Challenges and Key Processes in Business Operations Management

This report discusses the challenges faced by Ovation System Ltd in business operations management and evaluates the key processes utilized within the delivery of services. It provides an overview of the organization, analysis of challenges, and identification of continuous improvement framework.

Business Operations
Management

Table of Contents
Introduction......................................................................................................................................1
Overview of organisation............................................................................................................1
Gantt Chart..................................................................................................................................2
Analysis of challenges faced by firm..........................................................................................2
Evaluation of key processes utilised within delivery of services................................................5
Identification continuous improvement framework....................................................................6
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

Introduction
The area of management that is associated with controlling as well as designing of
processes related with production as well as redesigning of activities for production of services
or goods is referred to as operation management (Bharara, Sabitha and Bansal, 2017). Firms
emphasise on making sure that operations are carried out in efficient manner with respect to
usage of resources that are required for meeting requirements of customer. They are involved
within formulation of plans, there organisation along with supervision of activities that are being
carried out. This report is based on Ovation System Ltd which are specialised within designing
as well as manufacturing of rugged higher performance of surveillance products for military,
police as well as governmental law enforcement agencies. They are based in United Kingdom.
This report comprises of overview of firm, challenges faced by firm, analysis of key processes
utilised within production along with identification of quality improvements.
Overview of organisation
Ovation System Ltd was founded on 19th March, 1987 and deals within manufacturing of
electronic components. They are specialised within developing designs and manufacturing
rugged surveillance products which involves video encryption and scrambling systems for
protecting convert wireless links from any kind of interceptions (Bromiley and Rau, 2016).
There products comprises of digital video recorders, equipments, surveillance systems and delay
lines. An instance can be taken into consideration to understand the quality of services being
delivered by Ovation System Ltd, Micro-Viewlock II is ultra compact version which furnishes
video encryption system. It possess smaller dimensions as well as have lower DC power
consumption which is apt for highly covert applications like merging within third party video
surveillance tools or body worn installations.
The key strength of firm is designing as well as development of their own product range
and enhanced technical support for responding to requests made by users (Ovation System Ltd,
2020). The rationale of Ovation System Ltd is to furnish products which will impress as well as
accomplish requirements of their customers. There vision is to bring in continuous advancements
within technology for different industries along with their implementation within security as well
as surveillance industry. Ovation System Ltd designs as well as manufacture their products
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within UK but are delivered to different law enforcement agencies around the world (Ovation
Systems Limited, 2020).
Scope: As technology is evolving, there is wider scope for development as Ovation
System Ltd can make use use them for developing products as well as they can bring in new
there own technologies for making sure that they meets the altering needs of the society (Busing
and Palocsay, 2016). Along with this, illegal practices like thefts whether online or offline are
also increasing therefore, appropriate measures can be formulated by them (as they are involved
within manufacturing of these products) through which the rate of such activities might be
declined.
Gantt Chart
The graphical tool that is liable for showing tasks or activities that are being carried out
against specified time is referred to as Gantt Chart. This is also referred to as visual
representation of projects in which activities are broken as well as displayed on chart which
makes this easy to acknowledge as well as interpret the information depicted in this (Chikán and
Sprague, 2019). Within Ovation System Ltd, Gantt chart will act like a popular tool which can
be utilised for drilling down the activities which must be carried out within stipulated time period
