Management and Operation Techniques
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This assignment provides a comprehensive overview of various management and operation techniques used in businesses. It covers topics such as operation management devices, power management architecture, labour and management co-operation, demand-side management, and electronic system management. The assignment also touches on strategic international management and recreational vehicle management. It includes references to patents and publications related to these topics.
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Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Define and compare the different roles and characteristics of a leader and a manager....1
LO 2.................................................................................................................................................4
P2 Examine examples of how the role of a leader and the function of a manager apply in
different situational contexts .................................................................................................4
P3 Apply different theories and models of approach, including situational leadership, System
leadership and contingency....................................................................................................6
LO 3.................................................................................................................................................8
P4 Explain the key approaches to operations management and the role that leaders and
managers play with reference to the chosen organisation......................................................8
P5 Explain the importance and value of operations management in achieving Business
objectives with reference to the chosen organisation.............................................................9
LO 4...............................................................................................................................................10
P6 Assess the factors within the business environment that impact upon operational
management and decision-making by Leaders and managers with reference to the chosen
organisation..........................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Define and compare the different roles and characteristics of a leader and a manager....1
LO 2.................................................................................................................................................4
P2 Examine examples of how the role of a leader and the function of a manager apply in
different situational contexts .................................................................................................4
P3 Apply different theories and models of approach, including situational leadership, System
leadership and contingency....................................................................................................6
LO 3.................................................................................................................................................8
P4 Explain the key approaches to operations management and the role that leaders and
managers play with reference to the chosen organisation......................................................8
P5 Explain the importance and value of operations management in achieving Business
objectives with reference to the chosen organisation.............................................................9
LO 4...............................................................................................................................................10
P6 Assess the factors within the business environment that impact upon operational
management and decision-making by Leaders and managers with reference to the chosen
organisation..........................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
INTRODUCTION
Management and operation is the terms that can be used together while planning for the
business and making strategies for achieving profit out of it. It is a branch that helps in
specialisation within the field of business. A manager in an organisation is mainly concerned
with planning, organizing and controlling the production of the company. The company taken for
the purpose of the study is TOYOTA PLC. Which is the biggest Auto mobile company in the
world and is based in Japan. Company was incorporated in the year 1937 and has its headquarter
in Aichi Japan. This report covers various types of leadership and management skills which are
practised by managers of company also their strength and weakness would be analysed. Also
roles of managers would be discussed in context of a company. At last relationship between
leadership and management in contemporary environment would be discussed accordingly.
LO 1
P1 Define and compare the different roles and characteristics of a leader and a manager.
Introduction to the company and the management structure
Toyota motors corporation is a multinational automotive manufacturing company that is
based in Japan. This is the worlds sixth largest company by revenue and it is the worlds second
largest automotive manufacturing company. Toyota corporation organisation structure is based
on varied business operations. The organisation structure of the company defines the patterns or
the arrangements in the firms resources and processes. The management structure of Toyota is in
form of vertical direction where the employees has to inform to the managers vertically and their
different department to their department heads. Company has reorganised its management
structure which includes the following characteristics:
Global hierarchy: They have maintained a global hierarchy which helps them to get all
the information about their global network and it also helps them to achieve the target of
implementing the strategies world wide.
Geographic divisions: The company has made eight regional divisions which helps them
to work globally. These eight regional heads reports to companies headquarters that is
situated in Japan.
1
Management and operation is the terms that can be used together while planning for the
business and making strategies for achieving profit out of it. It is a branch that helps in
specialisation within the field of business. A manager in an organisation is mainly concerned
with planning, organizing and controlling the production of the company. The company taken for
the purpose of the study is TOYOTA PLC. Which is the biggest Auto mobile company in the
world and is based in Japan. Company was incorporated in the year 1937 and has its headquarter
in Aichi Japan. This report covers various types of leadership and management skills which are
practised by managers of company also their strength and weakness would be analysed. Also
roles of managers would be discussed in context of a company. At last relationship between
leadership and management in contemporary environment would be discussed accordingly.
LO 1
P1 Define and compare the different roles and characteristics of a leader and a manager.
