Strategic Objectives Of Operations Management Within Organization Commerce Essay

Operations management is the area of business; it deals with the production and services. It involves the responsibility of the business operations are efficient with the help of using small resources as needed. It is the process that converts inputs into outputs in the form of product and services. Operation management is the heart of the organization by controlling the operations of the system. It deals with the operation, design and improvement the quality of systems product and services. Operations management, marketing and finance are the functional field of the business with management responsibilities. The importance of operations management in every business organizations activity attached and it plays important role to ensure that organization achieve their objectives and goals or not.

Honda Motors is an automobile company which produces bikes and cars. To managing every business activity it requires necessary operations management techniques. To ensure efficiency and effectiveness in the organization Honda Motors uses operations management. How to well resources like human expertise, machines efficiency and materials are use to improve organizations performance. The company is having primary objective of to earn maximum profit. The company reduces cost of the production using multiple new technologies. The company must have objective to increase productivity by using minimum resources. Honda Motors have effectiveness and efficiency because they fully utilised worker productivity, proper utilization of resources, and management techniques.

Honda Motors use operations management for proper utilization of its products and services management. Wide range of management activities is having product or service management, new ideas for the product to provide support to customers who purchased the new Honda product. Product management conducts by every organization whether it is done intentionally or unintentionally. Honda Motors uses it expert skill for to improving production techniques, quality improvement, marketing through advertise and magazines to introduce new products in the market place.

Strategic objectives of Honda Motors

Fig: Strategic Management

Strategic management is nothing but of the art of implementing and evaluating well decisions that enable an organization to achieve its objective. Setting organizations objective is one of the most important and challenging task. The success and failure of the organization depends upon the setting of the strategic objectives. Strategic objectives are set for longer period. In Honda Motors strategic objectives set for three to five years.

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Honda Motors understand their internal capabilities as well as environment .Strategic objectives plan gives guidelines and directions to Honda Motors for where to start and where the organization is going. Another objective is to motivate the managers and team members for giving reward when they are taking initiative for to progress of the organization. The objective setting helps to evaluate the success of Honda Motors in the strategic planning.

Tool for analysis of the strategic objectives

SWOT Analysis

SWOT tool is widely used in organization for strategic planning, SWOT analysis is basic guide for strategic planning. If management is provide proper information about objective then this tool very useful for the company. SWOT analysis finds capabilities and its internal position by identifying the company’s strengths and weaknesses. Once the organization identified its strengths and weaknesses then it should determine the importance of each factor. Management team must make analysis of all strength and weaknesses and find the level of these strength and weaknesses. The importance of these strengths and weaknesses should be identified.

SWOT Analysis of Honda Motors

Strengths

High R&D

Innovation

Market share leadership in smart segment

Strong brand equity

Unique products

Production system that is refined over the years

Weaknesses

High cost structure compared to China 

Company depends on profits coming from throughout the world, thus subject to global economies performance.

Opportunities

Now a day, Customers continuously increased interest into less fuel consuming and minimum pollution cars, Honda Motors having powerful R&D to develop these types of cars for taking more and more benefit of the market. Customers required quality product with paying minimum cost. Honda motors taking this advantage having his product minimum cost and best quality as compare to other products.

Threats

Economic slowdown due the financial crisis in 2008

External changes (government, politics, taxes, etc.)

Lower cost competitors or imports from

Performance operations, objectives of the company

An organization success is depends on three major factors that is product quality, cost, and speed. In todays market trend every customer focuses on these three things of the product. If any companies product quality is good, and cost is also minimum with having good comfort as compare to other products then your products demand increase in market place. This will helps to organization for long term sale of the particular product. For maintaining all these things, company’s operation management must be good. Organization must be achieving objectives with help of strategic planning. Honda Motors having good operations management, to achieve objective of the organization. Strategic objective planning helps to achieve organization objectives. To maintain good product quality Honda motors uses operations management. With the help of operations management organization finds his dependability of the production, and it also helps to organization how to fulfil the dependability of the organization. Honda Motors have flexible and powerful operations management for making quality products. Honda Motors every year make survey of the market for the understanding current market needs. After the analysis of the survey Honda Motors decides his strategic objectives and these objectives organization achieve by using good operations methodology. In today’s market place Honda Motors having powerful brand because of company produce quality product and sale the product with minimum price as per the market needs. Company launch his product in a market with having good quality, comfort, and minimum price as compare to competitor’s products. Flexibility is most important part of the organization, organization must make changes into the product as per the market requirement and this is achieved by good operations management of the company. Flexibility is very helpful for company’s success. With the help of operations management organization achieve strategic objectives. If company having powerful operations management in a company, it will automatically achieve organizational strategic objectives. Honda Motors always take this advantage and achieve his strategic objectives. [1][2]