and is also utilised within tracking the schedules related with project.
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The tasks shown within the chart are illustrated on vertical axis and horizontal axis
illustrates scheduling of time for respective task which is being carried out by individuals. Along
with this, bar will illustrate the percentage of task which has been accomplished along with
dependencies. In this context, dependencies illustrate the linkage among different activities
which have to be carried out within the project (Copacino, 2019). This will aid manager of
Ovation System Ltd to plan, schedule as well as inform management about the additional
resources that are required for carrying out specified activities. In this report, Microsoft Project
have been utilised for development of Gantt Chart.
Analysis of challenges faced by firm.
While carrying out the operations in an appropriate manner, firms have to plan, organise,
supervise as well as make effectual improvements through which higher profitability can be
attained. The alterations has to be made in such a way that the strategic goals of firm can be
supported for this, it is necessary to carry out deep analysis as well as measure their current
processes (Gill, 2017). While manufacturing there products, certain challenges are being faced
by Ovation System Ltd and they have been illustrated below through the assistance of 7 wastes
of lean management framework:
7 wastes of lean management framework: Elimination wasteful activities is important
for success of each organisation as wastage leads to decline within profitability,enhancement
within customer cost, declines in quality and will also provide satisfaction to employees. For
this, it is crucial for Ovation System Ltd to determine the non-value adding activities as well as
improvise the processes. Lean manufacturing refers to the process in which emphasis is laid on
minimisation of waste in manufacturing systems which will lead to enhancement within
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productivity. Certain challenges with respect to Ovation System Ltd have been illustrated
beneath through usage of this framework: Overproduction:This implies that products are manufactured in greater quantity even
before they are being required which leads to excessive inventory. This is the worst factor
which obscure other problems in processes carried out by Ovation System Ltd. For this
firm is making use of Just in time approach as this will lead them to manufacture
products when they are needed (Hill and Hill, 2017). The reason behind this is that, it will
drive in different other problems with it. An instance can be taken into consideration like
if in video surveillance equipment nay defect occurs then the cost associated with single
device will huge as compared to when they are being manufactured in bulk. Waiting:It implies goods are being processed or they are not moving and this can be
recognised easily. The reason behind this is that, the time which has been wasted is
identified quickly (Hitt, Xu and Carnes, 2016). For an instance, within Ovation System
Ltd product is being waiting for delivery or document is waiting for having approval
from top executives.
 Transportation: When resources are moved and this movement do not render any value
to organisation, then it is denoted by transportation wastage. When the resources are
moved excessively, this will add up cost of organisation as well as hamper the quality o0f
products which are being delivered. This will lead Ovation System Ltd to make
additional payments with respect to time, machinery and space.
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(Source: 7 Wastes of Lean: How to optimise resources, 2020) Over-processing:It is also illustrated by the term using sledgehammer for cracking a nut.
An instance can be taken to understand this aspect, Ovation System Ltd makes use of
expensive equipments for delivering their products but same can be carried out by
making use of simple tools (7 Wastes. 2020). With respect to this, they need to inspire
higher asset utilisation for recovering the cost associated with the equipment. It will lead
to increase within the price of end product for which customers may not be willing to pay
for. Inventory: Work in progress acts as a direct outcome of waiting and overproduction. For
meeting such kind of requirements, Ovation System Ltd opts for just in case inventories
in which they overstock them for accomplishing unexpected demands, low quality,
protection from delays within production or any other problems which are being created.
But they often do not add value (Karlsson, 2016). An instance can be taken into
consideration like technology is evolving and Ovation System Ltd deals with
surveillance products so it won't be useful in bulk as appropriate emendation have to be
made with respect to attacks which are being carried out with respect to security.
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Illustration 1: 7 Wastes of Lean

