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"The maintenance, control, and improvement of organizational activities that are required to produce goods or services for consumers. Operations management has traditionally been associated with manufacturing activities but can also be applied to the service sector. The measurement and evaluation of operations is usually undertaken through a process of business appraisal. Efficiency and effectiveness may be monitored by the application of ISO 9001 quality systems, or total quality management techniques."
Inputs Process Outputs
1.) Role of supporter
It is a basic fundamental principle for operation management. Supporter of strategy has to identify task strategy set by the senior level of managers. After identifying tasks they take necessary actions based on the above strategy for a desired result. They recommend or suggest if there is any improvement to be done in strategic decision in case of any problem. They basically first check the strategy set by the senior level managers and then find the necessary ways to blend the same with the organisation goals in order to attain final output.
2.) Role of implementer
Implementers in organizations also play a very important role. Without implementers an organization cannot work properly. Role of implementer is to carry out tasks set by the senior level of managers in an Organization. They actually implement decisions of senior level strategy to run the business on daily basis. They monitor the tasks very carefully before implementing it. After monitoring they take corrective actions for the tasks implemented.
3.) Role of drivers
Drivers play a very important role in Organizations. It ideally works in team with some senior managers. They steer the things keeping in mind the organisation objectives and the strategic decisions taken at a higher level all together to achieve desired results. The drivers are the operational level staff of an organisation and are mainly concerned with the hands on result of the organisation on a daily basis. This can be exemplified with Store Management team including the Store Manager and his entire operational staff at a Retail Outlet can be described as a Driver for the company as they are finally responsible for attaining the Company's Annual Business Target.
Hence we can observe from the above discussions that Operations Management is the backbone of all organizations, which includes further three more departments i.e. Supporter, Implementer and Drivers. By using these departments organizations achieve there desired goals and objectives .All these departments together play an important role in running the organizations successfully.
Company: MARKS AND SPENCERS
Marks and Spencer had a humble start 125 years back in UK. Over a period of time it has became a prestigious UK's leading retailers. Each week more than 21 million people visit the stores all around the world. They provide highest quality of products like: food, homeware and clothing.
As per Sir Stuart Rose, Chairman, Marks & Spencer, they have spent nearly five years putting in place strong foundation in line with their long term strategic planning.
Growth of 15% per annum (2009-2010)
To satisfy the shareholder and maximise their return.
3.) Reducing packaging and food waste.
1.) Growth of 15% per annum, (2009-2010)
The company wants to open 10 new stores. By opening new stores more people will visit these stores. More visits of people, means company will earn more profit. The company will also look forward to reduce their unnecessary expenditure and control costs. They have focussed towards sourcing cheaper raw material yet not compromising with the quality. The company will also include more attractive items to attract the customers. They will introduce special discount offers on their items which will result in increase their sales.
2.) To satisfy the shareholder and maximum their return
The company decides to issue dividend or bonus share. The company will try to maximise ROI of share holders @ 15% per annum. The same can earn the company reputation and confidence amongst the investors for further investment.
3.) Reducing packaging and food waste
Top retailers have commitment towards waste minimisations. The company will look forward to reduce packaging waste and food waste. They will become a member of association which help them in reducing their waste like; WRAP (Waste & Resources Action Programme). These kind of associations can give lot of help in achieving there goals or objectives towards minimising wastes.
"Marks & Spencer supports the aims of the Court auld Commitment. We are committed to working in partnership with WRAP to help us implement our Responsible Packaging Strategy which addresses a wide range of environmental and social issues identified by our customers."
(Gregory D., © 2009 Marks and Spencer Plc)
Hence from the above discussions we can see that, Marks and Spencer is a very establish organization of the world. They have some objectives. To achieve them they should take steps as per given in analysis. By implementing these steps they can achieve there desired results.
We have discussed the organization objectives in our previous section. Now we will discuss the operations objectives required to achieve the aforesaid objectives below.
1.) Growth of 15% per annum (2009-2010)
Operations Objectives: - Open new Stores in different areas.
In order to achieve above objective the company will do certain things like; the company will open at least 15 new stores in next 12 months time. It will communicate to new set of customers and will try to achieve new set of customers in these areas. The company will also improve the quality of there products, which will satisfy customers more than before.
