Nigerian Institute of Production Management (NIPM), the organisation regulating professional standards of Production and Operations Management (POM) practice in Nigeria recognises anyone whose occupation involves managing or overseeing manufacturing/plant or factory operations as a practitioner of Production And Operations Management (POM) in Nigeria.
The Institute classifies all jobs involving the acquisition and transformation of resources into products and/or services for onward delivery to the customers or consumers for the creation of optimum stakeholders value as Production and Operations.
The phrasing or the grammatical expression ” Supply Chain Operations Management” or “Supply Chain Operations” further elucidates or exemplifies the nexus between Supply Chain and Operations. Supply Chain Directors/Managers practice Operations Management. All supply chain processes and systems are driven by operations.
Supply Chain Management is the management of interconnected operations aimed at getting the products into the hands of the customers/consumers. All organisations engage in operations at all levels- strategic, tactical and operational.
Supply Chain Management is part of Operations Management that integrates supply and demand for competitive advantage, maximum customer value and optimum bottomline performance.
*In many organisations Supply Chain Directors are responsible for manufacturing operations. Organisations are increasingly using the Supply Chain concept as a business strategy as it facilitates the streamlining of operations for cost-effectiveness and promotes operational efficiency.
CEOs have responsibility and accountability for the overall effectiveness of the business operations of an organisation.
A Supply Chain Director has a key role in Operations as well. It does not matter if the Operations Director is not on the Board of Directors of a company but Supply Chain Director is there. It simply emphasizes the penchant to use a new name with a specific focus on integrated and aligned operations from the end- to- end.
Flattening structures and integrating business functions for greater efficiency, faster decision making, and swifter response to change is the global “new normal”.This means right from the sources of raw materials or the suppliers through to the distribution network or the customer’s someone has accountability for results.
But this top executive needs to continually build competencies in POM because that is the backbone, the livewire and the spirit of the Supply Chain. Operations are involved across the supply chains both globally, regionally and locally. Operations drive supply chains. Without operations supply chain is broken or full of weak links.
That someone’s job title is Finance or Financial Director doesn’t change the fact that s(he) is an accountant. Titles are job names which are better described by job roles, duties, responsibilities and accountabilities and if you like the KPAs and KPIs.A Supply Chain title is meant for a role in Operations Management or Production and Operations Management.
*If a Supply Chain Director is responsible for manufacturing operations or a Supply Chain Manager oversees production what it means is that they are practicing Production and Operations Management. The law says such persons should be NIPM registered. If you are involved in Supply Chain Management answer this question: are you NIPM registered? If not, do so soonest and take Operations Management Development (OMD) programmes earnestly. This is vital to your career success!
Effective and efficient corporate governance standards aimed at delivering high performance, excellent bottom-line results, and stakeholders value on the short, medium and long term need to be Production and Operations Management- driven.
Dr Olaniyi Opanuga, FNIPM, COPOM(c), FCIAM. is the President of Nigerian Institute of Production Management ( NIPM) and the Chairman, Supply Chain And Operations Management Council.
