Operations Management in Business Essay

In write this assignment the template provided by the college has been utilize serve welling in completing the Assignment in the correct format. selective information for this assignment has been collected from various sources much(prenominal) as academic pieces of writing from textbooks and lecture notes. Information on the lodge has been gathered from the organisations website, journal names and brass statistics. References entrust be provided at the end of the assignment under the referencing section.LO1 render the structure and aims of concern organisationsLO1.1 rationalize the importance of in operation(p) pick offment outgrowth management flock be identified as a cop educate of busial activities employed by the fundamental law to transform alternative inputs into yield and work rigs. So the resourcefulness inputs atomic number 18 the factors of exertion such(prenominal) as materials, parts, supplies, technologies, capital, human resources and informat ion. The transformational process is that set of activities with which trading trading trading operations managements produces output that is value to a node or client in the make-ups external environment. So the concept of adding value is critical to operations management. So when operations add value to the original woo of the resource inputs, where a business fag end generate addition or non betterment org grass provide public answersto the society. So no organization can be successful unless they manage their operations efficiently. An organization has to manage its operations in an effective manner so that customers will aim a satisfactory output.Read more trading operations c be renderWhy an operation gutter position is in-chief(postnominal) to Kingslice1.To take contentedness decisionsThat is as operation manager, has to decide how much capacity will be wishinged and fatality to identity how flexible capacity should be.2.To take facilities decisionsSo op eration manger has to decide where should facilities be located and to a fault how many an other(prenominal) facilities will be deprivationed and what size they should be.3.To make addflow and engine room decisions functioning manger should decide what workflow layout would be best for Kingslice and also what technology should be apply.4.To make materials and inventory decisionsHow often should inventory be ordered and how large should inventory aims be.5.Have to make whole step decisionsAs a bread producing company how Kingslice can earn best forest outputs and what level it should be. So as the operation manger in Kingslice it is really chief(prenominal) to concentrate on productiveness and profit readiness. So as the operation manager I defend to look at Quality, Efficiency and Effectiveness issues in the company. Quality StandardAs it is expected to produce various kinds of breads to tuck customers needs it is very necessary to keep on bill quality in products. Eg Wholemeal bread, sinlessness bread, Gluten-free bread. To ensure quality, the depend qualified ingredients must be bought at a reasonable price to be competitive among the rivals. So the stinting Order Quantity model will be an effective spear in this case. Efficiency StandardShould suppress wastage and need to produce the in neat order amount of breads according to sales. It is very important that all the equipments need to be up to date according to new(a) technology bakers should be surface trained. Effectiveness StandardThis will help Kingslice to generate more profit and will attract more investors in to the organization. So having skilful staffs and prissy equipment will help to lift up the effectiveness in Kingslice. LO1.2 let off the need to produce safely on condemnation to cost to quality and at bottom the law Operational talent is the ability of an organization to translate products or processs to its customers in the most cost-effective manner feasible w hile still ensuring the high quality of its product, portion and support. To improve operational readiness its important to analyze the current situation of the company, which occurs when the right combination of the throng, process and technology come together to enhance the productivity and value of any business operations, while reducing the cost of routine. It is important for, Kingslice as bread producing company to, -Decrease operational cost and optimize efficiency-Manage and develop product quality and ensure regulatory compliance -Generate a real time hire driven sales and operational readying processSafetyKingslice should guarantee that caoutchouc of all staffs. Staffs need to take a port out a health and safety trainings which will be effectual be more cautious at work and react efficiently to safety issues. Equipments should be service all over period of time to delay any danger. CostMinimising wastage will help Kingslice a lot. So the save money saved could b e used in other departments which pretermit facilities. Avoiding surplus cost will help the company to stay competitive. convictionProducing the bread on time will help Kingslice honouring its contacts to the sellers. By this act, other retailers can switch to Kingslice. Quality customer and retailers feedback need to be interpreted in to consideration seriously so that we can identify which beas need to improve the most. Having regular contacts with staffs is another form of feedback where ideas can be discussed as head 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. in that location argon laws that protect the environment at Kingslice we should try to recycle toss off.LO1.3 Explain the link between operations management and strategic mean operations management deals with desig ns, management with products, processes, services and supply chemical chains. It is considered that the acquisition, development and resources utilization that company needs to provide the sobers and services to fulfil their customers needs. So basically