Operations Management in Business Essay

In writing this engagement the template provided by the college has been used helping in completing the Assignment in the correct format. reading for this assignment has been collected from various sources such as academic pieces of writing from textbooks and lecture notes. Information on the guild has been gathered from the organisations website, journal articles and g everywherenment statistics. References bequeath be provided at the end of the assignment nether the referencing section.LO1 comprehend the structure and aims of caper organisationsLO1.1 Explain the importance of operating roomal management surgical procedure management open fire be identified as a complete class of managerial activities employed by the government to transform resource inserts into product and service outputs. So the resource inputs atomic number 18 the factors of production such as materials, parts, supplies, technologies, cracking, human resources and information. The transformational deal is that set of activities through which trading trading operations managements progress tos output that is value to a client or client in the organizations external environment. So the concept of adding value is critical to operations management. So when operations add value to the original apostrophize of the resource inputs, where a craft commode generate profit or non profit org lav provide public runto the society. So no organization washbasin be successful unless they manage their operations efficiently. An organization has to manage its operations in an utile manner so that nodes will get a satisfactory output.Read moreoperations Management EssayWhy an operation gutter position is important to Kingslice1.To condition capacity closesThat is as operation manager, has to root how much capacity will be studyed and need to identity how compromising capacity should be.2.To take facilities decisionsSo operation manger has to decide where should facilities be loc ated and also how legion(predicate) facilities will be needed and what size they should be.3.To make extendf low-spirited and engineering science decisionsOperation manger should decide what workflow layout would be best for Kingslice and also what technology should be used.4.To make materials and record decisionsHow often should inventorying be ordered and how large should inventory levels be.5.Have to make forest decisionsAs a bread producing community how Kingslice shag achieve best quality outputs and what level it should be. So as the operation manger in Kingslice it is re all(prenominal)y important to concentrate on productivity and profitability. So as the operation manager I digest to look at Quality, competency and Effectiveness issues in the phoner. Quality StandardAs it is judge to produce various kinds of breads to meet customers needs it is very essential to reserve standard quality in products. Eg Wholemeal bread, White bread, Gluten-free bread. To ensure quality, the justly ingredients must be bought at a reason qualified footing to be competitive among the rivals. So the Economic Order Quantity model will be an effective tool in this case. Efficiency StandardShould reduce wastage and need to produce the right amount of breads check to sales. It is very important that all the equipments need to be up to watch according to untried technology bakers should be well trained. Effectiveness StandardThis will help Kingslice to generate more profit and will attract more investors in to the organization. So having skilful staves and proper equipment will help to lift up the effectiveness in Kingslice. LO1.2 Explain the need to produce safely on prison term to cost to quality and within the law Operational efficiency is the ability of an organization to deliver products or function to its customers in the most cost-effective manner possible while still ensuring the high quality of its product, service and support. To advance availabl e efficiency its important to analyze the current situation of the comp each, which occurs when the right combination of the passel, touch on and technology pose together to enhance the productivity and value of any business operations, while cut back the cost of routine. It is important for, Kingslice as bread producing company to, -Decrease functional cost and optimize efficiency-Manage and climb product quality and ensure regulatory compliance -Generate a real prison term demand driven sales and operational planning functionSafetyKingslice should guarantee that safety of all staffs. Staffs need to withstand out a health and safety trainings which will be useful be more watchful at work and react efficiently to safety issues. Equipments should be service over period of time to prevent any danger. CostMinimising wastage will help Kingslice a lot. So the salvage money saved could be used in other departments which lack facilities. Avoiding unnecessary cost will help the company to stay competitive. TimeProducing the bread