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Operations management is the process of managing the business operations such as it is improving the productivity of the organisation and taking several steps for enhancing the quality of the business (Slack et al., 2010). Operations management is also creating good relationships with the supply chain members and creating a faster or reliable delivery on time. It is also maintaining the time limit and integrating various tasks for achieving the corporate objectives. It is also monitoring the performance level of the organisation and maximising the quality of the organisation (Boddy, 2010). This essay is discussing some important areas of operations management for increasing the productivity of the organisation.
Activities involving operations management and their relationships to other business functions:
Operations management is taking several activities for operating the business functions such as:-
Operations management is managing the operations required for achieving the corporate objectives. It is taking various tasks like taking the orders from customers, delivery the products or services on time. It is collecting the products from multiple sources and delivering them to the customers within the defined period of time (Slack et al., 2010).
Operations management is also creating the resource planning for maintaining the necessary resource requirements and making the relationships with the supply chain or members of the distribution channel for reducing the operations costs (Beynon-Davies, 2004).
Operations management is also taking various activities for meeting the customer's demand. It is developing the product designing or features for meeting the customer's requirements, developing the operational strategies for creating on time delivery and using TQM (Total Quality Management) to maintain good quality services.
Operations management is also increase the level of planning and control system of the business operations and takes several activities like inventory management, controlling the logistic operations and capacity planning for meeting the excessive demand of the customers (Thomas and Fred, 2011).
The relationships of operations to business performance and internal measures of success:
There are some key measurements which is important to increase the performance level of the organisation such as:-
Setting up the standard level: Operations management is maintaining the quality standard by creating a standard level. It is also taking the measurement of the products or services in terms of their functionality, reliability or durability. It is also improving the control procedures of the organisations and regularly monitors the performance level of the organisation (Boddy, 2010).
Criteria for measuring the performance level: Companies need to set up the criteria for measuring the performance level of the organisations. Operations management can set up the criteria buy looking at several factors such as the corporate objectives, availability of resources, necessary staff requirements, skills of the staff or identifying the differences between the input and the output (Johnson, 2008).
Measuring the performance with the standard level: After setting up the criteria for measuring the performance level of the organisation companies can measure the performance of the business with the level of standard and identify the differences. It is important to look at the factors of changes such as high competition, technological changes or diversified demand from the consumers. Taking measurement of the performance can also increase the standard level of the organisation (Boddy, 2010).
Monitoring and controlling the quality standard: Companies need to monitor and control the level of quality standards in the organisation such as they need to set up the standard level and need to maintain the standard level. Effective monitoring and controlling of the quality standard can also find out the factors that can reduce the poor quality and improve the performance level (Slack et al., 2010).
Continuous improvement plan: Companies can also create a continuous improvement plans which can also maximise the performance level of the organisation and find out any potential challenges for the organisation. Operations management is also developing good relationships with the members of the organisation and maximise the performance level (Thomas and Fred, 2011).
The important of administration for managing operations of the supply chain and quality:
In order to manage the supply chain management and the quality effectively companies can take the following initiatives:-
Supply chain Management:
Operations management is also improving the quality of the supply chain management by creating the supply chain planning or improving the supply chain strategies for the organisations (Boddy, 2010).
(Fig-1: Supply chain management plan, adapted from, Boddy, 2010)
From fig-1 SCM plan is making the following steps:-
Supply chain strategy: It is making the strategy for selecting the appropriate supply chain members for the organisation which can provide quality services with minimum level of operations costs (Boddy, 2010).
Supply chain planning: Supply chain planning will make the planning for selecting the appropriate supply chain for the organisation and creating the relationships with the members of the supply chain. It is also makes the planning of the distribution system and identifies the locations where the products or services will be supplied. It is also measure the time required in the delivery process and potential barriers of the supply chain process (Johnson, 2008).
Supply chain enterprise application and assets management: Enterprise application can be used for managing the supply chain management and it will also manage the assets effectively. It is more effective to create relationships with the members of the supply chain and developing the performance level of the organisation (Johsnon, 2008).
Procurement and product lifecycle management: Procurement and the product lifecycle management are also increasing the effectiveness of the operations management of the organisation. It is also considering the necessary financial requirements and measuring the product life cycle for meeting the demand of the customers. Changing the quality of the products or changing product designs or service quality can also improve the service performance (Mullins, 2009).
Logistic management: It is an important element of the supply chain management which is dealing with the logistic operations. Effective logistic management can take the measurement of the demand of the customers and meet the requirements of the customer's expectations (Boddy, 2010).
Companies can improve their quality by using operations management effectively and it can be done by implementing quality cycle or TQM process. Quality management is a continuous process which is considering various steps for maximising the service quality. It is also monitoring the service gaps and taking several steps for reducing the potential challenges of the quality management process (Beynon-Davies, 2004).
The activity involved in and approaches to quality Management:
Effective quality management planning is considering some key stages like:-
Top-down strategy: In the areas of top-down operational strategies companies will look at the process development from top level to the bottom level and corporate strategies will be divided into the business strategy. Supervisors are taking the responsibilities of improving the organisational performance. It is more effective for achieving the competitive advantage (Beynon-Davies, 2004).