it is the acquisition of resources and processes them into finished well behaveds according to the customers wants and the business goal. Strategic be after is a method for a company send offning the present base on the throw awayions 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 equal to be Strategic planning gives a clear view onHow resources should be apportiond.The issues need to be addressing.The strengths and weaknesses..Strategic Planning Process affair between Strategic Planning and Operation focal pointIn Kingslice, as the operational manger should be able operate following operations strategies, qualification to produce bread at low cost top exe cutive produce in accord with specification and without error Ability to do things quickly in response to customer demands and thereby offer gyp lead measure between when customers orders a product and when they receive it. Ability to deliver products in accordance with promises made to customers Ability to change the tawdriness of output signalAbility to change the mix of distinct productsEg Wholemeal bread, White breadAbility to innovate and introduce new productsEg Gluten-free bread, Multi-seed breadApplying the localize analysis in Kingslice,-Strengths Get the best out of the staffs and equipping well trained staff and technology. -Weaknesses Need to reduce the wastes and flummox to follow or standard recycling method. -Opportunities Innovating products and change package design will help to summation the sales. -Threats competitors and health and safety issuesLO1.4 micturate a systems diagram to gild a typical businessLO2 Understand the link between operations manage ment and strategic planning LO2.1 Explain the Three Es (economy, efficiency and effectiveness) In this 3 Es theory it is often referred to Value of Money. preservation Minimising 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 execute tasks with realistic attempt (doing things the right way) This can be measured in terms of the inputs compulsory to generate the outputs. So if a task 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 target before a task begins and then evaluating whether the targets have been achieved not. Integrating 3Es use of the resources in improving quality of the products and the customer service in SubwaySo this 3Es are interrelated so as operations manger when dealing wi th improving quality and customer service its necessary to consider all 3. So I can propose following, Benchmarking against other rivals for indications as to whether we are economic plentiful, efficient enough and effective enough. Comparing with other parts of our organization cadence and interpreting trends over a period of timeAiming to continuous riseSo I would suggest following measures to improve above qualities in Subway,Economy Performance MeasuresMaintaining a cost per unitComparing the unfeigned cost input with planned inputEfficiency Performance MeasuresMinimising the wasteMake sure staffs well trainedEquipment must be up to dateEffective Performance MeasuresStoring the right amount of stocks constituteing the best exchange 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 delive ring goods and services achieve the essential level of quality. node is the main root in Tesco Plc, without them they cannot operate in the completive market. While offering good customer services and the good quality products need to have an idea about the cost minimisation of the product as well. So in this case I apprehendd major out flow of the company is marketing and branding cost. and then I have to identify better marketing and branding technique to drop overall Tesco marketing and branding cost for our products. But marketing is very vital to survive in this competitive market (ex.Asda, Sainsburys, Morrisons, Waitrose) thereof have to look any alternation cost to reduce rather than bare-ass marketing cost. I came with an idea to reduce production cost at controlling, Minimise the extra over time,Minimise unnecessary utility expenses vigilance ordering then we can reduce transport cost and increase the sales in an efficient way. Hence some Tesco expresses dont have their own bake off it will be good can to build their own bake off to control waste, cost and provide high quality products. In the mean time I have given my attention to best customer services end-to-end our entire retail shops. Byadvising all retail managers to look later on extra satisfactory stock at any time and maintain all warehouse activities including production ,servicing and manage of chilled foods and grocery items while minimal of wastage and maximising customer satisfaction 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 performance objectives that underpin operations management Strategy in a business organization is essentially about how the organization seeks to survive and prosper w ithin its environment over the long-term. The decisions and actions taken within its operations have a direct furbish up on the basis on which an organization is able 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 performance 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 services produced.The ability to innovate and introduce new products and services.Operations strategy has a vertical human relationship in the corporate power structure 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 tenderness to business and corporate strategies. Similarly, an operations strategy might be essential in response to market indispensablenesss (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 acti ons over time. LO3 Understand how to organise a typical production processLO3.1Explain linear programmingLinear programming is the process of pickings various linear inequalities relating to some situation, and finding the best value procurable under those conditions. Let X be the number of items produced in canonical andY be the number of items produced in Deluxe.Let P be the profit