Strategic Objective Of Operations Management Information Technology Essay
Farr and Wyde is striving in a highly geared and completive marketing environment, as said in assignment case a term ‘cutthroat’ marketing environment. A well design operation management style is essential to compete in tough marketplace. The damages are severe when hacker like Snarly trespass their cline information and leaving sign of vulnerability for intrusion into any management segments.
“The Planning and control of operations concern the anticipation and implementation of flow through a system to ensure that demands sure met in a timely manner.”(MACKENNEY, 1969 : 139)
The importance of Farr and Wyde effective operation management is defined below;
Operation Structure: Desire structure has to be linear and functional, the case suggests it was may be a bureaucratic and inflexible without perforated boundaries for continuous interchange of information or interaction. A functional management style of operation is required to deliberately check the loop whole in organization system to avoid any breech ethical conduct and safeguard necessary information.
Segments Integration: Operation management importance implies for Farr and Wyde, correct coordination of all fragmented responsibilities or segregated department. Communication gap is to be taken seriously for internally and externally opportunities and thread.
Delegation of Responsibility: A well manage organization structure of Farr and Wyde would always define and delegate its responsibilities and company policies to react in case of unprecedented circumstances as in situation of Snerdly the Chip Hacker’s unlawful act of steeling business information.
Market Operation Ethics: A openly performs market activities of Snerdly should be counter to eliminate market Hackers. Disguise or deception must be dealt with firm committeemen of market operative ethics and norms. Get away with cheating so short cut to market success could be discourage
1.A2 The Strategic Analyses Objective of Farr and Wyde
Strategic Objectives: The Farr and Wyde would consider the following strategic objectives as remedy to their losses in the business.
Securing all type of communication by Complying with ISO 27001-ISMS
An upgraded and securely automated telephone system
A totally dedicated sales department for customer’s orders
Introduce secure web base marketing strategy over the internet
Client data base for any order feedback and queries
Progression and promotional marketing activities
A pragmatic approach to sales and marketing
Whatever be the firm’s would be Farr and Wyde should look seriously to these many objectives and implement in their firm before more harm would be done to the business.
All type of communication written, verbal and electronic should be kept secure and safe specially clientele and contact data. Therefore a client data approach is suggested for future reference and any future order queries. The separation and segregation of sales and marketing department in necessary for dedicated strategy and secure environment. Customer can be dealt with in a more precise manner, then have this department access to online ordering so no client can be left unattended. Online apparently is unsecure way of customer service but a safe and secure website internet environment could lead the firm to margin of profitability and quality of sale procedure.
By doing some critical changes specially recommended the certification of ISO 27001- information security management standard, Farr & Wyde would be apple to approach their marketing strategy in practical way.
1.B1. Nestle USA Enterprise Resource Planning
“Creating a total company quality culture is one of the biggest challenges of a total quality management programme.” (Bank, 2000 :140)
Over View of ERP: My working experience does not allow me to share the implementation story, for many reason as the given hand out suggest that the company over $500 to $1,000 million of turnover and also have legacy of fragmented departmental system. In most case of ERP implementation business reengineering took place to success the ERP implementation. So I have chosen different organization i.e. Nestle USA to whose ERP I am familiar with.
Nestle USA ERP Implementation Case: The much criticize ERP implementation and total disaster in its initial rollout was a payoff success at vary end after the total implementation cost of $280 and much publicize duration of ERP become operational of 6 long years because it was painfully tolerable to complete.
"If you try to do it with a system first, you will have an installation, not an implementation," she says. "And there is a big difference between installing software and implementing a solution."
(Jeri Dunn, CIO of Nestlé USA, 2003)
When the ERP was implemented successfully to $8.1 billion US subsidiary has touch the corporate culture which they it was risky.
"It touches the corporate culture, which is decentralized, and tries to centralize it," she says. "That's risky. It's always a risk when you touch the corporate culture." (Anne Alexandre, an analyst Nestlé HSBC Securities in London, 2003)
The Nestle ERP Objective: Business concern had very disarray operational structure with numerous varieties of brands and flavor e.g. only nestle USA has 29 different vanilla brands for its 29 plants and each has different price although vendor is same. Different brands of product such as Stouffer's and Carnation and these were holding by a new who was alienated from there central headquarter. The Nestle USA has to were making its own decision due to incapable to coordinate to it Swiss parent company. Economy of scale was unattainable due to uncoordinated fragments of this business holding rather than a business entity.
