what position an individual may attain, Capella can’t guarantee that a graduate will secure any specific job title, a promotion, salary increase, or other career outcome. We encourage you to research requirements for your job target and career goals.

Entry-level positions

A typical operations career may start in roles such as assistant store manager, office manager or account manager (in operations-focused industries). These positions often require a bachelor’s degree in a business-related field.

A good place to start is the Bachelor of Science in Business, where you’ll learn how to:

  • Design and implement organizational structures that support efficient operations
  • Implement business strategies that align with operational goals
  • Allocate resources to maximize productivity and minimize waste

If you’re a working professional and want to pivot into this field, it’s not too late. The flexibility of online degrees means you can pursue additional education and advance your career goals without putting your life on hold or sacrificing other commitments.

Mid-level management positions

Mid-level management is where you move from operational to strategic responsibility. Common roles include store manager (or retail store manager) and sales manager. These positions may require a bachelor’s degree plus several years of experience in operations, sales or management, depending on the organization.

While not required, earning an MBA can enhance your prospects for mid-level management roles by equipping you with core business fundamentals and management skills.

Professional certifications, such as Certified in Planning and Inventory Management (CPIM), Certified Supply Chain Professional (CSCP) and Project Management Professional (PMP), are also great ways to gain specialized technical expertise and make yourself more valuable to employers.

Senior leadership positions

Senior leadership roles are more strategic in nature, so they require extensive experience and a proven track record. At this level, you’ll oversee and implement operational strategy on a larger scale.

These positions typically require a bachelor’s degree and a master’s degree. Some organizations may prefer a doctoral degree in a related field or require advanced certifications like Six Sigma Black Belt and Certified in Logistics, Transportation and Distribution (CLTD) to demonstrate your competencies in working at the executive level.

Prepare for a career in operations management

Operations management is a field with demand for professionals who can optimize the flow of goods. Whether you’re starting fresh or pivoting from another industry, the right education will help you break into this field.

However, finding the time to develop your skills while balancing other commitments can be challenging.

Don’t let time constraints keep you from achieving your professional goals. With flexible learning formats like FlexPath, you can take courses at your own pace and set deadlines around your busy schedule.

Capella University offers several online business programs designed to prepare you for roles in operations management and related fields. Options include:

Each program helps you develop practical, career-ready skills in planning, process improvement and organizational efficiency.

Explore online business degrees from Capella University to build the foundational knowledge you need to break into operations management.

FAQs

What are the 7 main functions of operations management?

The seven main functions of operations management are production planning, capacity planning, quality control, supply chain management, inventory management, finance and forecasting. These must work in tandem to keep organizations and businesses running smoothly.

What is an MBA in operations management?

An MBA in operations management is a master’s degree designed to help professionals develop the strategic thinking and leadership skills they need to manage complex systems and drive operational efficiency.

What are the 5 Ps of operations management?

The five Ps of operations management come from a framework used to describe the key elements that drive an organization’s production and delivery systems. It’s often referenced in business and management education to help simplify how different parts of operations work together to create value.

The five Ps are Product (what you deliver), Process (how you create it), Plant (where production occurs), People (who execute the work) and Programs (what systems guide production).

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