BUSN10070 Operations Management In Context Assignment Sample

Module code and Title: BUSN10070 Operations Management In Context Assignment Sample

Introduction

In this essay, the topic of the impact of Operational Management (OM) on the performance of an organisation will be discussed vividly. The functions of OM will be discussed with the resulting impacts on the achievement of the goals and increment of the efficiency of the organisation. Realistic examples will be given based on the topic of the essay with proper and validating explanations and individual factors will be elaborated. The essay will be terminated with the concluding section that will provide the inferring overview of the observations that will be made in support of the topic.

Discussion of the operational management function

HR Planning of the operation

The fundamental function that is important for the OM is the suitable planning of the operational process. The preparation and action of monitoring is the initial and most powerful step for the successful HR planning of the operation procedure for better organisational performance (Zambrano et al., 2021). On a broader note, by the implication of an HR planning function the company has to monitor the production of the commodities by recruiting proper employees. Right monitoring of the team workers, managing the inventories, looking up on employee wellbeing and planning the production together forms successfully operational and HR planning for an organisation that may make the firm succeed in the organisational performance scenario.

Financing and Accounting

The second most significant function of managing the operational process is financing and accounting which is related to the cost-profit alignment for the success and strength of an organisation. Budget creation plays the principal role in meeting production goals without any type of financial disruption.

The financial performance and future objectives of production of an organisation stand on the accurate making of a sustainable allocation of the budget that may yield robust organisational performance (Agbenyo et al., 2018). Apart from these searching for opportunities for appropriate investment and management of the resources through accurate accounting are also the phases of financing for the successful performance of an organisation with a strengthened economical approach.

Research and Development (R&D) of the product

The business process re-designing theory is the process by which firms make impactful efforts for improving and advancing the business interface for overcoming challenges and succeeding in the company’s performance (Sallos et al., 2017). Researching the market for assertive results and composing a team with optimised communications are the primary phases of this OM function.

The direction towards the design with initiating the required changes is the next step that needs to be followed by the firms for redesigning the business process for good organisational performance. Finally, the business process will be re-designed by helping the designers to develop a product along with the proper approach of reconstruction to attain success in the performance of an enterprise.

Controlling and managing the quality

The quality management theory is defined as the process that entails the actions usually taken for developing the quality of information, and knowledge and designing for the production process (Koskela et al., 2019.) This OM function is usually followed by the product Design with the assurance of achieving the desired quality through the initial identification of the underlying problems and risks within the product.

Then inspection of the quality standard of the productions will be done whether those are met or not. Lastly, testing the quality of the product and documentation related to the defects will be done by an organisation to understand how the product quality will be improved.

Forecast

The team devoted to operation management needs to be aware of the term forecast for the prediction of product demand. The question that may be raised from this functional part of OM is the nature of the demand for products in near future and whether is there any proper marketing strategy for the planning of the production.

The types of promotional campaigning which will work for the endorsement of the product may also be observed in future with the help of this specific function of OM. Three types of forecasts are usually seen for successful OM of an organisation such as economic, technological and demand forecasts and all of these are important (Refer to Appendix 1)

Strategic approach

Monitoring, planning the operation and analysing the overall scenario are three parameters of the OM function named as strategic approach (Refer to Appendix 2). The main objective of the strategic approach is the alignment of the organisational goals and decisions regarding the production of improvised performances of the ventures.

Organisations mainly practise a strategic approach to assess and improve the workforce to provide the required strategies for effective performance and results (McIver et al., 2018). Putting consumer satisfaction first, improvement of the production system and control of the costs despite competitive optimization will also be considered as the constraints of this OM function.

Management of the Supply chain

Supply Chain Management theory is one of the major OM functions that determine the state of sourcing, producing and controlling in the case of product or service-driven organisations. It may be stated that the process of SCM theory is the coverage of the sequential events or occurrences for the overall life cycle of a product starting from the origination to the consumption of the latter (Blanchard, 2021).

Generation of the raw materials, availability of the suppliers, manufacturing of the products, distribution and retailing and finally the consumptions, each step of the right SCM impacts the OM.

The way OM function contributes to this function along with the role of the function in organizational performance.

These OM functions the utmost urgency for operational managers to achieve operational efficiency through detecting and eliminating errors, defects, wastes and redundancy in operation management practices. The main roles of these functions are to achieve effective operation which mediates the achievement of organisational goals and objectives through operational excellence in the organisation. Industries have adopted the multiple OM strategy for business management and usually accentuate the quality improvement for business organisations by the use of Total Quality Management in the ambience of industry 4.0 (Sader et al., 2019).

R&D, forecasting and proper SCM need to be implemented to improve the operational process through problem-solving approaches in the operation management of the organisation. Moreover, the use of various IM technologies such as Flexible Manufacturing Systems and numerically controlled machine tools may result in improving many IM functions such as budgeting, quality controlling, accounting, developing new products and many more.