from both Basic and Deluxe.Then10X+ 15Y= PA level best units of capital is 100.Then1004X+5Yrequirement 1Maximum effort 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 job3 points are available and the 4th point should be derived from the graphical record 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 raceway analysis and network planningCritic al travel plan analysis is a step by step technique for process planning. This is series of activities find out the earliest completion of the stand and register network analysis techniques used to identify the schedule flexibility and the critical fashion of the project schedule network diagram. The critical path is the longest path (sequence of activities) in a project schedule network diagram. Because it is the longest path, it determines the duration of the project and thusly the finish dates of the project given the start date. CPA requires careful planning so projects can exsert smoothly. Improve efficiency and cash flow, then 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 reminder operations.Time related identifies the maximum time for an operation to be completed.Identify potential problems in implementing operation.Identifies where and when resources (in cluding human ones) are needed. The approach is in ternion parts.Create the network break the overall task down into decided activities and then create a logical network showing the relationship between the activities in terms of what follows or precedes what.Calculate the timings make betokens 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 distribute this is where critical path analysis is really important in areas such as constructions. Havingformed 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 in itiation document3-BResearch site one4ACResearch site two2ADDocument requirements site one6BEDocument requirement site two5CFDefine non functional requirements2AGDefine agreed requirements3D,E,FHWrite invitation to tender4GTotal days29So 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 enquire arrangement and control of labour, materials, and capital input to produce the required amount of money and quality of production most efficiently. Operational planning and control are based on forecasts of future demand for the output of the system. But make up with the best possible forecasting and the most finely tuned operations system, demand cannot always be met with existing system capability in a given time period.Unexpected market trendsnew product developmentscompetitors actions bed 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 restore the organization in the long run. Medium 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 plann ing and controls have to take in to action Routing_ decides the quality and material type_organizing production control forms_investigating which part of the product need 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 DespatchingFollow up and expediting supervisionLO4 Be able to apply relevant techniques to the production of an operational plan for a typical businessLO4.1 Produce a set of intelligibly defined operational outcomesCompanies achieve operational outcomes by reducing or avoiding costs. We can use SMART tool to define the outcomesSpecific authorise and definite terms describing abilities, knowledge, values, attitudes and performance. Measurable It is feasible to get the data and data are accurate and reliable 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 Describes where organization would like to be within a specific time period As the Operations passenger car at Currys,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 Currys. 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 wint be waiting 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 tarry faithful to Currys. Discount vouchers, Percentage discounts can be issued to the customer. This will satisfy customers. Some customers experience problem s in going through the catalogues. By having trained staffs, it is promising for themto offer help to the customers who wish to use their supporter in deciding which particular 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/qua lity.cfm how to ensure the overall quality standard in currys-Providing vision and direction to achieve results.-Making decisions apply accurate data and facts.-Delivering value 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 required purpose and recommendationOperations management is a broad area of business management that involves labor relations, statistics, manufacturing control, and policy creation, among oth er 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 carefully monitored and in case the latter(prenominal) go out of hand it is impossible to keep the business on the right trackReferenceInvestopedia. (2011). Operations Management.Available http//www.investopedia.com/terms/o/operations-management.aspixzz1j2qL9mmNMIT Sloan School of Management. (2012). Operations Management. Available http//sloan.mit.edu/omg/om-definition.php.Operations Management. (2012). Operations Management.Available http//www.operationsmanager.com/operations-manager-fields/operations-management-careers/ shackle/opmgmt_graphic/.Angell, Linda C., and Robert D. Klassen. Integrating Environmental Issues into the Mainstream An Agenda for Research in Operations Management. diary of Operations Management. August 1999.Weiss, Howard J., and Mark E. Gershon. Producti on 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). Organisations 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/ member/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.Availabl e 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/capacity-management/index.htm Schniederjans, M. & Q. Cao. (2001). Analternative analysis of inventory costs of JIT and EOQ purchasing. InternationalJournal of Physical statistical distribution & Logistics, (31), 2, pp. 190-117. Duncan H. (2012). Project