Importance of Operations Management

The provided assignment delves into the importance of operations management within an organization. It emphasizes that managers' decisions have a substantial impact on various aspects of the organization. The assignment also touches upon social influences that can become obstacles in firm growth and profitability, and how leaders play a vital role in motivating team members to complete tasks effectively.

MANAGEMENT AND
OPERATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 2 ...........................................................................................................................................1
2.1 Key points to operations management and the role of leaders and managers in success of
organisation............................................................................................................................1
2.2 Explain the significance and value of operations management in accomplishing business
objectives................................................................................................................................3
2.3 Carry out the way in which leaders and managers of organisation can improve operational
management to attain desired objectives................................................................................4
TASK 3............................................................................................................................................4
3.1 Outline main factors within the environment in which organisation operates which has
impact upon decisions made by managers and leaders and to operations department...........4
3.2 Analyse how different factors affect the organisation......................................................5
3.3 Make Critical analysis of application of operations management and factors which impact
an organisation........................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The operation department plays a vital role in determining the objectives of the firm. The
process of manufacturing and to distribution is accompanied by operation's department. It has to
carry out in a manner that will increase organisation effectiveness (Heizer, 2016). This report
deals with Starbucks firm which manges its operations team in the manner which saves valuable
time in allocation of different tasks and which provides instant consumer satisfaction.
Consumers are provided with services which are fully optimised by the team management.
Leadership influences and management also make informed decisions regarding it in proficient
manner. This enhances consumer satisfaction in the best possible way.
TASK 2
2.1 Key points to operations management and the role of leaders and managers in success of
organisation
Operations management is an important aspect in organisation. It improves the quality of
the operation's department by clearly stating errors and defects observed in the organisation. The
firm has its resources which are provided by human resource department. They play wider role
in accomplishing firm's objectives in effective manner. Role of leaders and managers are vital
for organisations like Starbucks as it completely relies on its managers and leaders. They guide
according their skills and abilities and in return provide efficiency in achieving tasks of the
organisation. The key approaches to operations management and role of leaders and managers
are as follows:
1. Six Sigma Theory-
It is a vital theory as it plays the role of detecting and eliminating the errors from the
department and helps to attain required quality standards. It has been improved in recent and is
increasing so that no quality standards are violated. It helps organisation to save time and helps
to reduce cost in efficient manner. It is primarily used in manufacturing organisation (Slack,
2015). Further, six sigma techniques are used to enhance the quality right from its production to
its final consumption to its customers. It involves six deviations which go through quality check
and customers enjoy quality services in return of price paid to organisation.
2. Queuing Theory-

Queuing theory is a theory which deals with waiting lines at production centre and how it
can properly be stated to reduce the time for production process and save valuable time for
further production process. Example, raw materials waiting for service, patient waiting for his
turn in doctor's clinic to get medical help, machines waiting for drilling, polishing on the
production process and many more.
3. Lean Production Theory-
It has the main usage to reduce the wastage of resources and minimise the errors in the
production process without harming or compromising the productivity. Starbucks company
usually maintains it productivity without wastage of resources. The organisation is required to
meet quality standards to maximise its customers base and as a result customer satisfaction is
increased (Zurich, 2017). Consumers become loyal to the brand as it is seen and observed in
Starbucks firm. They constantly try to meet customers’ requirements and also hear and react to
the complaints which helps them to flourish their brand image, brand name and its reputation in
market.
4. Total Quality Management-
The role of managers is to ensure that products are delivered to its regular customers in
accordance to standard quality by eliminating the quality errors which hinders and affect quality
of coffee to its customers. It means managers provide his team the required quality standards
which enhances customers satisfaction and provide full quality services to them which is key
function of organisation in accomplishing its goals in effectual manner.
5. Business Process Redesign (BPR)-
This is an important process in the organisation. It completely examines company's
effectiveness and efficiency in very critical processes (Akkerman, Farahani and Grunow, 2010).
The business process redesign effectively organises work in that manner which enhances its
productivity and in turn gives or provides fast and quality services to its customers in effective
way which will help in gaining more profits and its dignity and brand name can be multiplied. It
is the delivery of the services by the company like Starbucks which delivers the highest quality
of coffee in most productive way which enhances the organisation's credibility.

2.2 Explain the significance and value of operations management in accomplishing business
objectives
The manufacturing industry was believed to be the only industry which has used its part
in organisation. But now, this has been changed. Now, every sector uses its principles in
efficient way which enhances their goods and services. Importance of operations management is
as follows:
1. For service industry-
Service industry like Starbucks effectively uses the operation management in their firm.
In it, several processes are involved starting from understanding of consumers needs and
demands to fulfilling it (Subramanian and Ramanathan, 2012). It also involves valuable
feedback from customers so that certain modification in organisation services can be done so
that customer's loyalty can be maximised in positive way.
2. Fulfilling demands-
Demands and need of customers should be fulfilled by the organisation which is the
responsibility of the operation's department. By fulfilling demands and needs of consumers, firm
will achieve brand image in front of the consumers. As such, maintaining quality is complex task
to accomplish by operation's department. Needs of consumers are achieved by listening to their
complaints and by resolving them to full extent which provides them with trust towards the
brand. This should be done in efficient manner so that it does not hinder in organisation growth.
By fulfilling desires of consumers, firm can gain competitive edge over its rivals.
3. Directing team members-
Team members in operations department should be directed in that way which enables
them to deliver quality services to its consumers. Starbucks firm directs its team members of
operations department in efficient way which strictly focus on delivering quality services to their
customers (Importance of operations management, 2016). This ensure that work is divided and
assigned to members which will eliminate duplication of work and work will be done and
accomplished at allotted time which makes firm effective in its delivering services.

2.3 Carry out the way in which leaders and managers of organisation can improve operational
management to attain desired objectives
Leaders and managers provide the organisation in effective way which conquers their
responsibilities by satisfying customers and helping firm to gain more revenue and enhanced
customer base in better and efficient way (Gunasekaran and Ngai, 2012). Organisation may have
competitive edge and advantage over its competitors which enhances their brand image and
name in the market. Managers provide strategic vision and aim to the organisation by carefully
analysing the needs and demands of the consumes in the market
After conducting marketing research, firm is able to make certain development sin their
products which enhances it s customers in better and efficient way. Thin fulfils organisation's
objectives which is possible only because of the guidance provided by it managers. Leaders on
the other hand motivates their team workers which is required so that they may be able to do
work efficiently in aligned manner which has been allocated to them by the department of
operations. By complying with such tactics, organisation can achieve their task accomplishment
in proficient manner.
The leader can try to enhance teamwork by achieving cooperation of the members in its
department. When cooperation is achieved in the best possible way, then its builds trust between
the fellow members (Naor, Linderman and Schroeder, 2010). The members build trust in them
so that organisation's resource are fully optimised by its members in completing their allocate
task. This will ensurer that firm is able to achieve members cooperation and at the same time, it
accomplishes its desired objectives in effective way. The organisation will be able to attain its
objectives so that it builds core trust in the consumer through speedy delivering of services so
that sales can be maximised to great extent.
TASK 3
3.1 Outline main factors within the environment in which organisation operates which has
impact upon decisions made by managers and leaders and to operations department
The factors which influence decisions making by operation department are numerous
which affects the organisation in the business environment. The following points are as follows-
1. Information availability:

Information should be made available to all the users of it i.e. the members working in
coordination with the managers. Managers provide information to its members in effective way
which does not initiate lack of it. Information is the main factor which affects the decision
making process made by managers.
2. Constraint in thoughts:
The members should be innovative in thinking and should commemorate different
thoughts and perceptions which make organisation effective in their quality of services to its
customers. Starbucks firm hire those individuals which have the capacity to think beyond the
obvious so that organisation can gain something more extraordinary than other firms. This helps
them to make them efficient in their accomplishment of goals (Barratt, Choi and Li, 2011).
Outline main factors within the environment in which organisation operates which has impact
upon decisions made by managers and leaders and to operations departments and desired
consumer satisfaction.
3. Risk and Uncertainty perspectives:
This is another factor which influences decisions made by managers and leaders. Leader
motivates and directs their team members about taking risk in particular work. They do not
behave properly and do not accept new challenges. This impacts operations department and
decisions by managers. They behave unprofessional and do not correlate with the management
and which becomes hurdle in attaining organisation's objectives.
4. Social influences:
Social influences are another factors which affect the organisation's operations
department. Managers in order to divide and accomplish tasks, manage to allocate it to similar
groups so that work is completed in effective manner which helps organisation productivity to
flourish (Yang, Hong and Modi, 2011). However, social norms and groups resist to the decisions
made by mangers which automatically reduces organisation effectiveness which a company may
not like to develop in the particular time.
3.2 Analyse how different factors affect the organisation
The different factors which affects the organisation are numerous as it provides impact
on decision-making of managers in particular organisation. The factors are as follows:
1. Social influence-