Examining the root causes of inefficiency, errors and defects by extracting meaning from generated data in the operational process is extremely important to calculate the potential and actual capabilities of organizations. Improvement through removing the root problems of errors and deficiencies by going in-depth about the root problem by deploying a design experiment plan is also required to improve organizational performance.

Developing control plans and deploying a standardised process for achieving high operational efficiency may result in the improvement of daily workflows abiding by quality control variables. Successful execution of the operation management process is essential to identify the critical success factor for business operation and effectively aligning the critical success factors for improving the operational quality (Brown et al., 2018).

The benefits of the above-mentioned OM functions are identified as enhanced productivity, increased throughput, improved quality, low operating costs and reduction of error and fewer incidents of damage control. Modern-day OM uses data precision to present a quantifiable and actionable template to clear the bottlenecks and achieve high productivity as well as make tactical adjustments to reduce mistakes and avoid redundancy in operation management.

It has been argued that the use of innovative technology in OM enhances the visibility of the operation process and thus is reflected in decreased cases of damage or incidents in the industry or product and process defects as well as reduction of waste.

Executive leadership engagement and support, standard methodology with skilled personnel in active part, and continuous involvement with measuring, managing and improving enable the organization to keep developing the quality of the operation management. Performance indicators such as financial indicators, process indicators, personnel indicators and customer indicators are crucial to evaluate the success ratio of organizational performance in the manufacturing industry (Ante et al., 2018).

Impact of effective Operation Management in achieving organisational goals and increasing organisational efficiency

Increasing the product and service quality

The foremost function of correct operational management is to check the quality of manufacturing and production impacting the performance of an organisation. Effective OM deals with the fact that how reliable is the product and how long it will last for utilisation before the consumer delivery.

OM will be considered as most effective for product quality to lower the defects and achieve the optimum interface of the product or the services (Nora et al., 2022. Service-based organisations also observe the effective OM for the accomplishment of controlling the quality with the utmost approach to the consumers. On the contrary, if the OM of an organization will not be able to enhance the quality of the product by investing in R&D then it may create an adverse impact in the organizational performance of the company.

Prioritising consumer satisfaction

Customer satisfaction is the result of the quality management surrounding a product or service and dependent on the effective management of the operations and meeting organisational goals. The OM keeps concerned about the cost-effectiveness of a product or service with high-order quality in the favour of the customers (Ghoumrassi and Țigu, 2017).

The operation manager needs to guarantee that the products or services are matching extensively with the customer’s requirements. On the other hand, good and positive customer treatment through the process of delivery is also part of effective operational management that needs to be made certain by the manager of the operation. Additionally, the OM of modern organization need to identify the disruption in SCM or else it may be difficult to deliver the product at right time which may affect consumer satisfaction level.

Improvement of productivity

Disciplined and well-processed OM leads to the supreme productivity of an organisation and influences the organisational performances and goals. OM helps to identify the pertinent resourcing strategies that are needed for the proper designing of a product leading an organisation towards the desired goals (Prusek et al., 2018). The proper and thorough utilisation of the resources is also a responsibility of the operational management team for attaining maximum productivity with the best outcomes in the performance of an organisation and this resourcing will include materialistic and human resources.

Enhancement of competitive advantage

OM plays an effective role in the business performance of an organisation which is significant for bringing a competitive advantage over the competitors (Wijaya and Suasih, 2020). Along with that, the successful approaches of OM play a crucial role and create a greater possibility of becoming the winner in the competitive market scenario by accomplishing the organisational objectives and goals in a speedy process.

The betterment of the services and productions compared to the competing organisations by apt management of the operations will impact the organisational performances towards the increment and will allow drawing or attracting new consumers with exclusive business operations.

Reducing operational costs

The relation of the operational cost is inversely proportional to the enhancing approach of the operational management compiling the facts of customer satisfaction, productivity and meeting the qualities. Speedy and well-established operational management consumes comparatively less time which also initiates the reduction of the operational cost of a product or services of an organisation.

It may be argued that lack of effective OM may disrupt the organisational performances and goals and lead the company towards severe deterioration with low profits, worse quality of the products, less productivity and failures in meeting the consumer requirements.

Real-life examples

OM at Tesco

Tesco is maintaining strong operational management with a long line of front-service employees who are devoted to direct interaction with the consumers at different stores. The acquisition of the inventories for the powerful supply chain of Tesco along with the strengthened quantity of sales assistants for both the virtual and physical transactions bring success in production efficiency. The group sales of Tesco have increased by 2.5% with a profit amount of £2.8 billion in 2021 which shows the appropriation in the OM of Tesco that impacts the production efficiency and enhances the organisational performance (Tescoplc.com. 2022).