on time will help Kingslice honouring its contacts to the retailers. By this act, other retailers corporation switch to Kingslice. Quality customer and retailers feedback need to be taken in to consideration seriously so that we can separate which areas need to improve the most. Having regular meetings with staffs is another form of feedback where ideas can be discussed as well as issues in how to improve quality. LegislationTo maintain our competiveness and reputation in the market Kingslice need tostick on to the law. Health and safety policy should be respected by giving the staffs the necessary equipments to work. There are laws that protect the environment at Kingslice we should try to recycle waste.LO1.3 Explain the link among operations management and strategic planning operations management deals with designs, management with products, processes, services and supply chains. It is considered that the acquisition, ripe ning and resources utilization that company needs to provide the goods and services to fulfil their customers needs. So basically it is the acquisition of resources and processes them into finished goods according to the customers wants and the business goal. Strategic planning is a method for a company planning the present based on the projections what will be needed in the future. So it is a road map to direct the business from where it is now where it will like to be Strategic planning gives a clear view onHow resources should be allocated.The issues need to be addressing.The strengths and weaknesses..Strategic Planning moveLink between Strategic Planning and Operation ManagementIn Kingslice, as the operational manger should be equal to(p) operate following operations strategies, Ability to produce bread at low costAbility produce in accordance with detailation and without error Ability to do things quickly in response to customer demands and thereby glumer trivial lead ti mes between when customers orders a product and when they let it. Ability to deliver products in accordance with promises made to customers Ability to change the strength of productionAbility to change the mix of different productsEg Wholemeal bread, White breadAbility to initiate and introduce new productsEg Gluten-free bread, Multi-seed breadApplying the SWOT analysis in Kingslice,-Strengths Get the best out of the staffs and armament well trained staff and technology. -Weaknesses Need to reduce the wastes and overhear to follow or standard recycle method. -Opportunities Innovating products and change package design will help to increase the sales. -Threats competitors and health and safety issuesLO1.4 Produce a systems diagram to illustrate a typical businessLO2 Understand the link between operations management and strategic planning LO2.1 Explain the Three Es (economy, efficiency and effectiveness) In this 3 Es scheme it is often referred to Value of Money. Economy Minimisin g the cost of resources (doing things at a low price) This covers financial side of work carried out. It is measured by considering the cost of resources consumed into value of output delivered. Efficiency Performing designates with realistic attempt (doing things the right flair) This can be measured in terms of the inputs required to generate the outputs. So if a working class can be finished with less resources, the efficiency is been improved. Effectiveness The point to which objectives are met (doing the right things) This can be measured by setting up a objective lens before a task begins and then evaluating whether the targets have been achieved not. Integrating 3Es use of the resources in up(p) quality of the products and the customer service in SubwaySo this 3Es are interrelated so as operations manger when dealing with improving quality and customer service its necessary to consider all 3. So I can advert following, Benchmarking against other rivals for indications a s to whether we are economic enough, efficient enough and effective enough. analyse with other parts of our organizationMeasuring and interpreting trends over a period of timeAiming to ceaseless improvementSo I would suggest following measures to improve above qualities in Subway,Economy achievement MeasuresMaintaining a cost per unitComparing the actual cost input with planned inputEfficiency Performance MeasuresMinimising the wasteMake sure staffs well trainedEquipment must be up to dateEffective Performance MeasuresStoring the right amount of stocksIdentifying the best selling meal depending on the locationIdentifying the target customer groupResponding to customer feedbacksLO2.2Explain the tension between cost minimisation and quality maximisation.Cost minimisation aims to achieve the most cost efficient way of delivering goods and services achieve the essential level of quality. Customer is the main root in Tesco Plc, without them they cannot survive in the completive market . While bump offering good customer services and the good quality products need to have an idea around the