"I don't think they knew how ugly it was," says Dunn, referring to the company's condition. "We had nine different general ledgers and 28 points of customer entry. We had multiple purchasing systems. We had no clue how much volume we were doing with a particular vendor because every factory set up their own vendor masters and purchased on their own." (Jeri Dunn, CIO of Nestlé USA, 2003)
Nestle ERP proposal: Chairman of Nestle USA coin term for worldwide Nestle enterprise as “One Nestle, Under SAP”. At this point it was not easy to access the implication of the ERP system implementation. There was not a unified framework of structure across the board in Nestle USA which could differentiate its corporate operational and marketing strategy to it’s disperse headquarter and lose its sensitive information of assists and liabilities.
Implement Operation Proposal: They agree to install SAP as cornerstone to ERP then diligent and continuous time taken untiring work begin to module the following sub ERP systems;
All The Divisional Functions
Team of some 50 top business executives and ten IT specialists made it possible to change old disintegrated approach to new Nestle USA ERP system.
"We made it very clear that this would be a business process reorganization and that you couldn't do it without changing the way you did business. There was going to be pain involved, it was going to be a slow process, and this was not a software project." (Jeri Dunn, CIO of Nestlé USA, 2003)
Surprisingly due to implementation implication SAP modules had revised for these;
Manugistics' Supply Chain Module
ERP Implement Outcome: End game was a success story of the Nestle ERP to be considering one Nestle under SAP and SAP project code-named best as business excellence through systems technology. Now Nestle USA totally integrated link to its parent company headquarter Switzerland and saving revenue and human resource with decision made on fact finding results of corporation.
“To date, she claims, the Best project has saved the company $325 million. (Because
Nestlé is headquartered outside the United States, it doesn't have to disclose its financial information to the SEC.)” (Nestle's ERP Odyssey, 2003)
TASK 2: Design and monitor appropriate system to ensure quality of product and services.
2.A1. Resources, Tool and System Required Supporting the Business Process
Out of two main aspects of business operation which are;
TOTAL QUALITY MANAGEMENT
I would deal with the operations Strategy on preliminary stage of my business and further to that I would improve the quality management style by using TQM.
Operation Strategies: Following strategies are core competence for my staple food online stores.
Low Cost Operations complements nature of the business itself is suitable for low cost by utilizing the online website for attracting customer to order their food needs on line in the area of their preference. Online sales website must contain these feature mandatory to complement with five S i.e. sell, serve, save, speak and sizzle.
Volume flexibility and variety of product and service specification also make efficient use of business resources. Market or customer segmentation and preferential customer care are supportive business strategies.
“Both academics and consultant make a very valid distinction between TQM programmes that are properly implemented and maintained and those that are not.” (Bank, 2000 :218)
Improving Quality by TQM: I would not be using the Total quality management as tool or approach for maximizing the quality as whole. Instead it would be a continuous process to gain dersied status of quality of standard service with good quality of food supplies as well.
Psychological Impression is related to customer perception about my store chain as compare to other and what make me better and reliable to order online then rest of my competitor in area of online food ordering. The Key approach to that geed impression would be ISO-9000 certification covering the OHSAS.
Self Manage Teams- Although maintaining quality to a desired level would be management responsibility. Certain required level can only be accomplished by a task or objective driven and a delegated team. Especially since it is an online chain food store organization therefore, it would perform better with clear and concise job specification for quality management level with continuous improving quality. So my organization would be a learning organization when the operation of business starts.
2.B1 Quality Audit System / Practice
“There is an international standard guide to quality-system auditing (ISO 10011:1991). This points out that audits are required to varify whether the individual elements making up quality systems are effective in achieving ithe stated objectives.” (John S. Oakland, 1996)
ISO Quality audit and certification must be logical criteria to capitalize on business operation to increase daily sales turnover. My company would seek ISO 22000 food safety management system, for ISO 9000 quality standard and ISO, OHSAS, for health and safety. This is a realistic approach for quality audit by third party ISOQAR and eliminates any doubtful unhealthy business operative style. In next part I would be explaining the incorporative quality culture for my chain of grocery enterprise.
Quality and Quantity Control Approach: Avoiding this as entrepreneur for level of quality control would lead my business to low and poor quality grocery store and I would have to incur much higher preventive cost. Glossary retailing is associated with both type of inventory sold out i.e. FIFO (first in first out) as well as for fresh fruited and vegetable it is LIFO (last in first out). By examining preventive cost and following two main aspects of grocery retail chain outlets a sure quality standard could be maintain and monitor.
Fitness of Use: A direct quality approach which put profitability and price margin at side and deal in alienation with health and safety of the user or customer. According to ISO 22000 food and safety, goods must be consumable with safety hazard must be fulfill at time when human consumption is intend. Same is goes with service fitness and expectation of quality of services, so my company should consider both the quality of food and services in real time fitness of quality and delivery to customer
Value of Households Commodities / Services: A good example of good value is durability of European products such as Black & Decker, Philips and ford automobile. So I should be cautious in ordering good inventory to my supplier for further retail in my store of good quality and a reasonable retail price would be determine for customer satisfactions. Market price compassion is a good technique but it should be with product and service benefits and availability.
