Challenges and Vital Theories in Operations Management

This article discusses the challenges faced by operations managers, including productivity, quality, customer satisfaction, technology, reporting, inter-department coordination, motivating employees, and hiring the right people. It also covers vital theories and principles such as Just in Time, Total Quality Management, Benchmarking, Six Sigma, and Simple Process Analysis Tools.

RUNNING HEAD: Strategic Management 0
Strategic Management
(Student Name)
11/20/2018
Table of Contents

Strategic Management 1
Introduction......................................................................................................................................2
Operation manager and their challenges..........................................................................................3
Operations Manager Job Description..........................................................................................4
Operations Managers Challenges................................................................................................4
VITAL THEORIES AND PRINCIPLES........................................................................................7
Conclusion.......................................................................................................................................9
References......................................................................................................................................11
Appendices....................................................................................................................................15
Role of Operation Manger.........................................................................................................15
Requirement of Operations Manager:...................................................................................15
Responsibilities of Operation Manager.................................................................................16

Strategic Management 2
Introduction
Operations management is the management of business practices to produce the highest level of
efficiency within an organization. It is concerned with converting resources and manual labor
into goods and services as efficiently as possible to capitalize on the profit of an organization
(Bromiley and Rau, 2016). Operations management team try to bring balance expenses with
revenue in such a manner that business achieves the highest net operating profit (Walker, Chicks
and Radnor and Watson, 2015). Operation management is carried out by a team which comprises
of operational managers which have their own team they coordinate within the team and across
the departments just to ensure that targets are met in stipulated time frame with efficient
utilization of resources (Anand and Gray, 2017).
Operation manager is one of the most renowned designations in an organization which helps the
business in the smooth running of the business in order to cater the needs to the customers and its
employees. It bridges the gap between top management and middle management (Bosworth,
2016). It involves overseeing the future in advance so that business can accommodate the
changes which are happening around them in a better manner as compared to not ready for a
change. It ensures that resources are utilized in such a manner that maximum output can be
derived from the minimum input which in turns means utilizing the resources in an optimum
manner (Buvik and Rolfsen, 2015). The role of the operation manager is not an easy piece of
cake as it seems from outside as huge responsibility is involved as a business is on a stake, its
goodwill and so on. In the recent scenario, the changing time has made the business environment
more competitive which make them a force to become more flexible as well as swiftly adopt the
change in technologies and work environments in the working place. In the changing paradigms

Strategic Management 3
of the business environment, there is a drastic need for the organization to identify those factors
and issues that would greatly affect the efficiency as well as productivity of the organization
(Baily, 2017). The business is constantly growing on a very large scale thus in the uncertainty
environment, the operational manager faces various kind of challenges in managing the
management of the company with managing the operational work, the manager also need to
manage the employees of the company and keep them feel motivated which is one of the tough
tasks for the manager that directly affected the productivity of the company (Hazen, et. al.,
2018).
There are few challenges associated with operation manager role which we will be discussing in
below points in addition to with certain theories and principles which helps operation manager in
overcoming the challenges and job description of operation manager.
Operation manager and their challenges
An operations manager has vast roles and responsibilities in an organization and it differs from
organization to organization industry to industry but overall or in general it includes monitoring
and analyzing the day to day work to ensure it is effective and all the work which are under
process is according to plan which has been shared in advance and if any variance act
immediately without a second thought as it could lead to major losses in terms of monitory and
non-monitory (Han, Gopalakrishnan and Lee, 2015).
By supervision in ongoing activities, analyzing figures and interpretation and script reports,
operations managers have a critical position in any business. Operations managers also have to
do multiple discussions with teams, as well as connecting with managers of diverse areas of the
association, presenting conclusion to owners and senior leadership as well as guidance and