cost minimization of the product as well. So in this case I realised major out flow of the company is merchandise and branding cost. Therefore I have to identify better marketing and branding technique to fall asleep boilers suit Tesco marketing and branding cost for our products. But marketing is very vital to survive in this competitive market (ex.Asda, Sainsburys, Morrisons, Waitrose) Thus have to look any alternation cost to reduce rather than bare marketing cost. I came with an idea to reduce production cost at controlling, Minimise the extra over time,Minimise unnecessary utility expensesManagement ordering then we can reduce transport cost and increase the sales in an efficient way. Hence some Tesco expresses dont have their aver bake off it will be good move to build their own bake off to control waste, cost and provide high quality products. In the mean time I h ave given my attention to best customer services throughout our entire retail shops. Byadvising all retail managers to look after extra satisfactory stock at any time and maintain all warehouse activities including production ,servicing and manage of chilled foods and grocery items while minimum of wastage and maximising customer happiness towards highest profitability margin while in according to control the safety features. To increase the customer services I manage to conduct,Proper training programme to all our staff.Evaluate the retail shops and individual staff by mystery shopperWell experience new staff recruitment,LO2.3 Evaluate the significance of the five transaction objectives that underpin operations management Strategy in a business organization is essentially about how the organization seeks to survive and prosper within its environment over the gigantic-term. The decisions and actions taken within its operations have a direct impact on the basis on which an organiz ation is adapted to do this. The way in which an organization secures, deploys and utilizes its resources will determine the extent to which it can successfully pursue specific accomplishment objectives. Slack et al. (2004) argue that there are five operations strategies 1 Cost The ability to produce at low cost.2 Quality The ability to produce in accordance with specification and without error. 3 Speed The ability to do things quickly in response to customer demands and thereby offer short lead times between when a customer orders a product or service and when they receive it. 4 Dependability The ability to deliver products and services in accordance with promises made to customers (e.g. in a quotation or other published information). 5 Flexibility The ability to change operations. Flexibility can comprise up to four aspects The ability to change the volume of production.The ability to change the time taken to produce.The ability to change the mix of different products or service s produced.The ability to innovate and introduce new products and services. trading operations strategy has a vertical relationship in the unified hierarchy with business and corporate strategies, and horizontally with the other functional strategies, most notably with marketing strategy. Operations strategy might come about in a top-down or a bottom-up process with regard to business and corporate strategies. Similarly, an operations strategy might be developed in response to market requirements (i.e. market-led) or be based on the capabilities of its operations. Slack et al. (2004 p.67) argue that an operations strategy concerns the pattern of strategic decisions and actions, which set the role, objectives, and activities of operations. Their use of the term pattern implies a consistency in strategic decisions and actions over time. LO3 Understand how to organise a typical production processLO3.1Explain linear programmingLinear programming is the process of taking various linear inequalities relating to some situation, and finding the best value obtainable under those conditions. allow X be the number of items produced in Basic andY be the number of items produced in Deluxe. permit P be the profit from both Basic and Deluxe.Then10X+ 15Y= PA maximum units of capital is 100.Then1004X+5Yrequirement 1Maximum labour availability is 60 hoursThen60 2X+4Y30 X+2Y-requirement 2The number of items of the products should be greater than or equals to zero. ThenY0 and X0Graphical method is used to solve the problem3 points are procurable and the 4th point should be derived from the graph Point (0,15) , (0,0) and (25,0) is available ,X=16.7 and Y= 6.7substituting in P= 10x+15yP=167 + 100.5=267.5Therefore the maximum profit = 267.5LO3.2 Evaluate critical pass analysis and net profit planningCritical highroad analysis is a step by step technique for process planning. This is series of activities determining the earliest completion of the project and schedule network an alysis techniques used to identify the schedule flexibility and the critical path of the project schedule network diagram. The critical path is the