 Motion:This comprises of movements of machinery or employees that is unnecessary
and complicated. It may include lifting, reaching, walking, stretching and bending which
might lead to injuries or may also extend production time and other aspects associated
with this. In this context, management of Ovation System Ltd needs to identify, analyse
as well as redesign the system for enhancement of operations that have to be carried out.
 Defects: It denotes the instances in which services or products deviate from what are the
specifications or what there customers are looking forward for. With respect to Ovation
System Ltd, it is crucial to eliminate any kind of defects as there products have to be
utilised within security services (Machado and et. al, 2017). For this, Ovation System Ltd
make use of Jidoka (machines which possess human intelligence and have the capability
for detecting non-standard events which might occur) or autonomation.
7 wastes have been illustrated and it is important for Ovation System Ltd to deal with
them in an effectual manner so that overall performance of firm can be enhanced. Firm can make
use of Key performance indicators which will measure value for illustrating effectiveness of firm
in terms of attainment of their goals. In context of Ovation System Ltd, there KPI is to have
enhanced quality by 20% by the end of this year.
Evaluation of key processes utilised within delivery of services.
Different activities are involved when converting a raw material into a final product.
Along with this, it has to be ensured that all of them are carried out in an appropriate manner so
that end product which will be attained will meet needs of consumer (Meredith and Pilkington,
2018). For this, Ovation System Ltd can opt for making use of professional mapping process. It
is a management tool which will assist within description of flow of the work in terms of how it
has to be carried out. This involves series of events which have to be utilised for production of
end outcome. As Ovation System Ltd is manufacturing firm that manufacture electronic
products, its professional mapping process have been illustrated below along with description of
each stage involved within this:
Raw materials: The firm is liable for gathering raw materials which is being required fro
development of product. It is important that the suppliers who are supplying Ovation System Ltd
with the material must furnish high quality services so that quality of end product can also be
maintained (Reid and Sanders, 2019). Along with this, cost associated with development of
product will also be taken into consideration so that cost do not exceed what is being decided. In
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this case, RFQ (Request for quote) can be utilised by Ovation System Ltd for having
competitive bidding. The pro of this stage is that, quality can be ensured of material which has to
be used. But cons is that if cost will be seen then there will be impact on quality of the material
which has to be utilised for furnishing of end product.
Manufacturing production:Within this stage, market will be developed for building of
awareness for product. In this, CAD drawings can be utilised for specifications and ensure that
are complete for carrying out the manufacturing of product. Ovation System Ltd needs to ensure
that there product is renders higher levels of quality as well as reliability as they have to be
utilised for security purposes. The pro of this stage is that designs can be formulated as per the
requirements through simulation and accordingly components can be utilised (Ricky, GRIFFIN
and MIKE, 2019). Its con is that if it is not done in an appropriate manner then lots of time and
money will be needed to identify where the problem is.
Product delivery: After product manufactured, it has to be tested as well as certified with
respect to regulatory standards. Furthermore, test procedures can be carried out for ensuring
quality control plans and can be tested as per the prototype. After this has been carried out,
products will be delivered to customers by carrying out further manufacturing (Slack, 2018). The
pro of this is that if any error exit then it can be identified at this stage only and further
production can be stopped. The con is that significant amount of time is invested in this as
manufacturing team has wait for quality test.
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Disposal recycling: All products will become obsolete after certain time frame and
production has to be stopped. This has to be carried out in an effective manner for avoiding
excess of wastage of raw material which might be used for some effective operations by
appropriate planning (Bharara, Sabitha and Bansal, 2017). The pro of this is that the spare parts
left can be utilised by Ovation Systems Ltd to support their customers within maintenance
activities. The con is it may lead to wastage if lots of material is being left.
Identification continuous improvement framework.
Continuous improvement framework provide formative assistance to Ovation Systems Ltd as to
frame a set of agreed principles in order to further provide support to procurement of services
and finance in order to effectively improve effectiveness and quality of system (Bromiley and
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Illustration 2: Professional Process Mapping For
Manufacturing Process

