Unit 25 Principles of Operations Management Assignment

 

Programme	Diploma in Business
Unit Number and Title	Unit 25 Principles of Operations Management
QFC Level	Level 5
Unit Code	H/508/0539

 

Executive Summary

Daily, we employ a massive amount of material items and different services. The majority of the physical items have been made and the majority of the services have been supplied by individuals in companies. Simply like fish are supposed to be ignorant of the water that encloses them, the majority of us provide light attention to the managerial procedures that manufacture these commodities and services intended for our application.

The Unit 25 Principles of Operations Management Assignment explores the mechanisms behind the creation of these daily essentials. For this assignment, we focus on the furniture supply business as the case study under analysis. This report has been crafted with the support of UK Assignment Help Services to ensure the highest standard of academic quality and practical relevance. Additionally, guidance from Locus Assignments has been instrumental in shaping a comprehensive and well-structured exploration of the principles of operations management.

By leveraging the expertise and resources offered by these leading assignment assistance providers, this report aims to deliver valuable insights into how goods and services are produced efficiently, meeting both consumer demands and organisational goals.

 

Task 1

Explain why operations management is important for organisations

Operations management is important for organisations

Source: The importance of sustainable operation management, 2014.

 

 

There is a single universal area across each and every business irrespective if the company is a government organisation, producer, mining or bank that is they all carry out operations (Kumar and Suresh, 2008). Each and every organisation has procedures and each business makes goods or services moreover they all need possessions (inputs) that are changed into finished goods.

Selected as capable of turning out professional managers competent in gratifying premeditated positions in business firms, the requirement of the carrying out of operations management can’t be skipped. Operations management is extremely significant in business operations given that it structures the core of the business by scheming the arrangement of operations. Operations management is regarding the blueprint, operation, and development of the structures that generate and present a business’s key goods and services. Similar to marketing as well as finance, operations management is a well-designed area of industry by apparent executive roles.

 

Analyse the operations functions of a selected organisation.

A conventional instance of operations management would be a supplies manager accountable for a furniture factory. Also, the other managers who toil in the furniture unit are quality managers, and assembly and account control managers– who may too be measured to be operational in operations management (Slack, Chambers and Harland, 2004). Hence, operations managers are accountable for the administration of the actions that are elements of the making of furniture. Their direct tasks comprise running together the operations procedure, implementing the blueprint, preparation, control, quality enhancement, and operations approach. Their indirect tasks embrace working together with those administrators in other practical regions in the business whose responsibilities have an effect on operations. Such areas include marketing, finance, accounting, personnel and engineering.

Operations managers' tasks comprise:

• Human resource management: The group in employment with the furniture supplying business (or any other organisation, in general) either works straightforwardly to generate a commodity or service or offers aid to the ones who generate it. The workers are the key resources for every firm.

• Asset management: The firm’s assets are its tools, buildings, equipment as well as stock needed for the production of the furniture. The most important asset in this case is the Wood of various varieties.

• Cost management: The major portion of cost involved in producing furniture is the one related to the acquisition of the raw materials (wood/ steel/plastic etc.) needed for building the furniture. Operations management helps the business have a competitive edge by assisting in the reduction in costs of production.

• Decision making is a fundamental responsibility of each and every operations manager. Decisions have to be taken in planning the operations scheme, administration of the operations scheme and improving the operations arrangement. The five foremost kinds of decisions in the furniture business are regarding:

a. The procedures by which furniture is made

b. The class of furniture

c. The capacity, size and quantity of the furniture to be produced (the capability of operations)

d. The inventory (stock) required to manufacture furniture

e. The supervision of staff

 

Evaluate, by using a process model, the operations management of a selected organisation.

A process model is an explanation of a procedure at the kind intensity. Given that the process model is at the category stage, a procedure is carried out. The unchanged process model is utilised repetitively for the growth of a lot of applications moreover, therefore, has a lot of case points. A single probable exercise of a process model is to lay down the way things have got to/ be supposed to/might be completed contrary to the process itself which is in fact what takes place. A process model is almost an expectation of what the procedure will appear as. The scope of development shall be determined through real system improvement.
 