extended path (sequence of activities) in a project schedule network diagram. Because it is the longest path, it determines the duration of the project and wherefore the finish dates of the project given the start date. CPA requires careful planning so projects can tryout smoothly. Improve efficiency and cash flow, therefore materials can be ordered to arrive only as they are needed. Critical path analysisMay be used as part of the decision making process.Enables a firm to plan and monitor operations.Time related identifies the maximum time for an operation to be completed.Identify possible problems in implementing operation.Identifies where and when resources (including human ones) are needed. The approach is in three parts. arrive at the network break the overall task down into discrete activities and then create a lucid networ k showing the relationship between the activities in terms of what follows or precedes what.Calculate the timings make estimates of the time required for each activity and calculate the total time required for the project and the critical path the path of activities which must happen to estimate if the project is to be completed on time.Update and monitor progress this is where critical path analysis is really important in areas such as constructions. Having make the network and made the estimates and initial calculations, the progress of the activities can be monitored and the whole network updated as work progresses, to ensure that the project completion is not delayed.Example-The following tasks, estimates and precedence have been agreed in a project. TaskActivityEstimated datesprecedenceAWrite project initiation document3-BResearch site one4ACResearch site two2ADDocument requirements site one6BEDocument requirement site two5CFDefine non functional requirements2AGDefine agr eed requirements3D,E,FHWrite invitation to tender4G enumerate old age29So we can prepare a project network for this project. After that we can be able to identify which activities are on the critical path of the project. Observing this path we can be able to infer the estimated elapsed duration of the project. The project network for this project-Critical path = ABDG H= 3 + 4 + 6 + 3 + 4= 20 daysIn order to complete to this project take 29 days normally but after applyingcritical path can be able to finish this 20 days and we can save 9 days from this.LO3.3 Explain the need for operational planning and controlOperational planning and control decisions involve arrangement and control of labour, materials, and capital input to produce the required quantity and quality of production most efficiently. Operational planning and control are based on forecasts of future demand for the output of the system. But even with the best possible prognostic and the most finely tuned operations syst em, demand cannot always be met with existing system capability in a given time period.Unexpected market trendsnew product developmentscompetitors actionsCan throw the forecasts off and problems in the operations system can reduce capacity. At these times, shorter term managerial decisions must be made to allocate system capacity to meet demand. Long term planning involves factors such as fixed capacity planning and product planning. These decisions will affect the organization in the long run. moderate and short term planning involves variable capacity planning, product forecasting, operations scheduling and inventory management. Operation manger organises the operations functioned be allocating responsibilities and creating structures. To ensure business will run smoothly in the long run following planning and controls have to take in to action Routing_ decides the quality and material typesetters case_organizing production control forms_investigating which part of the product n eed to produced or boughtSchedulingPreventing unnecessary delays and completing operations successfully and efficiently. _Master scheduling_Manufacture schedulingDespatchingHow the process and operations are done through the route sheets. _Centralised Despatching_De-centralised Despatching quest for up and expeditingInspectionLO4 Be able to apply relevant techniques to the production of an operational plan for a typical businessLO4.1 Produce a set of clearly defined operational outcomesCompanies achieve operational outcomes by reducing or avoiding costs. We can use SMART tool to define the outcomesSpecific go across and definite terms describing abilities, knowledge, values, attitudes and performance. Measurable It is feasible to get the data and data are immaculate and undeviating so it can be assed in more than one way. Aggressive but Attainable Has potential to move the organization forward. Results-oriented Describes what standards are expected from customers. Time-bound Desc ribes where organization would like to be within a specific time period As the Operations Manager at sets,When a customer orders for any particular product online it will be delivered next day, so