2.C1. Incorporate Quality Culture for Ensuring Continuous Monitoring and Development of Online Sales Order
Incorporated of quality culture has been discussed in detail in previous section of this task. Now I would incorporate those Qualities for online sales website.
“The Development of quality culture is a critical area of the achievement of quality,” (Beckford., 1958 :29)
Quality Satisfaction for Customer: A satisfied customer would be my high priority; it would only be achieved with TQM approach. My business is a B2C (business to consumer) entity and much of the delegated resources would monitor for customer benefit for profit maximization. The TQM for quality culture should be develop and monitor for online sales website through these best quality of products and services.
Real Object Buying: Website has to be a real order guide and should not contain any doubt or illusive terms. What is seen is what is getting would be a hard core criteria for online sales. The website has to be interactive to best serve and speak about the product and services. Online sales representative or chat online for sales queries have to be provided as website sales interactive.
Sales / Order Support: An attractive, informative website would be user friendly to entice customer to place their order with ease of real convenience and save their time and money. It must be serving purpose of sales support of customer. A specification and confirmation of order placing to acknowledge delivery with online sales receipt may feel customer shopping at home in real market place.
Time – Based Competition: In this age of information and technology time is the essence. There basic criteria has to be taken into consideration for swift delivery of food and grocery;
Fast delivery time
To get to the final stage of fast delivery time, delivery mechanism would have to undergo fast order delivery system and elimination of unnecessary stages which cause order dispatch delay and slow order reach out to recipient. Order tracking mechanism may satisfy to an extend of information about places order status but not actual satisfaction when order would delivered. Order tracking facility would be a secondary standard of on-time delivery
TASK 3: Improve organizational performance.
Company Introduction: Deliverance is a US base company which has its four branches all over London to prepare fresh and deliver fast variety of food and snacks.
3A.1. Work Activities of the System Monitor for Problem Identification and Improvement
System Monitor at Central Branch: Out of four different branches I have privilege to work and monitor the system of Deliverance.
“The investigation of error, defects, and problem can provide valuable information that can be use in their prevention. Participating in investigations offers an opportunity for training.” (John S. Oakland, 1996 :207)
An ISO 9000 quality standard after verification of HACCP (health analysis and critical control points) must be an essential working environment requirement and Deliverance would have to sought it if have not done so. The seven HACCP principles would be benefiting kitchen production and delivery methods. The following system has been developing in Deliverance to perform daily activities.
“It’s not delicious enough, it’s not hot enough and it’s not cooked in kitchens that are clean enough. It’s called take away and it just isn’t good enough. Or wasn’t until Deliverance.” (www.deliverance.co.uk, 2009)
Centrally Located Call Center: This is only call center design for all four branches so the customer order can be taken their and redirect to corresponding branch for order execution. This call center is under development and it would handle all order by telephone or via internet. To receive order on Deliverance website https://www.deliverance.co.uk/ there are several workstation and order operator.
Kitchens Area and bikers: This is other operation area for order delivering and customer satisfaction. The Kitchens are link directly to the call center so as soon as order done from customer, it then forward to the branch’s kitchen which freshly make the orders and then the alert biker off he go for fast delivery to the nearest branch area.
“We don’t have a cramped kitchen and a panicky chef trying to juggle restaurant customers as well as take away customers. We have 5 gleaming state-of-the-art kitchens and 48 specialised chefs serving you. We don’t have amateur delivery drivers who think that Stoke Newington is somewhere near Crewe. We have a dedicated fleet of 120 bikers who know and deliver to 78 square miles of London, on time.” (www.deliverance.co.uk, 2009)
Identification of Problem: The delivery time is depend over biker to take the order from kitchen and his time start when he receive the order receipt, not when he actually stuff his bag with the food. The delivery time is also very important to negotiate with customer. In real term the biker’s time to delivery should start when food is in hot food bag, and then a delivery time monitoring setup start which could tell how long it has been taken when biker is back and scan given barcode. Beside there should be a tracking system of biker and communicative devise for lost and delayed orders.
3A.2. Recommendation for Improvement of Process to Achieve Goal for Customer and Stakeholder Satisfaction
We think like mad and work like crazy to make sure that the most delicious possible takeaway experience is delivered to your door and your office desk. (www.deliverance.co.uk, 2009)
The Process Glitch: As I have mentioned above process of calculating the time for a deliver to start is need to be count at the stage when bike actually in possession of food and ready to go. Therefore to my suggestion this would be the last activity of bikers inside the kitchen and taken the bill order / receipt or locating the order place should be before in hand of delivery bound food.