 

Source: Own study

1. Research:
Not at all like other configuration processes the furniture outline process doesn’t begin with a brief, being the customer, in case there is one, is typically asking for a “made to order” quantity of furniture lacking any particular prerequisites, except maybe the dimension. Additionally, furniture fashioners who are independently working frequently make pieces like they set out and put them up for sale a while later. In this logic, the term furniture alludes to an extensive variety of things from seats to cupboards to wardrobes to timber doors. In place for a furniture fashioner, or any architect besides, to be ceaselessly roused it serves to be decently researched. Considering what different furniture designers have been doing and what the modern companions assist to get more ideas (Pannerselvam, 2004).
 

2. Design Concept:
The main genuine step in the process model is the idea; this is the beginning stage in which the whole thing develops. The brainstorming session by operations management is necessary. However, the thought is essential to be recorded by penning it down, drawing the general configuration structure and also the designs and techniques of furniture in demand.
 

3. Scale Model:
It is advised to the operations management to make a small model which depicts the idea of the furniture piece. In case any problem is foreseen, it has to be resolved during production. In case of unforeseen issues during business operations, they can be sorted out during production so as to avoid the wastage of raw materials. The scale model might also assist in recognising which kind of woodwork methods are largely suitable.
 

4. Prototype:
The subsequent step is to construct a full-size model. A model is essentially a tiny scale model completed as full-sized. In case this is a special design piece, then a precise similar building procedure will have to be utilised for the final manufactured goods. In case of any mistakes that didn't appear in the small-scale design, they will be resolved in the prototype with the intention that there will be no additional difficulties prior to the building up of the furniture.

5. Testing:
One time the prototype has been made, it requires to be checked. In case it's a chair, anybody wants to relax; in case it’s a shelf then it is needed for keeping things and various similar requirements. For the bulk creation, furniture has to be tested and also a few prototypes need to be formed so as to know what the confines of the quantity of furniture are.

6. Presentation:
As the operations are done, the management needs to keep a photograph for portfolio reasons. In case there is a customer, in that case as all of the trying has been finished, the piece is to be handed to them. He might just accept it as it is or would ask for any changes in it. In that case, the management needs to send the same back to the workshop. However, if there is no client, the piece will be kept in the display area for sale.

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Appraise the importance of the three E’s to the organisation
 

The three E’s, namely- economy, efficiency and effectiveness are directly interlocked. Occasionally, they transact with each other. For instance, the economy of bringing the raw material (wood/steel) for the furniture can be augmented in multiples by getting the supplies once in 2 months; however, it would decrease the effectiveness of the operations to an undesirable level. The manager's responsibility, in attaining the most advantageous level of exchange among these three, is quite difficult. A common way is that the operations manager ought to centre on the organisation’s objectives and strive to distinguish if economy or efficiency procedures are supportive in attaining those objectives. The 3 E’s ascertain that the excellence of performance ought not to be negotiated in looking for superior economy or efficiency. Conversely, if probable, effectiveness is supposed to be boosted by those gauges.

a) Economy: At the time checking on the procurement of assets for the economy, the evaluator tries to find out whether assets have been acquired in the perfect proportion, at the opportune spot, at the correct time and at the right cost. Such a survey presumes accessibility of satisfactory principles. Anyhow the genuine situation is that instant standards are not accessible. Consequently, the operations manager needs to focus his criteria regarding the essential targets of the association. While deciding the perfect measure of assets, he would check whether the administration set out its requirements plainly and, the extent that this would be possible, quantitatively. The evaluation of requirements ought to be regular, prompt recognisable proof of requirements for which options are dissected to focus least cost.

b) Efficiency: Efficiency is a troublesome concept in the furniture business. It assumes that standards for inputs and outputs are accessible. Yet in a substantial number of cases, the standards are not accessible plus the reviewer needs to work with the operations manager to focus on settled standards. The mainly generally utilised standards, on the other hand, are arranged output for agreed inputs set around the furniture’s managers. In case they are not accessible then different strategies are utilised to survey the level of efficiency.

c) Effectiveness:: Evaluation of effectiveness deduces subsistence of assessable purposes or results of public curriculums. These purposes or outcomes provide a criterion for the management. Articulating a view on effectiveness is an imperative and essential step forward in the customary scope of operations management.