Systems to ensure quality of product and services

Business Process Management

In the competitive world every organization creates different products from the competitors for to secure business in the market place. Quality management is the need for today’s business environment. In these days consumer can choose variety of similar products, but consumer select which are different from others. If customer not satisfied with this product performance they switch to this brand. Thus the organization must focus on customers’ needs and wants and differentiation of the quality from the other number of competitors. Customer satisfaction is most important for build up brand loyalty and this helps for long term sales.

To complete specific business outcome business process used set of easy or difficult business oriented tasks. A business process typically starts with a specific need and end with outputs in the form of product and services. Many business processes are sometimes developed by accident, in these processes no real thought in how those processes were developed. In some instances many processes developed in case of changes in technology, environment, policy, and market trends. Whether the processes developed by intentionally or by accidently almost every process need to improvement of the quality of the product or services. For improving these processes organization must make a strategic decision or planning when they will not improve or change.

Business process improvement is a systematic strategic approach to improving organizations business processes and product quality and services. Many times these processes required inputs from internal departments in the organization or outside the organization like inputs from customers or suppliers. Organization must get the customers current requirement about quality, cost and comfort about product and service. Identify new processes or alternative process to make desired output faster, less costly, improve quality of the product.

Business process Management tools

In the market there are many business process management software solutions are available. Following some of the business process management applications are as follows:

Pegasis system

Savvion

Lombardi

Oracle

IBM

Appian

Software AG

To finding the solution buyers should perform an extensive search that meets the organizations long term needs and long term direction for the company there are many more systems are commonly used.BMP solutions having few existing standards. Some of the standards used are Business Process Execution Language (BPEL), XML process definition language (XPDL).

With the help of business process management solutions, it helps to organization to improve all business processes and quality of the product and services. It also helps to increase efficiency of the employees and also helps to find organization strengths and weaknesses. Business process management can apply to improvement of all business process activities. It can help to identify gaps in existing processes. It can help to development of new innovative processes which helps to increase product quality and services, whether you are working on improvement of employee efficiency process or improvement of production system process.

Quality audit system

The internal quality audit is the mechanism with the help of this operation of the quality management system is monitored and similar with the documented quality system is assured. Audits done by the auditors, auditors are appointed by the company for the Organizations functions or procedures being audited. Through the internal audit effectiveness of the quality system is gathered. The main purpose of the quality system is to verify quality of the product and services as per the organizations standard. Internal quality audit is very good for to increase effectiveness of the organization.

Approaches to Auditing

Vertical Auditing

Horizontal Auditing

Vertical audit looks at particular function or department. These types of audit monitor all the activities and procedures in the particular department. Internal audit are generally vertical audits.

Horizontal audit follows start to end process. These types of audit look at procedures as they support the process itself and are likely to period many different departments.

The internal quality audit system is a documented system covering the planning, execution and follow-up of quality audits carried out within the scope of the quality management system. It is part of the quality management system itself.

Internal quality audit system having three functions (required by the ISO 9000)

Management Representative

Internal Quality Auditors

Management Review Body

All these three elements required by ISO 9000 but the method and implementation style of the internal quality audit system (IQAS) is not compulsory. The IQAS needs the corrective action system to be effective. An internal quality audit requires involvement of the organizations senior management peoples. This requires expert on the management team or the management representative. The management representative is the link between the operating quality management system and the company management through the management review function. The management representatives continuously focus on those problems which cannot be solve at any level. These problems may be detected through normal quality control activities, but these problems will also detect at the time of internal audits. The management representative is responsible for ensuring requirement of the organization in terms of policy, objective and supporting procedures are implemented and maintained. Quality manager is also responsible for organizations day to day activities. The role of quality manager is must fulfil these responsibilities. The quality manager must make good relationship with the workers. The quality manager must not have conflicts between workers or team.

The quality manager is responsible for selecting, training and managing the quality auditors, managing internal audits, monitoring the implementation of the audit schedule and give report to the top management peoples. How many auditors required for auditing it’s depend on the size of the organization. The scope of the quality management system and the different functions carried out into the quality management system. For example manufacturing company having manpower 800 peoples, and spread over 3 sites, it could manage with a 24 internal auditor’s team and quality management system covered all the major functions.