Bottom-up strategy: Bottom-up operational strategies are opposite to the top-down strategy and it will change over the time period. It is creating an unstructured or fragmented operational strategies based on real life experiences. In this level strategic decisions will come from the bottom level and companies can make the decisions with high level of coordination (Johnson, 2008).
Quality management can take several approaches like TQM (Total Quality Management), Quality cycle, effective technology, JIT (Just-In-Time) system for improving the service quality. Increasing the level of online customer service, continuous monitoring and improvement plan can also maximise the service quality for the organisation (Mullins, 2009).
Roles of quality management for supporting performance and for evaluating the performance:
The roles of the quality management are to improve the performance level of the organisation and evaluate the performance level such as the following:-
Total Quality Management (TQM) is the process of creating long-term success for the organisation such as it is taking various activities for improving the productivity of the organisation such as improving the products or services and the culture of the organisation (Slack et al., 2010). From fig-2, TQM process is considering several activities for maximising the operational effectiveness of the organisation by the following ways:-
Customer Focus: TQM is creating customer focused service quality such as increasing the level of communications with the customers, taking the feedback from the customers, maintaining the customer's database effectively and solving the customer's problems better than other competitors (Slack et al., 2010).
Planning process: TQM is also improving the planning process which can be done by upper level management. It is considering the effectiveness of the inventory planning, resource planning, logistic management planning and the process for solving the customer's problems effectively (Beynon-Davies, 2004).
(Fig-2: TQM Process, adapted from, Slack et al., 2010)
Process Management: TQM is also improving the process management activities by taking regular assessment of the business processes. It is using effective technology, updated information, IT services or new software for improving the process management plans. Effective process management can also identify the potential problems of the organisation and takes necessary steps for reducing those problems (Stuart and David, 2009).
Process Improvement: TQM is also improving the process by taking new planning such as space planning, product or service designs, controlling process or new technological equipment for making the continuous improvement. Process improvement can also be done by implementing JIT (Just-In-Time) planning (Slack et al., 2010).
Total participation: TQM is taking care of the total participation of the members of the organisation which can be done by using participation of all members of the organisation such as suppliers, distributors, owners or the customers. Increasing the level of monitoring and evaluation process can also improve the level of total participation in the quality management (Beynon-Davies, 2004).
Evaluating the performance level of the organisation:
Quality management is also measuring the performance level of the organisation such as it is creating a continuous monitoring plan for the organisation and regularly assess the performance level of the organisation. It is also creates continuous monitoring of the performance level and make the reporting. TQM process can provide the suggestions by which companies can improve their service quality (O'Brien and Marakas, 2009).
Evaluating the impact on operations management of introducing and implementing changes to enable selling on-line while maintaining a high level of customer satisfaction:
Operations management can measure the potential challenges in the organisation and measure the level of customer satisfaction such as:-
Operations management is more effective for managing the changes in the organisation such as it is developing the decision making process for the management. It is useful for making the assessment of the future challenges and developing the process for improving the organisational performance. Operations management can improve the decision support system in the organisation such as it can identify the customer's demand appropriately and making the products or service design for creating more sales (Mullins, 2009). Operations management is also creating an effective resource management planning by focusing on the factors of changes and increasing the level of intangible sources for maximising the organisational productivity (O'Brien and Marakas, 2009).
Operations management can also create the capacity planning, strategic network design, good relationships with the distribution channel for maximising the revenues over the time period. It can also develop new job design and tasks design for reducing the potential costs and generating more revenues over the time period. It is also making the inventory management and resource planning for increasing the effectiveness of the decision making process (Stuart and David, 2009). Operations management is also creating good relationships with the supply chain and makes the plan for reducing the operations costs. It is also improving the process of JIT system or TQM process for making more revenues of the organisation (Slack et al., 2010).
In recent years, there is a growth of the online selling and distribution system and operations management is managing and controlling the online selling process for the customers. In case of managing higher level of customer's demand operations management is looking at the demand of the customers and satisfying their expectations by providing quality services via online (Johnson, 2008). It is also taking online customer feedback system which is more effective for getting the feedback from large numbers of customers. Operations management is creating TQM process for providing quality services to the customers and meeting their requirements better than the competitors (Mullins, 2009). Operations management is also taking care of the customer's problems and gather information from large group of customers and providing more flexibility to the customers so that they can choose their own brand (O'Brien and Marakas, 2009).
Operations management is creating simultaneous development to the customer services and increasing the service quality by using new technology. It is also increasing product specifications and various types of service quality to meet the demand of the customer's effectively. Using the effective customer database system such as CRM or KAM, companies can meet the customer's demand effectively (Mullins, 2009). Operations management is also providing training to the employees and maximise their performance level to improve the quality of the customer service. Customer can provide their feedback or share their buying experiences with the organisations which can also improve the service quality of the organisation (O'Brien and Marakas, 2009).
Finally, operations management is increasing the effectiveness of the organisation by increasing the quality level and taking various steps for managing good relationships with the supply chain. It is also increasing the quality standard of the organisation and continuously monitoring the performance level of the organisation. Operations management is maintaining the service standard by using JIT process or improving the effectiveness level by using TQM process. Companies need to take care of the continuous monitoring of their service performance for providing quality customer service and to meet the standard level of the service quality.