Rau, 2016). Continuous improvement is also termed as continual improvement as in this ongoing
improvement of processes, products and services is being done via breakthrough improvements
and incremental. With the help of this method organisation can make significant improvement in
quality of to deliver products and services in order to effectively provide formative satisfaction to
customers in well defined manner. Mentioned below the plan-do-check-act (PDCA) cycle is
being defined which is mainly a continuous process improvement model:
This model mainly include four-stage with the help of which organisation can effectively
able to make improvement in their business process management (Busing and Palocsay, 2016).
PDCA model is also termed as Deming circle/cycle/wheel, Shewhart cycle, plan–do–study–act
(PDSA) or control circle/cycle. Mentioned below all the stages of this model is being effectively
defined in context with Ovation Systems Ltd in order to increase efficiency of their product and
service delivery:
Plan: In this the first and foremost step of manager of Ovation Systems Ltd is to
effectively identify and understand the main issue and problem. In addition to this, they are also
required to identify the opportunities as to take advantage in their product and service delivery
process (Chikán and Sprague, 2019). In this company manager can take use of introductory steps
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Illustration 3: Plan-do-check-act cycle

of the simplex process. With the help of this they can gather necessary data and information and
can further define, generate and screen their ideas and can further develop implementation plan.
Do: Once potential solution is being identified by manager of Ovation Systems Ltd the
next stage which is required to be consider is to test it with small-scale pilot project. With the
assistance of this manager can effectively able to asses whether their proposed changes fulfil
desired set of objectives. In this Ovation Systems Ltd manager can organize a trial in a particular
department as to try out their set plans. With the help of this company manager can make sure
that they formulated plan can accomplish their desired objectives.
Check: At this stage manager of Ovation Systems Ltd is required to analyse their pilot
projects end outcomes against their expectation that has been defined by them in Step 1
(Copacino, 2019). With the help of this they can able to assess that their idea has worked or not
and if does not worked as per expectations them they return to Step 1. In this manager is required
to do not get settle for less-than-satisfactory solution. As with the help of this, they can
effectively able to increase efficiency of their end outcomes in well defined manner.
Act: At this stage Ovation Systems Ltd manager is required to implement their solutions.
In addition to this, it has been identified that manager of company is required to effectively
document the results and further provide information to other related to process changes (Gill,
2017). In addition to this, they also hold the responsibility to undertake recommendation for the
issue which is required to be addressed in next PDCA cycle.
Conclusion
From above it can be concluded that, business operation management refers to
administration of business practices for creation of higher levels of effectiveness in organisation.
It is associated with conversion of materials as well as labour within services and goods in an
efficient manner through which profits of organisation can be enhanced. In this report, emphasis
is laid on challenges faced by organisation and ways in which they can be eliminated. Along
with this there are certain key processes that are involved within production and they are
collection of raw material, its processing, delivery and disposal. Along with this, PDCA has been
illustrate which will aid organisation in attaining continuous improvement of processes which are
being carried out by them.
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References
Books & Journals
Bharara, S., Sabitha, A.S. and Bansal, A., 2017, January. A review on knowledge extraction for
business operations using data mining. In 2017 7th International Conference on Cloud
Computing, Data Science & Engineering-Confluence (pp. 512-518). IEEE.
Bromiley, P. and Rau, D., 2016. Operations management and the resource based view: Another
view. Journal of Operations Management, 41, pp.95-106.
Busing, M.E. and Palocsay, S.W., 2016. Operations management in the design and execution of
MBA programs. Journal of Education for Business, 91(2), pp.75-82.
Chikán, A. and Sprague, L.G., 2019. A life cycle model of major innovations in operations
management. International Journal of Quality Innovation, 5(1), p.5.
Copacino, W.C., 2019. Supply chain management: The basics and beyond. Routledge.
Gill, A., 2017. Green sustainable operations: a case from service industry. International Journal
of Services and Operations Management, 26(4), pp.411-427.
Hill, A. and Hill, T., 2017. Essential operations management. Macmillan International Higher
Education.
Hitt, M.A., Xu, K. and Carnes, C.M., 2016. Resource based theory in operations management
research. Journal of Operations Management, 41, pp.77-94.
Karlsson, C. ed., 2016. Research methods for operations management. Routledge.
Machado, C.G. and et. al, 2017. Framing maturity based on sustainable operations management
principles. International Journal of Production Economics, 190, pp.3-21.
Meredith, J.R. and Pilkington, A., 2018. Assessing the exchange of knowledge between
operations management and other fields: Some challenges and opportunities. Journal of
Operations Management, 60, pp.47-53.
Reid, R.D. and Sanders, N.R., 2019. Operations management: an integrated approach. John
Wiley & Sons.
Ricky, W., GRIFFIN, P. and MIKE, W., 2019. International business: A managerial perspective.
Pearson.
Slack, N., 2018. Essentials of operations management. Pearson UK.
Online
Ovation System Ltd. 2020. [Online]. Available
through:<https://www.adsgroup.org.uk/members/ovation-systems-ltd/>.
Ovation Systems Limited. 2020. [Online]. Available through: <https://www.ovation.co.uk/about-
us/police>.
7 Wastes. 2020. [Online]. Available through: <https://leanmanufacturingtools.org/7-wastes/>,
7 Wastes of Lean: How to optimise resources. 2020. [Online]. Available through:
<https://kanbanize.com/lean-management/value-waste/7-wastes-of-lean/>.
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