 

Assess the impact of the tension between cost minimisation and quality maximisation in the organisations

1. Cost minimisation:: All firms like the furniture supplier aspire to decrease the cost in the industry. The plan of cost minimisation is to attain the mainly cost-effective means of distributing furniture to the necessary level amount of worth. There are quite a lot of advantages to minimising costs for the furniture suppliers. One of the chief benefits is that the business will perceptibly accumulate extra wealth but have inferior unit costs; one more benefit is superior revenue margin, superior operating profits plus better cash flow. On the other hand, problems might occur from cost minimisation for instance in case the purchasing department decreases cost, then it might infuriate other tasks of the company, and suppliers might be dissatisfied in addition to investors. The organisation may be left with an inadequate ability to handle sudden or fleeting increments in demand.

2. Quality maximisation: The furniture business has focused on the deliberations on expanding quality and reliably enhancing the standard of the furniture with a specific end goal to satisfy the needs of the clients. An illustration of how this capability may be exhibited by the business is by carefully surveying the business work for precision and completion and keeping up a desire to deliver the products on time. The furniture business takes after designated practices that have been demonstrated to guarantee precise, quality results. Earnestly and persistently searches for approaches to raise the quality of work. Recognises and addresses all points of interest that are required to guarantee smooth working. Consistently makes inquiries and observes how others work, receiving best practices to augment quality and efficacy. Quality maximisation also confirms assumptions and data by checking with dependable sources and specialists or through direct experiences. It builds processes to facilitate the delivery of excellent work. This picks up careful knowledge of "downstream" customer needs and attempts to guarantee they are met (Heizer and Render, 2008).

Improvement and maximisation of quality can be moderately prolonged and also costly for furniture production. This goes in opposition to cost minimisation and it turns into a complication for firms to decrease costs however in addition sustain and maximise superior quality. In case the furniture business is not competent to sustain these together, then it possibly will cause troubles plus they won’t be proficient to fulfil buyer demands. This might cause discontented buyers and the company might start to fail and also make losses. On the other hand, if the furniture business successfully is able to appraise and recognise issues, and improve the quality of furniture making sure the buyer demands are fulfilled in addition to controlling and decreasing costs of units then this can take them to grow sales and earnings speedily.

 

Evaluate the significance of five performance objectives that underpin operations management to the organisations

The fundamental five operational objectives include esteem for clients and competitiveness by having the capacity to fulfil the requirements of its clients. It uses key execution measures to match the desires of the client with the anticipated capability of the general business (Joseph, 2004).

1. Quality: Quality is a major thing and the basis of any producer and organisation. The quality composes the status of a business. This can be identified with the furniture as well as services supplied by the company or the quality of the products obtained yet clients dependably discuss quality! The business has to guarantee they give great quality furniture to clients with a specific end goal to meet their necessities and make them happy.

2. Speed: For some organisations citing a super quick manufacturing period is the main differentiator in what differentiates them from their rival. So as to convey this speed preference a furniture company has got to observe the internal value chain as a way to build proficiency and decrease the framework slack. Lean assembling has numerous tools and processes for recognising and diminishing wasted time in the process.

3. Dependability: It is vital that a business is able to keep promises made to customers; and stay true to their words. It is a vital factor that customers are happy and are able to trust the company. It ensures that the business does not suffer from extremes of process deviation. If the business model is predictable and the supply chain (as a part of the extended value chain) is reliable you can make bold statements to your customers and never let them down (Hruzova, 1999).

It is crucial that a furniture business has the capacity to fulfil its pledges to clients; and remain bound to their terms. It is a basic variable that clients are happy and have the capacity to trust the organisation. It guarantees that the business does not experience the ill effects of limits of process divergence. In case the business is able to predict, and the supply chain is dependable one might put forth striking expressions to the buyers and never let them down.

4. Flexibility: As far as new companies are starting, there are getting to be fewer and fewer quantity builders – all the more product is relied upon to be appropriately customised for the client. This acquaints complexity to a business system and obliges burden balancing systems to guarantee that all orders and clients' needs can be dealt with the identical elevated state of productivity. Regularly assembling a new furniture maker, the changing business requirement is less demanding than attempts to transform a current volume maker into an agile substance.