“In the marketing/ operations interfaces, it is never acceptable to design a product, service, system or process that the customer wants but the organization is incapable of achieving.” (John S. Oakland, 1996 :33)
The mission statement of the Deliverance is to “Cooke Fresh and Deliver Fast”, this statement is true up to kitchen area. To visualize given statement Deliverance has to improve its outdoor process to achieve the set goal so the customer can be deal with total satisfaction, where as integrity of Deliverance primarily and delivering that order by a person i.e. biker secondarily be remain intact.
Improvement of Process: The improvement to the process can be introduced in following way;
Order receipt should come to person who is behind the oven.
Simultaneously address for the order to be delivered should be given to delivery assign biker. Location can be locate and understand.
As soon the biker start to go with the outbound order the person behind oven, she or he would then give the order to biker in fraction of time.
As soon as the order food boxes assign to biker then his time would start in system.
3G Skype mobile is a low cost substitute for tracking and back to Deliverance dispatch area communication.
3B.1. Wider Implication of XYZ General Corporation Changes
ISOQAR audit would be management decision criteria to follow the guideline of quality standard and deal exactly for implication situation required. The scale of implication of in XYZ General Corporation is depends or varies on two main factors.
Existing Competence and Capabilities: In the scenario of available competence and capabilities XYZ automobile production management would have to meet these following challenges
Best Performance Design: It suppose to be a high performance design, but as factory production would be on initial stage there for the best design should be making available is a serious challenge for engineers and automobile technicians.
Consistent Quality: To capitalize of automobile performance and design a consistent quality would have to be observing at all out marketing models. Keeping a promise to customer expectation and quality cars delivery could not be as easy as it seem on road full of new model cars.
Bench Marking: A bench mark can only determine the quality standard. Benchmarking with competitors can lead to a progressive competition and could complement TQM or continuous improvement of XYZ. Being a new in industry as market follower or may be challenger, own set of bench mark would be advice with feasibility to achieving.
Cultural Change: This is what the production manager concern was as at this vary initial stage of trial production, worker required training and contentious improvement to go any extend of length production with any breakdown in plan assembly line.
“in order to survive organization must develop the ability to change themselves continuously in a fundamental manner.” (Burnes, 1953 :255)
Future Investment Plan:
Customization Flexibility: Providing customer oriented product in a much more flexible manner i.e, price, time and place would not difficult to deliver in early phase of marketing strategy but availability of resources and skill may be in greater demand
“There is a great deal of profit to be made by quality improvement in products and services, business processes and people. Internal analysts at IBM, for example, put the cost of non-conformance or failure to meet quality standards in its products and service at a minimum 11 per cent of revenue or $5.6 billion in 1986.”(Bank, 2000 :31)
Appraisal Cost and Failure Cost: These cost related to product development and product production. For future market order and higher performance design as well as continuous improve production appraisal cost would decide changes should be made. Failure cost could be internal in factory by inefficient and skill worker where as external cost of after sale maintenance or serviced is also associated to failure cost
Volume of Business: Economy of scale through volume of business order and cars units sold per year would increase profit yielding by reducing the manufacturing cost. More automobile sales directly related to cheaper cost of production.
3B.2. Evaluation of Plan implementation Organization Changes
“American organizations, which were at the forefront of these development, began to adopt long-range planning techniques. This necessitates first defining the organization’s objective, then establishing plans in order to achieve those objectives, then finally, allocating resources, through capital budgeting, in line with the plans.” (Burnes, 1953 :197)
The plan can be evaluate in reference to previous part of i.e. wider implications of XYZ General Corporation. But I have to consider the case scenario of the implementation. The Initiative has been take to go into production with allocated budgets of £13 billion before 2009. The set objective was to go under production of newly formed automobile division and start market production in early 2009. A goal or target can be reset as per changing circumstances and new set goal is for 2010 which seem reasonable and realistic to me as evaluator.
“Testimonies from believers in TQM continue to celebrate it as a viable way of becoming customer-focused, cutting costs and delivering bottom-line result.” (Bank, 2000 :214)
Trail Run Period: Trail run period of a year time is not short time as we aware of the fact the market completion is very high and every New Year comes with innovation and modification. In automobile industry almost a year is a period for new model cars. Being a new to the product and partially new to process of manufacturing automobile it was prudent decision by the management to delay production in assembly line so the worker can be accustom to the system of process. This refers to Kaizen TQM or continues improvement for an organization. Another such method of changing organization is learning organization and it demonstrate the total dependability of the organization on its own capital as well as human resources.
Alternative Production Strategy: This is where dependability come from outside and it has flavor of outsourcing. Expert workers and technicians would be inducted to company’s assembly line plants for meeting extendable deadline. The new staff may have to deliver but accomplishment to fix date will still be uncertain. On the other hand recruiting process is also cost effective and quality resource management required more time than it would be given.
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