The organisation provides employment to society. This is the responsibility of the
workers to accomplish the set targets initiated by the firm (Peng and Lai, 2012). This however,
does not look great. Members gets engaged in social groups which take away the members from
the organisational goals and aims. This affects organisation in their day to day operations.
2. Time constraints-
Time constraints are another thing which affects organisation productivity. Since, time is
limited and works needs to be completed in timely manner so that no wastage of resources is
observed by the organisation. This makes organisation more goal oriented and more focussed on
its efficiency in delivering services to its customers (Galindo and Batta, 2013). However,
workers do not obey time limitations and constraints which affect the organisation in negative
way. This makes organisation inefficient towards accomplishment of goals. This also
deteriorates the revenue generation from the customers and also affect firm's policies and affects
consumer satisfaction which an organisation like Starbucks would never like to implement
which hinders its growth.
3.3 Make Critical analysis of application of operations management and factors which impact an
organisation
Operations department in an organisation focusses on producing and distributing
products and services to consumers in effective manner which enhances organisation's
credibility and reputation in front of prospective consumers. This is a complex task to
accomplish because organisation undergoes in external environment which has its influence on
its productivity and quality of services which it provides to its consumers.
Organisation has its own limitations of time, labour resources and disposable income
which it has to spend on the staff salaries and on the delivering of services to customers.
Operations department manages the time to take in task and which has positive impact on the
organisation's effectiveness and it lays the path for efficient profit generation for it in the best
possible way (Parry, Mills and Turner, 2010). This enhances its productivity and it builds brand
image in the market. Firm like Starbucks manages it undertakings in proficient way by
expanding its customers in different market.

CONCLUSION
Hereby, it can be concluded that operation department in an organisation plays an
important role in it. Managers and leaders makes decisions in the best interest of the
organisation. Social influences also impact the organisation in way which might become
obstacle in firm's growth and profitability. Leaders play vital role by motivating team members
in positive way so that allocated tasks to them can be effectively done in better way. It also
improves and boosts employee morale in the organisation. The decisions made and implemented
by managers has an impact on each and every aspect of the organisation.

REFERENCES
Books and Journals
Akkerman, R., Farahani, P. and Grunow, M., 2010. Quality, safety and sustainability in food
distribution: a review of quantitative operations management approaches and challenges.
Or Spectrum. 32(4). pp. 863-904.
Barratt, M., Choi, T. Y. and Li, M., 2011. Qualitative case studies in operations management:
Trends, research outcomes, and future research implications. Journal of Operations
Management. 29(4). pp.329-342.
Galindo, G. and Batta, R., 2013. Review of recent developments in OR/MS research in disaster
operations management. European Journal of Operational Research. 230(2). pp.201-211.
Gunasekaran, A. and Ngai, E. W., 2012. The future of operations management: an outlook and
analysis. International Journal of Production Economics. 135(2). pp.687-701.
Heizer, J., 2016. Operations Management, 11/e. Pearson Education India.
Naor, M., Linderman, K. and Schroeder, R., 2010. The globalization of operations in Eastern and
Western countries: Unpacking the relationship between national and organizational culture
and its impact on manufacturing performance. Journal of operations management. 28(3).
pp.194-205.
Parry, G., Mills, J. and Turner, C., 2010. Lean competence: integration of theories in operations
management practice. Supply Chain Management: An International Journal. 15(3).
pp.216-226.
Peng, D. X. and Lai, F., 2012. Using partial least squares in operations management research: A
practical guideline and summary of past research. Journal of Operations Management.
30(6). pp.467-480.
Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.
Subramanian, N. and Ramanathan, R., 2012. A review of applications of Analytic Hierarchy
Process in operations management. International Journal of Production Economics.
138(2). pp. 215-241.
Yang, M. G. M., Hong, P. and Modi, S. B., 2011. Impact of lean manufacturing and
environmental management on business performance: An empirical study of
manufacturing firms. International Journal of Production Economics. 129(2). pp.251-261.
Zurich, L. B., 2017. Service Operations and Management.

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