Operations is one of the most important functions in organizations besides the traditional business functions such as finance, marketing, and human resources.
With the boom of e-commerce and advancements in manufacturing and production technology and processes, businesses require a new and improved form of operations management. This has led to the creation of several MBA programs focusing specifically on operations. In this article, we take a look at the top 10 best business schools for an MBA in operations management.
This article will cover the following aspects related to MBA in Operations:
- Scope of MBA in Operations
- Salary and Employment statistics in Operations management
- Job profile after MBA in Operations
- Best business schools for operations management
- MIT Sloan School of Management
- Carnegie Mellon Tepper School of Business
- Purdue University’s Krannert School of Management
- Stanford Graduate School of Business
- Michigan Ross School of Business
Scope of MBA in Operations
An operations management personnel is responsible for overseeing the company’s operations by ensuring they’re efficient and effective. They are the backbone of the company’s day-to-day operations and help in delivering quality products/services at the right cost and on schedule.
If we must describe it in one sentence, then operation management is all about executing corporate strategy on the ground.
Operations management graduates are primarily concerned with planning, organizing, and supervising in the context of production, manufacturing, or providing services. It is a delivery focussed discipline that requires analytical as well as organizational skills.
Salary and Employment statistics in Operations Management
According to the 2019 GMAC Corporate Recruiters Survey, 26% of employers surveyed plan to hire management graduates for operations roles in 2019. Organizations in the energy/utility industry and manufacturing industries plan to place 38% and 47% new hires into operations roles.
Other major industries hiring management graduates for operations roles include non-profit/government (26%), product and services (29%), and healthcare (30%).
According to the U.S. Bureau of Labour and Statistics, the mean annual wage for an operations manager for last year was $123,880. The 75th percentile pay figure is 157,120.
Job Profile after MBA in Operations
It’s a common misconception that MBA in Operations management leads to working in the only manufacturing industry, which is not valid. An MBA in operations is suitable for roles in diverse sectors such as wholesale trade, e-commerce companies, pharmaceuticals, and many more. Common job titles offered to MBA graduates in operations include:
- Purchasing manager
- Inventory coordinator
- Warehouse operations manager
- Logistics/supply chain manager
- Operations consultant
- Sales or marketing operational manager
- And many more
Now that we know the scope, salary and employment statistics, and job profile after completing an MBA in operations, let us take a look at the best business schools for operations management.
Best Business Schools for Operations Management
Listed below are ten best business schools for operations management according to the US News report:
- MIT Sloan
- Carnegie Mellon University (Tepper Business School)
- Purdue University – West Lafayette (Krannert School of Management)
- Stanford University
- The University of Michigan – Ann Arbor (Ross School of Business)
- University of Pennsylvania (Wharton School of Business)
- Georgia Institute of Technology (Scheller College of Business)
- Northwestern University (Kellogg School of Management)
- Columbia University
- Ohio State University (Fisher College of Business)
US News Report Ranking Methodology
Us News report collects the data from all the MBA accredited programs regarding their full-time MBA, based upon three weighted average indicators:
- Quality Assessment
- Placement Success
- Student Selectivity
They consider the quality of education based on peer and recruiter feedback as well as statistics related to the academic caliber and employment of the cohort.
Following are the employment and salary statistics for the best business schools in Operations:
|Best Business Schools for Operation Management||Class Size||Operation Function Hires |
|Mean Salary |
|Median Salary |
|Median Bonus |
|MIT Sloan||409||12.9%||$133,919||$130,000||$35,000||$42,824||$95,000 to |
|Tepper business school |
|236||8.70%||$122,333||$130,000||N/A||N/A||$85,000 to |
|Stanford University||417||3%||$132,143||$130,000||$15,000||$19,000||$90,000 |
|Ross School of Business||400||2.4%||$136,973||$135,000||$25,000||N/A||$100,780 |
|Scheller School of business||165||13%||N/A||N/A||N/A||N/A||N/A|
|Kellogg School of management||476||2%||$118,000||$125,000||N/A||N/A||$68,000 to |
|Columbia University||727||2.50%||N/A||N/A||N/A||N/A||$72,000 to |
|Fisher College of business||77||15%||$96,500||N/A||N/A||N/A||N/A|
Around 12.9% of the class chose careers in operation/project management function with a mean salary of $133,919. The salary range for students selecting jobs in operations is $95,000 to $175,000.
Operations Faculty at MIT Sloan
They have an excellent pool of operation management faculty that are globally recognized. Zeynep Ton, Associate Professor for Operations Management, was named among one of the 20 winners of 2018’s “Ideas Worth Teaching” award by Aspen Institute, for her course “Management of services: Concepts, Design, and delivery.
Another faculty that made the news is Greg Distelhorst, professor of global economics and management, created a how-to list on looking out for supply chain blind spots.
The core curriculum at MIT Sloan is into Operations research/statistics, which includes optimization methods with a focus on modeling, analysis and solution techniques, data mining techniques, system optimization and analysis for operations, consulting issues in operations, different models related to optimization with a seminar in operations research.
MIT Sloan also offers a dual degree program known as leaders for global operations that provides students with either an MBA or a Master of Science in management plus a Master of Science from one of six participating departments in the school of engineering.
MIT Sloan provides a flexible learning program where, after your first- semester core, you have three semesters to create a program that’s right for you. It also provides Enterprise management where the program helps students to develop a holistic approach to solving the most crucial challenges of today’s business world. The EM Track allows students to participate in projects from real companies and train students for careers in a large organization, which includes the operational area of management.
The MIT Sloan operations club is for students interested in operations management and offers industrial visits, guest lectures, and competitions to its members. The Online Operations Simulation Competition (OpsSimCom) is a three days event which provides the students to compete with the top business school students around the world to see who can run the most profitable factory.