When the auditors take a audit in the organization at that time they must be independent. This prevents conflicts and internal politics which may be generates wrong results. Auditing is about communication with the peoples and listening about processes. Auditor must be good listener. The auditor must have good knowledge to ask the right questions for getting the required information.

Implementation of the quality audit system

The audit conducted as per the particular objective base and quality system and standard base. It is conducted by the auditors independently where they are auditing. This means when audit is conduct there must not include internal conflicts and politics which generate wrong results for the auditor.

The typical process of audit will include:

In first stage i.e. preparation stage during this stage auditor makes a list of functions to be audited.

Deciding the scope of the audit.

Preparing proper list of the questions to be covered during the audit.

The manager or supervisor of the function being audited, it must be first receive copy of the list of the audit. The audit processes generally start with the meeting to clarify the scope of the audit. To everyone familiar with the audit process this stage is very short. During the audit noted any non-conformances and cross referenced to either the standard. The process of the audit will closes with taking meeting with auditee to agree the non conformances, and discuss about taking corrective actions and decide dates for actions to be completed. Solutions and the corrective actions and dates for the completion will all in the form of audit report. Once the audit is completed report should be prepared within 24 hours. The audit is not considered as closed until organization take corrective actions have been completed and auditor confirms all taken actions. If the Follow audit is not complete auditor must take re-audit start from the first process and find useful solutions.

Ways to introduce new quality culture

Company, Suppliers and customers we are all in together

When company follows this culture means we are all this together, reminds everyone how individuals success depends on company success and the company’s success depends on how everyone doing their work well. This type of environment helps to identify everyone is a part of organization and having personal identity. It’s also support for teamwork with the teams. It will help to company for create strong employee loyalty.

Open, Honest communication is important

Sympathy

In the organization everyone has problems regarding to personal, social, or any problem in organization work. Managerial person must having sense and appreciation about the employee when employee having any problem.

Listening

Sometimes some peoples not listen to others. Peoples try to say what on their minds, they try to say how they are right and others are wrong, but no one wants listens him, sometimes this will creates organizations big loss. Because whatever they try to say which is very beneficial for the organization. The manager must have encouraged open and honest communication. This will support to making powerful decisions against the problems by involving everyone’s views in the organization. Different peoples having different views and ideas, if in organization having facility to listen everyone’s view and ideas then it will very useful for organizations success.

Focus on Processes

Every organizations success depends on how efficient processes done in the organization. Organization must focuses on processes because all processes in the organization not going well, it will automatically affects on product quality and hence it will affects on product sale. If organization wants success, it must have proper controls on all organizations processes. This will helps everyone to understand the importance of teamwork and cooperation to each other and the independence of the work. This helps to improvement of the quality using efficient quality tools and measure process performance and teamwork. Organization must monitor every process and by making changes into the processes increase efficiency, accuracy and speed to increase the productivity. If processes or plans are predefined in a company its outcome is always beneficial for a company, because management focuses on the processes which executed as per the requirements or plans, it helps to improve the productivity and also quality. [6][3][8]

Improve organizational performance

Identify problems and opportunities for improvement

In Honda Motors organizations work activities have done with the help of operations management activities for to achieve organizations objectives. Organization fixes objectives with the help of strategic planning. Company facing some problems in production system, but company continuously research on these problems and try to improve production speed, efficiency, and accuracy of the product. Company having good R&D team for making continuously research on product quality and try to find solutions which increases product quality better than current quality. It helps to organization maintain position in the current market. In today’s market customers required more fuel efficient cars, this is the big opportunity to Honda making cars with maximum fuel efficient with maintaining good quality of the product.

Organization improvement

Every organization produce product as per the current market need, and try to giving good quality product with minimum cost for improving product sale and secure place in market. Organizations objectives must set with the help strategic planning which helps for success. If the organization objectives set as per the market trend and need then it will helps to reduce variation between what customers want and what product and services deliver. Any product sale depends on how this product fulfils the customer’s requirement. When any organization produces any product, company must be making survey of the market and try to find out what the need of customers. Because what customers and stakeholders required and what product company delivers this is very important for organizations success. If the company produce any product which not fulfils customers need it will results customer leave this product, this will affect on product sale and company’s status in the market.

Implications of proposed changes within the organization.