as the operational manger if we can improve that same day service. It will enhance the quality of customer service provided by togs. Reviewing all the shifts and rescheduling the staff rota. So we can put more staff in the busy periods so it will help to provide excellent customer service because customers wont be hold in the long queues to get served. Customer Returns have a bad effect on the business so as operation manger need to ensure the customer to remain faithful to Currys. Discount vouchers, Percentage discounts can be issued to the customer. This will satisfy customers. Some customers experience problems in tone ending through the catalogues. By having trained staffs, it is promising for themto offer help to the customers who wish to use their assist in deciding which particu lar product the customers are looking for. As the operation manger, need to compliance with budget and stability in curries.LO4.2 Produce a network plan and indicate the resultant critical pathTaskActivityEstimated datesprecedenceASearch for suppliers and prepare storage10-BObtain quotation and get the approval 20ACPlace Order5BDInform The accountant 10CEReceive Goods20D G HFReceive invoice15AGChecking goods and acceptance5F, CHMake payment15ATotal daysLO4.3 Explain how quality could be defined and maintainedQuality means different things to different organizations depending on the context. In currys quality is more likely to mean service excellence and customer care which is measured in terms of meeting customer expectations and customer satisfaction.http//www.iia.org.uk/en/Knowledge_Centre/Resource_Library/quality.cfm how to ensure the overall quality standard in currys-Providing vision and direction to achieve results.-Making decisions using accurate data and facts.-Delivering va lue through the development of individuals-Managing process through an integrated approach-Increasing efficiency-Focusing on customers and anticipating future needs-Continuous improvementQuality management tools, standards and models-ISO 9000 series-Total quality management-Investors in people-Service excellence-Six sigmaTo achieve quality standards in currys need to,-Provide quick response to customer feedbacks and problems-Have fully trained staffs-Revise supply chain of the products if products, defects higher than the returns expected per day.-Have up to date softwares and hardwares to provide after sales services if requiredConclusion and recommendationOperations management is a broad area of business management that involves labor relations, statistics, manufacturing control, and policy creation, among other things being a good operation manager demands lots of hard work and dedication as he/she has to demonstrate how he/she manage scarce resources, time, cost, quality and so on. Planning and control has to be guardedly monitored and in case the latter go out of hand it is impossible to keep the business on the right trackReferenceInvestopedia. (2011). Operations Management. functional http//www.investopedia.com/terms/o/operations-management.aspixzz1j2qL9mmNMIT Sloan School of Management. (2012). Operations Management. accessible http//sloan.mit.edu/omg/om-definition.php.Operations Management. (2012). Operations Management.Available http//www.operationsmanager.com/operations-manager-fields/operations-management-careers/attachment/opmgmt_graphic/.Angell, Linda C., and Robert D. Klassen. Integrating Environmental Issues into the Mainstream An Agenda for Research in Operations Management. Journal of Operations Management. August 1999.Weiss, Howard J., and Mark E. Gershon. Production and Operations Management. Allyn and Bacon, 1989.Bateman, Thomas S., and Carl P. Zeithaml. Management Function and Strategy. Richard D. Irwin, 1990.Ashim G. (2009). make-ups External Environmental.Available http//www.practical-management.com/Organization-Development/Organization-s-External-Environment.html.Slack, N., Chambers, S. and Johnston R. (2004) Operations Management (4th Edition), Harlow Pearson Education.Basic Decision Making Tools. (2012). OPERATIONS MANAGEMENT. Available http//www.masterclassmanagement.com/BusinessManagementCourse-BasicDecisionMakingTools.html Bailetti, A. J., & Litva, P. F. (1995). Integrating Customer Requirements into Product Designs. Journal of Product Innovation Management, 12(1), 3-15. Productivity Press. Retrieved from http//www.sciencedirect.com/science/article/B6VD5-3XX6S36-23/2/23228d6294be75b53b3295d8b9d9e2c8 Hart, C.W. (1996). Made to Order. Marketing Manage- ment, 5(2), 1222.Marc L. Songini. (2000). Just-in-Time Manufacturing.Available http//www.computerworld.com/s/article/54131/Just_in_Time_Manufacturing?taxonomyId=126&pageNumber=2. Team quest 2010 http//www.teamquest.com/solutions/itil/service-delivery/capacit y-management/index.htm Schniederjans, M. & Q. Cao. (2001). Analternative analysis of inventory costs of JIT and EOQ purchasing. InternationalJournal of Physical Distribution & Logistics, (31), 2, pp. 190-117. Duncan H. (2012). Project