"We are excited about our potential to drive future growth by deepening our relationship with our most loyal customers and extending our appeal to our more occasional shoppers. We will do this by continuing to innovate and develop our core business while opening new paths to growth. In the coming year we will open a further 50 food only stores, launch a combined credit and loyalty card on a national basis, and open a new concept Home store."
(Holmes R., Chief Executive, © 2009 Marks and Spencer Plc :)
2.) To satisfy the shareholder and maximise their return.
Operations Objectives: - Maximize EPS of the shareholders.
If the company grew by achieving 15% of growth, then the company can look for higher share prices which will increase the EPS (Earning Per Share) of the shareholder. This will boost the confidence of the shareholder and their trust for further investments. The company should try to leave Ethical Benchmark for their customers as well as their shareholders.
3.) Reducing packaging and food waste
Operations Objectives: - Cost improvement and providing value for money.
Company will provide value for money for the customers. Company will recycle their used products, so that company will not have to spend unnecessary money on resources. Company will also reduce their waste. Company will reduce their expenditures like touring etc. Company will be providing value for the money to their customer by giving them quality products. Company will work on long term strategies for cost reduction and cost savings, for example, working capital, outsourcing, working capital management etc.
From the above discussion we can observe that, the company should follow the above parameters if company do so, then company can surely achieve goals said by the strategic leaders.
Resources can be referred to something which can be of help to produce desired output resources can be things like money, manpower or machineries.
The Resources which can be designed to attend to particular result are known as tools. These resources may be are of various types, namely:
1.) Analytical tool
The analytical tool can be explained as device which can be used by the organisation to help senior management clarify a situation in order to facilitate decision making. They will be recognised by many as everyday strategic business analysis tools. A few points should be borne in mind:
a. Never lose sight of the fact that the best way to analyse the needs of the key stakeholders is to actually talk to them, and listen with an open mind.
b. Use a variety of approaches. No one approach will give a complete picture, so use a number of techniques to get a full feel of what is going on and what the positions are.
2.) Casual tool
This can be employed using econometrics for a wide range of application. For example, by using straight regression, one can firmly prove a link between the company's sale and advertising expenditure and then using then using regression analysis for future forecasting.
3.) Time series tool
It refers to the analysis and forecasting of business with respect to the seasonal variation. At times any particular business is directly or indirectly dependent on seasonal variation like any event or weather. System can be referred to something in which various elements come together and organise them to reach a goal. Few examples of system can be:
a. Maintenance system: This is basically a system widely used in production and service related organisation where the system is governed towards customer satisfaction by way of producing tangible and intangible goods.
b. Banking system: This is an example of classic system where the monetary policies are regulated, governed and managed.
c. Quality check system: This system entails quality control and quality audit system for producing any goods and services.
d. Planning system: This is a top down approach and start from strategic planning of senior level management.
e. Feedback system: This is part and parcel of all complex manufacturing and service process. Based on the effective feedback mechanism a system can be aligned to produce desired result.
To conclude we can say resource tools and system can be used to define business process by the way of creating process diagrams, process flows, based on the good and resources produced in a particular organization.
"A systematic and independent examination to determine whether quality activities and related results comply with planned arrangements is implemented effectively and is suitable to achieve objectives."
Again going by the experience discussed earlier the various quality audits which are practised and monitored are as given below: -
1.) System audit: A system audit may be explained as documented activity which may be performed to verify for the purpose of examination and evaluation of objective that may be applicable to quality system which are appropriate and have been developed, documented, and effectively implemented in accordance and in conjunction with specify requirements. To save time and avoid embarrassment, before performing an audit, auditor must know the quality standards/specification against which they are auditing. There are various types of Quality Audit Standard viz, ANSI, ISO, HACCP etc. Manuals and documents that delineate a company's quality program needs to be reviewed in an audit. These includes policy manuals, procedures, and work instructions.
2.) Process audit: A process audit evaluates established guidelines and procedures. It is an audit of process controls of operations or a series of operations. It verifies that process, procedures and work instruction exist, that they are appropriate, and that they are being followed under standard conditions.
For example: A company manufacturing canned food from the agricultural output. Here every step that is undertaken right from plucking of the fruit from washing then dehydrating, packing and ultimately supplying to the retailers for the final consumption of the consumer and checking the steps at every level is process audit for monitoring and improvement if necessary.