5. Costs: To make the merchandise for a stock replenishing system, in which volume production enables a balance between the economic batch size and the cost value point for every unit. The second strategy is further to attain a competitive edge by tailoring and personalisation – in which the likelihood of expanding the overall revenue would be adequate and permit the organisation to assimilate waste costs connected with minor batch manufacture.
 

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Task 2
 

Assess how linear programming adds value to a given production process.
 

Linear programming is a way to attain the optimum utilisation of the assets and resources of the firm. The decision maker can use linear programming to guarantee the effective utilisation of inadequate resources by the right use. The linear programming methods add value to the decision-making process. Linear programming offers a variety of different solutions and therefore aids in attaining the best possible solution at the operational level. It allows the changes to the previous models to match the needs of the decision-making process. This process helps the operations manager maintain the capacity of materials and machinery in a process. The decision maker is able to decide the way in which the right levels of the business objectives are achieved. Linear programming also enables the firm to manage even in changing situations and make quick decisions for execution (Galloway, Rowbotham, Azhashemi, 2005).

 

Evaluate critical path analysis and network planning

CPA is a preparation and project management tool. Although it can assist in guaranteeing a project is finished as rapidly as achievable, and assets utilised as resourcefully as achievable, it does rely on the correctness of the details utilised. Simply sketching a CPA won’t in itself guarantee a project operates to plan; the majority of projects come across a number of hindrances or something unanticipated, as a result, managers require the use of the instrument for instance CPA to scrutinise the process and acquire speedy accomplishment to resolve any issues.
 

A straightforward illustration – making a chair

 

Justify the operational need for operational planning and control in a selected production process.

The furniture manufacturers start out to carry out the fundamental task: to convert resources into finished goods. To carry out this task in the current business situation, manufacturers have to recurrently struggle to develop operational efficiency. They have got to polish up their production processes to centre on excellence, reduce the costs of materials and manual labour, and eradicate all costs that add no value to the furniture made. Creation of the decisions concerned in the attempt to accomplish these objectives is the task of the operations manager (Farrell, 2003). That individual’s tasks can be set as below:

1. Production planning: At some stage in production planning, managers settle on the way furniture will be created, the place where fabrication will occur, and the way of manufacturing amenities to be laid out.

2. Production control: On one occasion the production procedure is in progress, and managers have to repeatedly programme and keep an eye on the tasks that comprise that progression. They have to plead for and act in response to criticism and make modifications where essential. At this point, they supervise the buying of reserves and the management of stocks (Wild, 1995).

3. Quality control: At last, the operations manager is unswervingly caught up in attempts to make sure that furniture is made in accordance with requirements and that quality benchmarks are upheld.

 

Produce a set of clearly defined operational outcomes for a selected organisation

 

Statement of purpose

The initial phase in the strategic planning process is an appraisal of the business. Organisations rely on shoppers for their presence. In the event that you are confronting a rapidly developing consumer base, the business will most likely arrange uniquely in contrast to whether its customers are stable or contracting. On the off chance that one is fortunate enough to be in a business where brand loyalty still wins, one can take the risk that others can't stand to take. Before one starts to evaluate the business, it is vital to end a cautious appraisal of one's own business and its objectives. The result of this assessment of oneself process is known as the statement of purpose.

1. Defining of Business

A primary concern in defining a mission statement is addressing the question "What business are you in?" Answering this may seem fairly easy: however, it can be a complex task. Determining the nature of your business should not be strictly tied to the specific product or service you currently produce. Rather, it must be tied to the result of your output--your social function--and the competencies you have developed in producing that output (Stevenson, 2005).
An essential concern in characterising a statement of purpose is tending to the inquiry "What business one is in?" responding to this may appear to be genuinely simple: on the other hand, it can be a complex errand (Dilworth, 1992). Deciding the way of furniture making ought not to be strictly attached to the particular item or administration one right now delivers. Rather, it must be attached to the after-effect of the furniture made -its social capacity -and the capabilities it has created in making that furniture.

2. The Firm's Rationality

When one has characterised the statement of purpose, the following step is to characterise the company's fundamental rationality (Starr, 2004). Such an announcement will help clarify to the workers and partners how one might like to see the furniture business work. By what method will the business identify with customers, suppliers and competitors? What kind of group contribution does it get ready for the business, e.g., investment in recycling and volunteer activities? These inquiries and a lot more need clear responses to help the employees settle on operational decisions and act in a way predictable to business wishes.