The developed supply chain management of Tesco is a strong source for this company, namely managing autonomous capabilities of transportation important for the supply process deeply impacts the organisational performance towards progress. Additionally, Tesco possesses vast resourcing factors to face the sudden demands for supplying goods and this OM is helping the company to enhance the efficiency of production. The technological elevations of this company are one of the effective parts of the OM that develops the reliability of the supply chain process which is important for assessing how this organisation is performing.

OM at Audi

Audi is focusing on integral operation management for the conjugation of both the competitive approach and meeting the requirements for the adoption of the futuristic fitness of the company with value-driven behaviour. This firm concentrates on managing the risk factors that may be perilous for organisational growth and this activity may be treated as an important dimension of the operational management of Tesco.

The OM of the value-based production lineage of Audi such as manufacturing vehicles with less CO2 emission and technological optimizations regarding the smart endorsement of the product may also influence the performance of the company on a positive note.

SCM of Audi is evolving and currently, this company is moving with direct 14,000 suppliers from 60 countries and more with the environmentally sustainable approach in OM. The increment in the revenue of this company by 10% in consecutive years of 2021 and 2022 from £40, 375 to £44,561 shows the impact of OM in elevating the production efficiency for Audi (Audi.com. 2022).

Conclusion

From the above essay, it may be concluded that operational management plays an essential role in the improvisation of organisational performances and hitting objectives and goals. The impacts of the effective management of the operations were elaborated with correct explanations along with realistic examples of the OM of Tesco and Audi.

Recommendation

The recommendations are as follows: –

It should be recommended to the organisations by knowing the process of the operations thoroughly, through constructing audits for right-to-the-point budgeting to enhance the organisational performances.
The companies should be advised to focus on the supply chain infrastructure to advance the OM and perform the steps in the SCM in a scheduled manner to grow the performances of the company with the achievement of the goals.
It should be suggested to the firms to develop the OM in such a way that the productivity and resource allocation may increase for the fruitful consequences to the performing approach of the company.
The organisations should be recommended to emphasise the improvising of OM to observe the maximum amount of customer satisfaction for better performances.

References

Agbenyo, W., Danquah, F.O. and Shuangshuang, W., 2018. Budgeting and its effect on the financial performance of listed manufacturing firms: Evidence from manufacturing firms listed on Ghana stock exchange. Research Journal of Finance and Accounting, 9(8), pp.12-22.

Ante, G., Facchini, F., Mossa, G. and Digiesi, S., 2018. Developing a key performance indicators tree for lean and smart production systems. IFAC-PapersOnLine, 51(11), pp.13-18. Audi.com. 2022. Downloads (2022) audi.com. Available at: https://www.audi.com/en/company/investor-relations/annual-reports.html (Accessed: November 4, 2022).

Blanchard, D., 2021. Supply chain management best practices. John Wiley & Sons.

Brown, S., Bessant, J. and Jia, F., 2018. Strategic operations management. Routledge.

Ghoumrassi, A. and Țigu, G., 2017, August. The impact of the logistics management in customer satisfaction. In Proceedings of the International Conference on Business Excellence (Vol. 11, No. 1, pp. 292-301).

Koskela, L., Tezel, A. and Patel, V., 2019. Theory of quality management: Its origins and history.

McIver, D., Lengnick-Hall, M.L. and Lengnick-Hall, C.A., 2018. A strategic approach to workforce analytics: Integrating science and agility. Business Horizons, 61(3), pp.397-407.

Nora, A., Nurdelila, N. and Harahap, D.S., 2022. Analysis Of Operational Management Functions In Ud. Aneka Plastic. International Journal of Educational Research & Social Sciences, 3(3), pp.1191-1200

Prusek, S., Turek, M., Dubiński, J. and Jonek-Kowalska, I., 2018. Increasing productivity–a way to improve efficiency of operational management in hard coal mines. Archives of Mining Sciences, 63(3).

Sader, S., Husti, I. and Daróczi, M., 2019. Industry 4.0 as a key enabler toward successful implementation of total quality management practices. Periodica Polytechnica Social and Management Sciences, 27(2), pp.131-140.

Sallos, M.P., Yoruk, E. and García-Pérez, A., 2017. A business process improvement framework for knowledge-intensive entrepreneurial ventures. The Journal of Technology Transfer, 42(2), pp.354-373.

Tescoplc.com. 2022. Home – Tesco plc (no date). Available at: https://www.tescoplc.com/media/759057/tesco-annual-report-2022.pdf (Accessed: November 4, 2022).

Wijaya, P.Y. and Suasih, N.N.R., 2020. The effect of knowledge management on competitive advantage and business performance: A study of silver craft SMEs. Entrepreneurial Business and Economics Review, 8(4), pp.105-121.

Zambrano-Romero, W., Solorzano-Solorzano, E., Azua-Campos, M., Quimiz-Moreira, M. and Rodriguez-Veliz, M., 2021, September. Monitoring Tool to Improve Strategic and Operational Planning Processes in Universities. In The International Conference on Advances in Emerging Trends and Technologies (pp. 3-15). Springer, Cham.