Strategic Management 4
monitoring fresh staff and monitoring and measuring workforce performance (Claessens et. al.,
2015).
Job Description of Operations Manager
The job description of operation manager is wide and almost everything comes under his head as they
are the owners of the business which helps business to grow and prosper at a steady or faster pace.
Managing on the whole operations and it is accountable for flourishing and victorious management of
efficiency, superiority standards, security measures etc. It serves as a business spokesperson on
authoritarian issues (Wehrmeyer, 2017). Improve the operational process, systems, and ideology in
the areas of communication flow and organization, company processes, better administration exposure
and looks for opportunities to enlarge systems. Carry out managerial everyday jobs in harmony with
the organization’s policies and necessary laws (Omar, Nawawi and Puteh, 2016).
Everyday jobs may comprise taking the interview, selecting and hire; guiding fresh and current staff;
plan, assign and direct work; discuss performance appraisals with employees; address employee
performance and work on remedial action plans; Staff inspiration and plunder (Medina and Medina,
2014).
Operations Managers Challenges
 Productivity – It is one of the major challenges for the operation manager as productivity
plays a vital role in determining the profit margins. Operation manager feels pressure to
push employees to work faster and accurate and they need to maintain at a certain level
so that best output could be achieved. They have to ensure that each and every employee
have a certain amount of work by which they are not sitting ideal. They have to train

Strategic Management 5
every employee if required to enhance the skill set so that better results can be achieved
by skilled employees (Rangan, Chase and Karim, 2015).
 Quality – It plays a critical role in determining the success of the organization as if errors
or defects are less, lesser the efforts need to be made in correcting the same and resources
can be utilized efficiently. If the quality of the organization is good it can have an added
advantage from the competitors and can move ahead of the market trend and it gives
business first mover advantage (Healey, 2016).
 Customer satisfaction – It is one of the most crucial aspects or challenge for an
organization manager. It involves knowing the customers first and creating products and
services which are in need or in the requirement of the customers so that it can satisfy
their needs. The research team needs to identify the actual need of customers and
production department need to create the same and sales department need to sell the
products accordingly (Dupont and Eskerod, 2016).
 Technology - It is one of the challenges for the operation manager as we are seeing that
technology is improving day by day which is making the production more efficient and
more quality results can be seen. Managers need to identify the correct technology which
is required by the organization and able to utilize it well in the business so that its cost
can be recovered as soon as possible. The decision of identifying and acquiring the
correct technology plays a critical role in the business as it involves the cost associated
with it and able to utilize the same in a limited period (Haus et. al., 2016).
 Reporting – Reporting is a challenge for the operation managers as they need to manage
the day-to-day operations and get ready the reports in every aspect and report it out to
higher management and to the lower management. At times, they have to report to inter-

Strategic Management 6
department and in other departments so that correct coordination can be made. Before
publishing the reports manager has to cross check and ensure that reports are prepared
correctly, else profits can turn out to be the losses for an organization which can be a
risky situation for any business (Mehmood et. al., 2017).
 Inter-department coordination – Operation manager need to balance out the needs and
wants for every department and creation such good communication and coordination so
that aim or goal of the organization can be achieved timely and more efficiently. It is not
an easy task to manage the different departments as all departments have different roles
and responsibilities and targets which they have to fulfill and if any one of the department
is not doing great then operation manager have to coordinate amongst the department so
that smooth running of the business can be there (Zahra and Wright, 2016).
 Motivating Employees – employees are the main sources as well as keys for the success
of any organization. Every organization requires that their employees are dedicated to
their work to increase the productivity of the company. In the fluctuating as well as
competitive market, it would be tough for the operational manager to motivate their
employees at every level, which directly affected the productivity as well as the whole
performance of the company ((Tippmann, Scott and Mangematin, 2014).
 Right people for the right job – the business works in dynamic environment hence,
business has to have different skill set of employees, who fulfill the requirements of the
business and hiring, and placing the right person for the right job is one of the most
challenging jobs of the operation manager. They have to utilize every resource in an
efficient manner so that best results can be derived from. Operation manager needs to
motivate employees, training, educating, managing diversity, and cultural differences. A

Strategic Management 7
well-planned and well-executed hiring process will increase the chances for a positive
work experience leading to a win-win relationship between the new hire and organization
(Tippmann, Scott and Mangematin, 2014)
VITAL THEORIES AND PRINCIPLES
There are certain theories and principles that the business manager has to follow in terms of
gaining or overcoming the challenges stated above.
 Just in Time (JIT) – Just in time system is an administration strategy that is used for
creating goods and services as per the demand of the consumers so that better utilization
of resources can be there. It helps to reduce the duplicate work. Business use this stock
plan to boost efficiency and reduce misuse by getting goods only as they require them
for the manufacturing procedure, which diminishes stock expenses. This technique
requires producers to predict order precisely (Chyr and Huang, 2016).
 Total Quality Management (TQM) - TQM is one of the most vital theories and
philosophy process in improving the quality of the organization. It involves system,
public, and process successfully and professionally using funds to generate worth and get
better excellence (Prajogo, D.I. and McDermott, 2009). TQM is a viewpoint emphasize
three main beliefs to achieve high levels of performance and standard:
 Consumer satisfaction
 Employee participation
 Nonstop improvement in performance
Business implementing TQM must also focus on examining and manufactured goods design,
procedure design, application of problem-solving equipment, and using good purchasing strategy

Strategic Management 8
and benchmarking processes. Consumers must be pleased by having their prospect fulfilled by
business. For TQM to work efficiently in increasing excellence and performance all workforces
must develop into concerned and operations managers should do an outstanding job of serving
interior clientele if they anticipate pleasing exterior clientele. In terms of constant development
in applying TQM, a significant tool is the PDCA or Deming Cycle. PDCA signifies Plan, Do,
Check, and Act. Operations managers have to plan process, execute and supervise these actions,
examine data composed concerning these actions, and act accordingly (Obeidat et. al., 2016)
 Benchmarking – As the name suggests it is setting the minimum standards for the
quality and performance so that customers and stakeholders can accept certain outputs,
which would be achieved at any cost. In the benchmark, operations managers are
necessary to identify the opposition; both market privileged and market supporters
(market pouring and market-driven worth provider) and have to then expand an aim they
want to get to and a standard against which to evaluate their company’s achievement
(Kitchin, Lauriault and McArdle, 2015).
 Six Sigma - Six Sigma can be explained as an inclusive and elastic system to achieve,
sustain, and maximize big business success by reducing errors and unpredictability in
process. Six Sigma is a procedure, manufactured goods, or service with a tremendously
elevated potential [99.999% accuracy], and is typically distinct as in “defects per million”
or “dpm”. Six Sigma can be explained as a chart intended to decrease errors and
unpredictability in goods and services in an attempt to lesser manufacture or operations
expenses, put away time, and get better client pleasure. Six Sigma is a plan because it
aims at total consumer happiness; a regulation since it follows the official Six Sigma
development Model or DMAIC process; and a set of tools used to manage excellence

Strategic Management 9
process. DMAIC defines for Define, Measure, Improve, Analyse, and Control, and
represent the five measure process development representation functional in Six Sigma
(Jacobs, Swink and Linderman, 2015).
 Simple Process Analysis Tools - There are numerous simple process investigation tools
that operations managers and stakeholders can utilize to assess and supervise process
used to produce value or merchandise and services. Operations managers have to learn
how productively apply the methods such as Pareto charts, scatter diagrams, and cause-
and-effect diagrams and statistical process control (SPC) tools in influential where
improvements to their worth making process are desirable to get better excellence and
presentation. These methods can assist operations managers to conclude procedure
potential or the ability of a process to meet the design provision for output or goods and
services. Statistical process control (SPC) is simply the submission of statistical methods
to make a decision whether a process is delivering what customers want and that mainly
uses a technique known as organizing chart “to sense faulty services or manufactured
goods or to point out that the process has tainted. The services or goods will diverge on or
after their plan stipulation unless impressive is complete to accurate the condition.
Conclusion
Operations management is organized, purposeful paying attention and provide a diversity of
technique backed by sound decision-making practice and main beliefs of efficiency and
competence that can considerably influence business actions, routine, aggressive gain,
achievement, and endurance. It is consequently vital for managers to gain some substantial
sympathetic of operations managing and apply those thoughts that symbolize worth increasing
chances for their trade in an attempt to generate predictable big brand from side to side

Strategic Management 10
excellence and enlarged goods and services. Operations management is the efficient and well-
organized harmonization of business and business variables into a unified flow of contribution
actions and process that generate worth for business and clientele. In the competitive
environment, the operational manager feels more pressurize to manage the operational work in
an effective way. The uncertainty in the competitive world, as well as a change in the
technologies, increases the challenge for the operations manager to manage and enhance the
productivity of the company. There are certain challenges faced by the operational manager to
while managing the work of the company such as the pressure of increased productivity with
quality, satisfying the need of customers, the adoption of changing in the technologies, manage
coordination between the inter-department, motivating the employees towards the work and so
on. These challenges need to be resolved to increase the efficiency of the company. There are
certain theories such as six sigma, benchmarking, Just-in-time, and so on that are highly
recommended to adapt to cope up from the challenges faced by the operational manager. These
theories would help the operational manager to satisfy the consumer as well as employees, which
directly affected the performance of the whole organization. In this way, operations management
or Operational Managers can be seen as a system focused methodical and balanced approach to
worth formation or manufacture.

Strategic Management 11
References
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management. Journal of Operations Management, 53, pp.1-8.
Baily, P. (2017) Procurement. In Contracting for Project Management . London: Routledge.
Bosworth, K.A. (2016) The manager is a politician. In Local Government Management: Current
Issues and Best Practices. London: Routledge.
Bromiley, P. and Rau, D. (2016) Operations management and the resource based view: Another
view. Journal of Operations Management, 41, pp.95-106.
Buvik, M.P. and Rolfsen, M. (2015) Prior ties and trust development in project teams–A case
study from the construction industry. International Journal of Project Management, 33(7),
pp.1484-1494.
Chyr, F.C. and Huang, S.Y. (2016) The Maximum Setup Time and Setup Cost of Achieving
Just-in-Time System. Journal of Business Theory and Practice, 4(1), p.75.
Claessens, I., Probert, R., Tielemans, C., Steen, A., Nilsson, C., Andersen, B.D. and Storling,
Z.M., (2015) The Ostomy Life Study: the everyday challenges faced by people living with a
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Dupont, D.H. and Eskerod, P. (2016) Enhancing project benefit realization through integration of
line managers as project benefit managers. International Journal of Project Management, 34(4),
pp.779-788

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Han, B., Gopalakrishnan, V., Ji, L. and Lee, S. (2015) Network function virtualization:
Challenges and opportunities for innovations. IEEE Communications Magazine, 53(2), pp.90-97.
Haus, M., Adler, C., Hagl, M., Maragkos, M. and Duschek, S. (2016) Stress and stress
management in European crisis managers. International Journal of Emergency Services, 5(1),
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Hazen, B.T., Skipper, J.B., Boone, C.A. and Hill, R.R. (2018) Back in business: Operations
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Operations Research, 270(1-2), pp.201-211.
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experience” of in-country senior managers. Journal of Studies in International Education, 20(1),
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Jacobs, B.W., Swink, M. and Linderman, K. (2015) Performance effects of early and late Six
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Kitchin, R., Lauriault, T.P. and McArdle, G. (2015) Knowing and governing cities through urban
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competence goal. International Journal of Project Management, 32(8), pp.1459-147

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Mehmood, R., Meriton, R., Graham, G., Hennelly, P. and Kumar, M. (2017) Exploring the
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Appendices
Role of Operation Manager
An operation manager plays a prominent role in managing the team as well as oversees high-
level HR duties, which include attracting talent and setting the standards for training as well as
hiring procedures. Moreover, they also analyze and enhance the process of organization that
helps in to improve the quality, productivity, and efficiency. They manage overall operations, as
well as the manager, is accountable for the efficiency and victorious administration of labor,
excellence control, productivity and security events which are recognized in the organization and
set for the operations department.
The requirement of Operations Manager:
 The degree of bachelor in operation management or related field
 Excellent communication skill
 Ability to build the consensus as well as build relationships among managers, employees,
and partners
 Strong understanding of financial management
 Understanding of general finance and budgeting with including profit and loss, cash-flow
management, and balance sheet.

Strategic Management 16
 Experience in management, leadership, and operations
Responsibilities of Operation Manager
 Planning and reviewing the actions of compensation with enforcing the policies and
procedures.
 Contributing and managing operations in order and provide a recommendation to tactical
plan and review, organize and compete act tactics, employ manufacture, efficiency,
excellence, and client service principles, determine problems, entire audit, recognize the trend
 Predict the requirements in the organization, then prepare an annual budget accordingly,
schedule the expenses, analyze variances, at the end imitating corrective actions
 Maintain and deliver a safe and healthy environment in the organization by establishing,
following and enforcing the standards by complying with the legal regulations.
 Manage and maintain the relationships with key operations vendors
 Work with the inventory manager and team to analyze the inventory and ensure proper
utilization of inventory in an effective way, purchase the correct tools, maintain solid
stock data and decrease sub-rental operating cost.