 

3. The Firm's Goals

The next stride is to lay down obvious goals to lead and uphold the company on a course in harmony with its mission. The furniture business goals provide to:

• Give a good reason for or legitimise the furniture-making.

• Focus attention and lay down restrictions for employees.

• Recognise the character of the products to be made and product range.

• Decrease uncertainty by expounding what the business is doing.

• Supply as a criterion of evaluation for employees.

• Present a basis for organisation intent.

 

Produce a network plan indicating the resultant critical path

Here is a straightforward instance, in which a number of tasks are as per other tasks, while others are capable of being done separately.

 

Activity	Preceded by	Elapsed time (minutes)
A Ingredients	-	1
B Other resources	A	3
C Paint mixing time	B	60
D prepare the structure of the chair	-	1
E Angle fixing	-	10
F Nails utilisation	C&D	2
G Painting of chair	F	15
H drying of paint	E & G	40

 

In this instance, there is a comprehensible series of proceedings that need to take place in the correct order. If some of the events on the critical path are delayed, then the chair will not be prepared in a little while on the other hand, tasks D (prepare structure of chair) and E (angle fixing) can happen at some time provided that they are finished by the latest end time in the subsequent node.
Consequently, we can observe that the paint can be prepared before time 0, however, we can point out that it could be done anywhere before G because after that it won’t be of any use. There is a little ‘float’ on hand for tasks D and E as none of them is on the critical path.

This is a moderately straightforward case in point, and we can distinguish that the LST and LFT are identical in every node. In a further multifaceted CPA, this will not necessarily be the case (Everett et al. 1994), and in case it does, will be a sign of a little ‘float’ in at any rate one movement causing the node. On the other hand, nodes on the critical path will constantly include similar EST as well as LFT.

 

Justify how quality management techniques are applied to improve operations in a selected organisation

1. Statistical procedure control: Companies are able to employ a range of tools to recognise regions for improvement. A widespread way of manufacturing is known as statistical procedure control. This method checks manufacturing quality by testing a model of productivity to perceive if the furniture in the progression is being finished in accordance with pre-set requirements.

2. Benchmarking: Now and then it moreover assists in glancing externally at the business for designs on the way to develop operations and to find out the way the business contrasts to others. Businesses habitually employ benchmarking to judge their performance on numerous aspects with the presentation of other firms that do extremely well in furniture making.

3. International Quality Standards: It is a technique utilised to see which firm is able to attain the quality standards that meet the industry benchmarks. The application of quality standards like ISO 9000 and ISO 14000 ensures that businesses attain the utmost excellence in production.

 

Conclusion
 

In case the business exercises, along with others, too operations management understanding in that case there is an elevated likelihood of attaining its laid-down targets. It denotes the business will moreover arrive at soaring competitiveness and it will be competent to uphold it. It is likely for the business to get hold of even a superior competitive gain over other firms in case there has been put into practice to the arrangement of operational management.

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References

• Dilworth, J. B., (1992). Operations Management. Design, Planning, and Control for Manufacturing and Service.  McGraw-Hill, 1992.
• Everett, E. Adam, Jr. Ronald J. Ebert, (1994). Production and Operations Management, Prentice- Hall of India Private Limited, 5th Edition, 1994.
• Farrell, D., (2003). “The Real New Economy”. Harvard Business Review. October. pp. 105-112.
• Galloway, L., Rowbotham, F., Azhashemi, F., (2005). Operations Management in Context. Elsevier Butterworth- Heinemann.
• Heizer, J., Render, B., (2008). Operations Management. 9th Ed. New Jersey: Prentice-Hall
• Hrzová, H., (1999). Operations Management Syllabus. VŠE v Praze.
• Importance of operations management extracted on 18th Oct’2014 from The importance of sustainable operation management, 2014.
• Joseph, G., (2004). Theory and Problems of Operations Management, Tata McGraw-Hill Publishing Company Limited, 2nd Edition.
• Kumar, S.A., Suresh, N., (2008). Production and Operations Management, New Age International Publishers, 2nd Edition.
• Pannerselvam, R., (2004). Production and Operations Management, Prentice-Hall of India Private Limited, 9th print.