Organizational change it is nothing but of changing current work routines by introducing new rules and systems into the operation. Organizational change is very difficult because the regular routine activities not support to change. Organizational change also not directly supports because company working in current set environment which is not easily supports to the change. To compete with the competitors in the market every organization must make changes in the organization. Using new technologies and innovations produce quality product which will compete with the competitor’s product. Change in organization is very helpful for organization success. If the organizations proposed change implements properly with the help of change models and tools then it will increase organization efficiency, productivity, quality, and helps to produce quality product in minimum cost, otherwise it will generate organizations loss. The main objective of the organizational change is to increase quality of the product with minimum defect and earn maximum profit with investing minimum cost.

4.4. Implement changes in the organization

Product quality

Every organizational success is depends on his product and services. To increase product quality as per the customers’ requirement and comfort, because when consumers purchase your product if he will not satisfy long time with your product then he will leave your brand. Organization must continuously improve product quality and technology for the secure base in market place and increase sale of your product. If your product is good he compete with others product then automatically improve your organization profit. A good customer always customer always see the product quality. Because they wants long life comfort with the product, customers have many choices while buying a product so for that every company needs to maintain the product quality for to attract the customers.

Cost of quality measurement

In organization the three things are very important which are cost, time, and manpower required for the production, before producing any product every manufacturing company analyze this three things. For to maintains product quality organization must invest cost. Organization must calculate production cost and how much price he will get from the market it is very important. Organization must take care of these things when maintaining quality of the product. Because if organization produce quality product, but in market having competitors same product which having price is less than our product, if our company decrease product cost and this is less than production cost then it will generate organization loss. Sometimes it will not affect on company’s sale of the product, when company having strong brand in a market place.

Honda Motors have balance quality cost as per sales cost, and in the organization effective quality programs can reduce this almost, It will result making direct contribution to the profits. Honda Motors having powerful brand in market, that’s why product cost not affects on product quality. This is the big advantage to the Honda Motors to earn more and more profit. To improvement of total organization performance and quality following points are important:

Leadership must be important.

Better implementation strategy and better planning

Employee involvement should be accurate

Easy and simple identification and measurement

Proper Control and improvement in processes.

Focusing on critical areas

Honda Motors always research his critical areas and try to find solutions for how to convert these weaknesses into strengths. This strategy will helps to organization to create powerful organizational environment, and also helps to increase productivity. When Honda Motors introduce any product in the market after that they make survey in the market and finds critical areas of this product which is directly affect on his sale, for example Honda Motors introduce his new product (Honda City) which is not fuel efficient, this is appeared into customers feedback. Company focus on this area of this product, and try to find how to increase fuel efficiency in current production cost.

Flexibility

Organization must be flexible when any change creates, like environmental change, market changes, technological change etc at that time organization must find alternatives to solve these problems. If any machine downtime occurs at that time whole production not to be stop, it must be having alternatives to continue production process. If any employee knowing any machines operations and in case he will not able to come on work then, it must be having any alternative employee to handle this work. Flexibility in the organization is very important to smooth organization process. These all things support to increase organizations performance.

Human Resource Development

Employee is the major part of the organization. Managers must motivate to employees to complete their work. Arranging training sessions for the employees to the improve work efficiency. Give increments to the employees. Human resource development is also called as personnel developments consist of all activities to ensure that effective utilization of employees to completing organizational objectives. Provide good facilities to the employees where they work.

Automation in production

To improving organizational production processes, it must be use machines and robots for the production. This will very helpful for those organizations that are produce mass production. Automation is very useful for accuracy and fast production. It reduces manpower, cost of the production and helps to support batch production. Using automation in the organization, it increases productivity in minimum time. Minimum manpower is required.

Teamwork

Teamwork is the very important in organization to completing any task properly and fast. Organizational manager must motivate to employees work in team. Teamwork is very important factor to improving organization performance. It increases work efficiency. With the help of teamwork fast problems are to be solved, finds new innovative ways to completing particular task. Easily completed any task because of work is dividing in different parts. It helps to sharing new innovative ideas with the colleague, and this may be helps to increase organization performance. [1][5][7]

Conclusion

In the study of this assignment, we introduce new techniques for improving organizations quality. We also suggest how to manage business processes and how to improve processes. We find organizations strength, weaknesses, opportunities, threat with the help of SWOT analysis tool. We suggest how to improve product quality. In this assignment we take one case as Honda Motors and make analysis of the different factors of organization which affects on organizations quality, and we give solutions for to increase quality. This will helps to organization maintains organization as well as products quality.