3.) Product audit: A product audit is the re-inspection of a product. The product audit is an assessment of the inspection process, which includes the correct use of specifications and the capability of the inspector to use proper judgement in determining the acceptability of product. In addition it is the re-verification that product characteristics are being met with regards to the customer needs and satisfaction.
In general sample auditing of product characteristics is considered a process audit, as the analysis of the product during production illustrates the process performance. If the product is in a completed stage of production and has passed final inspection, it is considered a process audit.
Based on above system audit we can conclude if the business process adapted by the organisation is flawless then the company should continue doing the present operation. However in case of any adverse reporting in audit, the company may take corrective actions as per their criteria.
I have been working on my chosen company for this assignment which is Marks and Spencer's.
It would be delight for me if I would have been given an opportunity to imbibe a quality culture in my chosen organisation.
Importance of quality culture
Well as we all know how important it is to have a quality team in every organisation so as to cope up with the international standards. And as we all know that Marks and Spencer is world famous for its quality products than quantity products, since it is company which is basically a brand which has earned amazing recognition in the field of clothing, warehouse and more recently food business. So as to maintain the standards and keep on coming on with the new ideas which are innovative enough to be successful among the people Marks and Spencer really have to stress or focus on quality.
Starting the culture
When we talk about starting a culture and the continuous monitoring of the embed system there few things which are very essential and important to implement so as to ensure that the culture is been practised, there can be a team which can be formed within the organisation consisting of a senior member from every department who would have a comprehensive knowledge about their department and are senior enough to take the responsibility of this new department , for the basic knowledge a training can be given to them about the quality parameters so that they have some idea about their new key roles. It is important to pick up people from every department because if we are implementing something new in the organisation it should be introduced in all departments so that every department go hand in hand. This new team would be responsible for training their team and ensuring the ground rules are been followed by every one. The regular feed back system can be implemented so as to ensure every body are been perfect in their jobs.
If these simple applications can be followed in Marks and Spencer I am quiet sure this would be something which would help them further in setting up high standards and most importantly would definitely help out to be where they are at this time.
Task :( 3.a)
As discussed earlier, it's clear now that Marks and Spencer is one of the best known high street retailers in the UK. It has over 450 stores and employs over 65,000 people. It also operates overseas. In the face of more intense competition in the UK retailing sector, Marks and Spencer has had to develop a new strategy. This created a period of change for the retailer, involving a refocusing on core areas of quality, value and service along with innovation and trust. Marks and Spencer developed a promotional campaign based on the slogan 'Your M&S' which helped customers to connect with the business. The process had three key features:
developing products that customers want
providing excellent customer service.
In turn, this created a need for staff to be trained to cope with new challenges.
The changes involved changing the organisational structure to make it flatter. This meant cutting out some layers of management and giving employees at the remaining levels more responsibility.
The new structure led to a need for more training. Marks and Spencer develops staff from within the organisation. It also recruits managers from outside at three levels:
trainee managers who have just passed A-levels
experienced managers from other operations.
Each manager requires a number of skills, such as team working, financial skills or leadership. Marks and Spencer uses a profiling system to identify skills gaps. It matches current skills against a matrix of skills required. Where these do not match, training can take place. At the end of every six months, an appraisal takes place to review performance and progress. In discussion with managers, employees identify where they have made improvements in their profile. They then agree on a plan for further development. This helps them to construct a realistic and structured career path. This process creates a cycle of improvement.
Training and development
All managers can develop their own training profile so that they can target their next role. This means that they can create their own career path. The types of training available include:
On-the-job training - carried out in the workplace
Off-the-job training - carried out elsewhere such as at a college.
Training is focused on the needs of the organization, development on the needs of the individual.
Training helps to improve efficiency and also motivates employees to do well. By having well trained and motivated staff, Marks and Spencer has developed a competitive edge over its rivals. The business has recognized that although training has a cost attached to it, it is also an investment for the future.
Employees are better able to manage their own training and development needs by using the cyclical process of appraisal. Through its competencies framework, Marks and Spencer is able to make a precise match between the requirements of a post and the skills of its staff. The success of Marks and Spencer proves that this is an effective process.
Impact on People
While recognising the imperative to streamline Group operations, the Board understands and regrets the painful effect this will have on the people involved. In keeping with the Company's principles, it is committed to consult fully wherever restructuring takes place, with redeployment as the preferred option where possible.