Recent MIT Sloan graduates interested in manufacturing have pursued a career in Boeing, Honeywell International, Nissan Motor Company, and Cargill Inc. Students that were interested in operational consulting are in firms such as McKinsey & Company and Booz & company.
Carnegie Mellon University (Tepper School of Business)
Around 8.70% of the class chose careers in the operations function. The mean salary is $122,333, with a salary range of $85,000 to $135,000.
Tepper School of Business focuses on two frontiers, i.e., Building analytical and leadership skills. Both are essential from an operational view. To solve an operational challenge, you should be able to forecast and provide solutions for which developing your analytical skills set is necessary.
A wide variety of electives available for an MBA in operations, students explore topics such as supply chain management, operations strategy, risk analysis, demand management, healthcare, six sigma tools and techniques, and many more.
Apart from this, they also have capstone projects and operations research concentration.
MBA Operations Research Concentration
During the 1950s, researchers at the university pioneered a new approach to business management called management science. It focuses on practicing the application of quantitative decision-making techniques and analytics by using management models, which are now followed by leading B-Schools.
This concentration provides a powerful career advantage in which students learn the framework for assessing dynamic and complex variables from the strategic decision perspective. It focuses on Optimization models by using various tools, that help to see through the problem and optimize and improve the business situations.
MBA Operations case competition
Tepper School of Business organizes the nation’s capstone MBA Operations case competition where 20 of the most elite business schools from around the world participate in the same.
The major recruiting partners of the Tepper school of business are Amazon.com, Apple Inc., Bank of America, Intel Corporation, Johnson & Johnsen, Target corporation, and many more.
Purdue University – West Lafayette (Krannert)
Around 34% of the class got placed into operations function with a mean salary of $90,429.
Krannert Research Centres
Krannert School of Management has research centers that focus on Operations Management. They have affiliation with The Global supply chain management initiative that incorporates cross-disciplinary research from manufacturing, IT, Marketing, sales, product design, and finance. It studies various subject titles such as channel partners, supply and demand management, sourcing and procurement, and logistics management. The program provides financial and intellectual resources to support operation and supply chain management.
Krannert Operations Club
The primary aim of the operations club is to help students gain industry exposure to broaden the understanding of operations beyond the traditional classroom setting. Various events are held, such as plant tours, workshops, case competitions, and operational guest speakers from industries to provide insight into real-world opportunities.
INFORMS Student chapter
INFORMS student chapter is a society at Krannert school of management that represents professionals in operations research and management science. The Purdue Chapter aims to provide a community at Purdue for students interested in operations management and promote discussions about relevant topics in operation management and management science. The society also helps in providing career development and education opportunities for students.
Operations and Supply Club
The members of this club gain exposure in the field of operations and supply management by networking with companies for future career opportunities. The club also does volunteer activities, fundraising for charity, and creates awareness regarding the supply chain as a career path for local high schools.
Some of the top hiring companies for Krannert batch 2018 were Accenture, Amazon, Ford Motor Co., Intel, Mastercard, Staples, and many more.
Stanford University – GSB
Around 3% of the class got placed into operation function with a mean salary of $132,143 ranging between $90,000 to $165,000.
The MBA program stands out because of its focus on general management. The two key things about Sandford GSB is its faculty members and alumni community.
The faculty in the academic area of operations, information, and technology employ various methods from the field of game theory, computer science, operations, probability and statistics, and econometrics. The faculty conducts cutting edge research in the area of:
- Designing contracts and sourcing channels to create shared value
- Learning and hierarchy’s in-service system, which includes designing and operating service systems to process tasks differently.
Value chain innovation initiative
This initiative by Stanford brings together faculty, staff, practitioners, and students to excel in the theory and practice of global value chain innovation through intensive research and knowledge dissemination.
Global Experience requirement
One of the unique elements in Stanford’s MBA program is the global experience requirement were all MBA students participate in one of the following:
- Ten days of global study trip or Stanford exchange program
- The three-week global management immersion experience
- A week-long Global seminar
The University of Michigan – Ann Arbor (Ross)
2.4% of the class got placed in operations management with a salary range of $100,780 to $152,500. The median signing bonus offered to graduates is $25,000.
Technology and Operations department
This department focuses on utilizing technology to transform processes and create value that lasts. The faculty merges the theory and practice to understand the science of value creation alongside technology.
The faculty helps in learning the importance of operations management and how it affects every part of an organization. They teach you to create social value through operations management by using an action-based teaching process. The course is structured, keeping in mind the framework of systematically examining and understanding operations management issues. They incorporate various tools and practices that are useful in managing production and manufacturing systems.
Tauber Institute for global operations
It provides you access to a deep pool of academic, peer, and industry expertise. It’s a partnership between the Ross School of Business and the college of engineering at the University of Michigan.
Multidisciplinary Action Projects or MAP projects are the premier experiential learning opportunity available to Michigan Ross graduates. Lasting seven weeks and taking place just before the summer internship, MAP projects allow students to hone their analytical, project management, and leadership skills.
Students tackle real challenges faced by businesses and gain experience with projects from virtually every sector and industry.
Strategic Operations Club
This club develops and maintains a relationship with firms that are seeking talented professionals in the operations field. It is developing leaders that can meet the future challenges of the dynamic business environment.
The major recruiters are General Motors, Ford, Microsoft Corp., Amazon, Wal-Mart, The Procter & Gamble Co., and many more.
In part 2 of this article, we will cover the next five best business schools for operations. You can write to us at email@example.com with your questions.
Here are a few other articles you may like to read: