Introduction to Operation Management

This report provides an introduction to operation management, including input-transformation-output issues, reliance on specialized materials, role of logistics, ways to measure performance, customer requirements, and other factors affecting different sectors.

Introduction to
Operation
Management
Table of Contents

INTRODUCTION.......................................................................................................................................3
Sector specific input-transformation-output issues..................................................................................3
Reliance on specialized materials for delivery of products......................................................................4
Role of Logistics......................................................................................................................................4
Ways in which performance is measured.................................................................................................5
Requirements of customer.......................................................................................................................5
Other factors which are acceptable..........................................................................................................6
CONCLUSION...........................................................................................................................................6
REFERENCES............................................................................................................................................7
INTRODUCTION
Operation management refers to area of management which is related with designing as
well as process of production in manufacturing of services or goods (Anderson and et. al, 2018).

This involves planning, organization, supervision processes and mandatory changes for attaining
high profitability. This report is based on organizations which deal in different sector. They are
Aston Martin (manufacturing sector), Four Seasons Hotel London (service sector) and Marks &
Spencer (retail sector). These organizations carry out their operations in different sector and are
headquartered in United Kingdom. This assignment is based on comparison among these sectors
on the basis of input transformation output issues, delivery of services, role of logistics, and
measurement of efficiency, needs of customer and any other factor which these sectors need to
take into consideration.
Sector specific input-transformation-output issues
This deals with input output issues which are faced by organization while they are carrying out
their operations. Basically, it deals with process of conversion of raw material into products and while
carrying out this process, certain issues are faced by organizations. They are illustrated below:
Aston Martin: The major issue which was faced manufacturing sector was in supply chain. It was found
that Chinese subcontractors provided the parts were forged with plastic. This is the reason that they hardly
procure much in China. Another issue which is faced by them is that organizations are expanding
themselves in global market (Beckford, 2016). Therefore localization of existent products needs relevant
alterations in supply chain.
Four Seasons London: The major issue which is faced by this sector is that it becomes difficult to
identify what exactly customer needs as accommodation, food and Wi-Fi is provided by every hotel
present in UK. How to stand different from competitors is the major issue while working on something
and attaining the exact results. Consider an example like Four Seasons London has given discounts to
their premium customers but if they do not come then the output attained will be zero.
Marks & Spencer: The foremost issue faced by them (M&S) in supply chain is rapidly changing taste
and preferences of people with respect to specific product. This judgment is carried out worldwide is
majorly affected by customer’s process. Lack of innovation leads to providing same product to customers
for longer duration of time (Brown and Bessant, 2013).
Reliance on specialized materials for delivery of products
There are various products which are being used by them to render services and finished products
are specified below:

Aston Martin: It is a manufacturing industry which deals in automobile sector makes use of products
like steel, plastic, aluminum and rubber. These products are used to furnish final products and meet the
requirements of their customers (Drucker, 2012).
Four Seasons London: The major materials which are being used by them to render their services are
furniture where there customers can relax themselves like commercial laundry, fitness equipments,
maintenance supplies, kitchen supplies, food and beverage. They are some products which are used by
them to render effective services to their customers.
Marks & Spencer: Cotton is widely used as a natural fibre for manufacturing of different varieties of
clothing products. As per the studies, it has been observed that around 40% of global textile production is
made by cotton. M&S makes its use to design their products.
Role of Logistics
Within an organization either it’s manufacturing, service or retail industry, logistics plays an
important role in carrying out their operations. It basically deals with customer services, transportation,
packaging & storage, procurement of services & good, warehousing and inventory management.
Aston Martin: On August 11, 2015 they have proclaimed the opening of new logistics and warehouse.
This was done to render support to business to carry out future expansion. It is necessary to have adequate
number of inventories so that they can address needs of customers and maintaining their cost (Hillier,
2012).
Four Seasons London: Logistics assists them to make the movement of goods. It is done in such a way
that orders which are made by customers are fulfilled by Four Seasons London. It is one of the essential
roles with respect to ongoing activities with respect to warehouse.
Marks & Spencer: Warehousing acts as one of the major factor within M&S. By using this role or
function of logistics they manage their products until they are being sold. Effectiveness is entirely
dependent on decision associated with the same. It assists M&S to identify location of warehouse, their
number and size (Reid and Sanders, 2015).
Ways in which performance is measured
It can be measured by making use of different techniques with respect to each sector, they are
mentioned below:

