Management and Operations: Key Approaches, Importance, and Factors

This presentation provides an overview of management and operations, including key approaches such as total quality management and just in time. It discusses the importance of operations management in achieving efficiency and profitability, as well as the factors that influence decision-making in this area. The presentation also highlights the role of corporate social responsibility, culture and values, ethics and sustainability, and stakeholder expectations in operations management. References are provided for further reading.

MANAGEMENT AND
OPERATIONS

• Introduction
• Key approaches of operations management
• Importance of operations management
• Factors affecting operations management and decisions
• Conclusion
• References
Table of content

Introduction
Management and operations are refers to numerous
tasks or practices which help in eliminating the
unnecessary course of actions which reduce the
wastage of organizational resources and time. It
contains various approaches which increases the
efficiency and profitability level of business.

Operation Management refers to the area of planning and controlling the production
process of converting the raw material and information into finished g products and
services. It mainly focus on increasing the level of efficiency for maximization of profits
and balancing production costs with minimum wastage of resources.
Major key Operations of M&S
Production: M&S known for its high quality and innovative products and deals in
diversified product lines to satisfy the versatile demands of consumers.
Key approaches of operations management

 Supply chain network: For smooth availability of products and services in market, organizations needs
effective network of suppliers who act as a bridge between producer and customer. M&S is a large global
enterprise which serves stylish clothing and other items with help of over 2000 suppliers internationally and
approx 600 stores located in UK which enables them to provide fresh and trendy products on perfect time.
 Inventory Management: Inventory play an essential role in operations as customers come up with certain
demands of particular products at a peculiar time for that every organization has to maintain required stock..
M&S always preserve some stock in order to supply or deliver the quantity when demand arises.
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Different Approaches of Operation Management
 TOTAL QUALITY MANAGEMENT(TQM): It refers to the process of continuous improvement in quality by
addressing and reducing any lapse or flaw in production and try to enhance the customer experience which is an ultimate
goal for any organization. In easy terms TQM stands for Customer focus, Regular Enhancements and Total Involvement
of Employees. For sustain the quality level, M&S leader will play a role of motivator to inspire its members to take
initiative for drawing customer attention and treat them with respect and honour. While manger will evaluate the product
quality at various dimension like performance, durability, response, serviceability to provide certain actions and measure
in improving performance.
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 JUST IN TIME: This approach explains how to manage the
inventory to avoid the problem of excess and shortage of material or
stock. It is a method used when goods are ordered and received
depends on need arises in production process. In case of M&S, leader
will consider the implementation process perform by fellow members
to maintain the efficiency level of inventory. Whereas, manager will
formulate the plan and make use of tools or methods (FIFO,LIFO)
and ensure the reduction in cost of storage.

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KAIZEN Approach: It is an Japanese term which explains the management philosophy focus
on the need of continuous improvement and process of re engineering (rethinking and
redesigning of business process model) in consideration of whole change. M&S leader will help
the group in identifying the waste and focus on eliminating the same from the workplace also
lead them towards experience working in lean environment. While manger constantly maintain
the purpose regarding improvement of production with the motive of reaching the edge of
competitiveness.

Importance of operations management
• Operations Management concerned with the management practices which are
implemented for the achievement of highest efficiency and effectiveness possible in
working of organisation which result in higher profit margin. It is a branch of
management which focus on how to earn maximum revenue with least possible cost. It
also take into account that waste should be minimum and raw material must be utilised
efficiently so that there would be less wastage of raw material.

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Reducing wastage of resources: Just in time assure smooth supply chain management.
Raw material should be ordered before the conversion of current raw material into final
goods. This approach would also aid in reducing wastage of resources. Company have to
formulate proper inventory management strategy so that there would be no wastage of
resources. Inventory management should be performed in such a manner that there
would be neither excess of inventory that consume storage and leads to wastage nor
scarcity of raw material during production process.
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Reducing cost of storage: Implementation of Just in Time management approach would help
company in efficient and effective management of stock. Just in Time approach focus on
efficient management of inventory (Matthias and et. al., 2017). There should be optimum
utilisation of raw material. Just in Time approach ensure that there should be proper inventory
management in an organisation. Just in time would reduce the burden of storing excess stock
there cost of storage get decreased.

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• Retaining customers: TQM would aid in differentiating firm's products from rival
products that would create an edge over the competition. Distinguished products would
assist company in achieving brand loyal customer which would reduce consumer switch
over cost. It accelerate the growth of firm and bring loyal customers who assist companies
in achieving the position of market leader.

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• Increasing profitability of business: Lean management assure that process that provides
least return on investment is eliminated. The process of high cost and low value should be
identified and removes as soon as possible.

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Improving quality of product: Marks and Spencer can use Total Quality Management
approach to improve the quality of their product and services. Total Quality
Management focus on improvement of functions of all the department of an organisation
to ensure that customer would get best in class goods and services. Company must
motivate their employees by means of monetary or non-monetary reward to innovate
new technology and process that helps to improve quality of product.

Factors influencing decisions of Operation
Management
 Business environment refers to the surroundings in which the business operates its
functions. It includes external forces which are highly dynamic in nature and frequently
influence the working of organisation. It is essential for both leader and manger to
examine these factors before conducting any decision-making process and consider the
negative or positive aspect of change. M&S is a global multinational company and
operates its business in approx 50 countries and it has to serve its products and services
in accordance with the particular environment.

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Main components which has to be consider by leader and managers for effortless operations:
Corporate Social Responsibility: These are charitable activities performs by business enterprises for welfare
of the society. Companies set apart some portion of its profit for charity purpose. Every company has to
contribute in a positive manner to improvise society and its environment and for long survival. Mark and
Spencer's is brand name which is commonly known by everyone in UK as a part of CSR company five year
eco plan to enhance environmental performance and offer sustainable items. Also with help of Oxfam firm
recycled 1.8 million used clothing . In this leader and manager will consider the current CSR plan and
policies at the time of decision-making process to provide safe and healthy social environment.

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 Culture and Values: This factor explains each individual has own norms and belief
which varies from nation to nation that influence the operations of organization. M&S
as big corporation has its business units in different countries and have to perform its
function in such diverse culture. Leader and Manger both has to maintain a healthy
cultural environment in company to meet the employee and customer expectations.

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Ethics and Sustainability: Ethics refers to the moral fundamentals which regulates an
individual personality and attitude whereas sustainability justify an ability to preserve
certain level of standards which helps in long term survival of business. M&S leader
and manager will make disciplined and rewarding atmosphere in workplace to
appreciate personalities which automatically intensify the level of productivity.

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Stakeholder Expectation: These are people who invest in organisation and have a certain
control over the decisions in regulating the same firm. This factor affects the operations as
they want fruitful return for their invested funds and owners have responsibility to fulfil the
same. M&S leaders will maintain a trustworthy environment within association whereas
manager will maintain transparency to uphold firm's dignity in eyes of shareholders and
ensure them about investment projects.

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Customers: Taste and preference of customers are dynamic in nature. It differ from person to
person and changes from generation to generation. Company is required to consider latest
trends among consumers while making products. As M&S deals in fashion accessories
therefore it needs to analyse the customer's fashion taste and preferences. For instance,
there is a trend of customized t-shirts in which consumer like to wear t-shirts their
favourite opinions, quotations or dialogue are printed. M&S can make such t-shirts on
customer's request.

Conclusion
From this presentation, it is concluded that operation management plays a vital role in
management because there are different key approaches that are used by organization to
improve the intensity of productivity in business in order to attain the mission goals.
Moreover, there are number of extrinsic forces that affect the operational decisions in regard
of this leader and manager require to examine these factors according to which they
formulate particular strategy of frameworks.

Swink, M., and et. al., 2017. Managing operations across the supply chain. New York, NY:
McGraw-Hill Education.
Thomé, A. M. T., Scavarda, L. F. and Scavarda, A. J., 2016. Conducting systematic
literature review in operations management. Production Planning & Control. 27(5).
pp.408-420.
Sterman, J., and et. al., 2015. System dynamics perspectives and modeling opportunities for
research in operations management. Journal of Operations Management. 39. p.40.
References

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