Aston Martin: They need to have a SMART goal which illustrates specific measurable actionable
relevant timely goals. This assists them to address rationale of this sector (Ross, 2016). Apart from this
number of sales which have been made will also reflect performance of Aston Martin.
Four Seasons London: They need to have clear direction for this they need to have values, vision,
mission, and plan which will assist them to carry put their operations. It acts as a key to analyse
organizational performance.
Marks & Spencer: They need to identify what is required to enhance their performance for this they
measure outcomes or results which are gained by accomplishing their sales. If the required target is not
attained then alterations can be made.
Requirements of customer
Needs and wants of customers completely depend upon their taste as well as preferences.
Due to advancements in technology their desires are also changing rapidly so that they can move
with current scenario. In these three sectors, i.e. manufacturing, service and retail sector
functionality of organization is completely dependent on preferences of customers (Anderson
and et. al, 2018).
Aston Martin: Suppose if a sports car is manufactured by Aston Martin and is provided at very
high rate then or will be only useful for premium customers as a common man cannot afford this.
This creates a negative impact on number of sales, thereby leads to decline in profitability of
organization. This also illustrates that requirements of common man are not taken into consideration.
Four Seasons London: The services which are provided by Four Seasons are according to the market
and advancement in technology. They take into account what is needed by organization. They render
features like Wi-Fi which customers mostly expect. Consider an example like if the hotel has added a new
dish in their menu, like a Chinese dish but most of their customers are Indian. They would prefer to
specialties of UK rather than Chinese food. This means that needs of customers are not fulfilled.
Marks & Spencer: An organization is successful only if they are able to meet requirements of their
customers (Beckford, 2016). M&S deals in retail sector; they ensure that they are able to satisfy their
present as well as expected customers. Suppose, designing of clothes is done, but if it is not of latest trend
or fabric which is used by them is not according what customers needs then their customers will either
move towards their competitors. This signifies that requirements of people are not fulfilled.

Other factors which are acceptable
There are certain factors which create hindrance for different sectors within UK to carry out their
operations and functionalities. With respect to this political factors are described below as they are one of
the most crucial aspects which create strong impact on performance of different countries.
Aston Martin: They are undergoing enhanced global pressure due to World Trade Organizations
regulations associated with Auto & Truck manufacturer industry. They have benefitted from last two
years in western hemisphere due to low taxation policies (Brown and Bessant, 2013)
. Due to Brexit there will be transition in government and Aston Martin needs to be prepared for this
priorities of government will lead to alterations in Consumer Cyclical sector.
Four Seasons London: Local government plays critical role in formulation of policies and regulations in
service sector. For this, Four Seasons Hotel needs to monitor them carefully and execute alterations in
their working structure. As they are operating in different regulations and there is rapid growth in
technology, their operations have witnessed enhanced regulatory scrutiny.
Marks & Spencer: Due to Brexit there are relevant implications which are faced by retail sector like
alteration in taxation and government policies. Apart from this, due to the free trade policy there is the
reduction in sourcing costs. Higher cost structure has provided M&S drawback within international
markets (Drucker, 2012). Organization is widely known for their plan A CSR Initiative but due to lack
in clarity in energy efficiency of government, it has lead to negative impact on their initiatives.
CONCLUSION
From above report, it can be concluded that operation management plays an essential role to
furnish appropriate services to their customers. In this comparison between different sectors is made by
considering different aspects. It has been observed that major motive behind this is to accomplish the
requirements of customers which is their final motive. Each sector has their own requirements, role of
logistics, requirements of customers and issues faced by them while converting input into final products.
Apart from this, they need to measure their performance by which they can render effectual services to
their customers.
REFERENCES
Books &Journals

Anderson and et. al, 2018. An introduction to management science: quantitative approach.
Cengage learning.
Beckford, J., 2016. Quality: a critical introduction. Routledge.
Brown, S. and Bessant, J., 2013. Strategic operations management. Routledge.
Drucker, P., 2012. Management. Routledge.
Hillier, F. S., 2012. Introduction to operations research. Tata McGraw-Hill Education.
Reid, R. D. and Sanders, N. R., 2015. Operations Management, Binder Ready Version: An
Integrated Approach. John Wiley & Sons.
Ross, D. F., 2016. Introduction to e-supply chain management: engaging technology to build
market-winning business partnerships. CRC Press.