Introduction to the company and the management structure
Toyota motors corporation is a multinational automotive manufacturing company that is
based in Japan. This is the worlds sixth largest company by revenue and it is the worlds second
largest automotive manufacturing company. Toyota corporation organisation structure is based
on varied business operations. The organisation structure of the company defines the patterns or
the arrangements in the firms resources and processes. The management structure of Toyota is in
form of vertical direction where the employees has to inform to the managers vertically and their
different department to their department heads. Company has reorganised its management
structure which includes the following characteristics:
Global hierarchy: They have maintained a global hierarchy which helps them to get all
the information about their global network and it also helps them to achieve the target of
implementing the strategies world wide.
Geographic divisions: The company has made eight regional divisions which helps them
to work globally. These eight regional heads reports to companies headquarters that is
situated in Japan.
1
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Product based divisions: Company has made its product based structure that helps them
to make products which are best in quality and are functions. Through this company
achieves the objective of best in line products in global market.
For an organisation it is important to check the key aspects such as leadership and
management. As leadership is known as the ability of a human being to lead others according to
the desires and want of the company so as to achieve the pre set targets (White, 2016).
Managers: Managers are the persons in an organization who design and manage the
work of an organization in the direction of the pre-determined goals and objective of the
company. For the successful accomplishment of the objectives, the task of the managers is to
develop and establish the relevant strategies and policies and to plan the working of the staff and
the employees with the aim that they perform their respective tasks in accordance to the
objectives.
Leaders: Leaders are the people who get the work done from the employees concerning
the goals of the company. The leaders play an important role in motivating the employees
through their leadership and communication skills and inherent in them the vision of the
organization. They make the employees work in a manner to achieve the objectives. The major
aim of leaders is to influence and inspire the employees in order to their performance which as a
result increase the efficiency and productivity in the organization.
As it is seen that management and leadership are two different concepts so it is important
to differentiate between the roles of the leader and the managers:
LEADERS MANAGERS
Function of leader is to innovate the things in a
new manner.
Whereas the role of manager is to administer
that innovation so as to achieve success.
Role of leader is to help employees of the
company to develop the new products that are
helpful to the customers.
Where as the managers helps in developing the
key employees and maintaining the
relationship between other employees.
Leader always focuses on the people of the
company and makes their performance better.
The focus of the managers is on the systems
and the structure of the company.
The leader frames trust in the employees of the
company.
The manager of the company controls the
working style of the employees and the how
2
to make products which are best in quality and are functions. Through this company
achieves the objective of best in line products in global market.
For an organisation it is important to check the key aspects such as leadership and
management. As leadership is known as the ability of a human being to lead others according to
the desires and want of the company so as to achieve the pre set targets (White, 2016).
Managers: Managers are the persons in an organization who design and manage the
work of an organization in the direction of the pre-determined goals and objective of the
company. For the successful accomplishment of the objectives, the task of the managers is to
develop and establish the relevant strategies and policies and to plan the working of the staff and
the employees with the aim that they perform their respective tasks in accordance to the
objectives.
Leaders: Leaders are the people who get the work done from the employees concerning
the goals of the company. The leaders play an important role in motivating the employees
through their leadership and communication skills and inherent in them the vision of the
organization. They make the employees work in a manner to achieve the objectives. The major
aim of leaders is to influence and inspire the employees in order to their performance which as a
result increase the efficiency and productivity in the organization.
As it is seen that management and leadership are two different concepts so it is important
to differentiate between the roles of the leader and the managers:
LEADERS MANAGERS
Function of leader is to innovate the things in a
new manner.
Whereas the role of manager is to administer
that innovation so as to achieve success.
Role of leader is to help employees of the
company to develop the new products that are
helpful to the customers.
Where as the managers helps in developing the
key employees and maintaining the
relationship between other employees.
Leader always focuses on the people of the
company and makes their performance better.
The focus of the managers is on the systems
and the structure of the company.
The leader frames trust in the employees of the
company.
The manager of the company controls the
working style of the employees and the how
2
the managers work.
Leader is always unique in nature and is
always presents in actual image.
Manager of the company is always command
oriented and presents the image of the
organisation as their own image.
Managers and leaders have different characteristics while performing their duties.
Characteristics of managers includes that they gets the work done in a best manner and ensure
that they focus on doing the task in effective manner. They also take care of managing the
activities of other employees and of different department.
While characteristics of leaders includes that they are the most strategically focused
people and they helps in employing the people through specifying the tasks. They are also
focused on bringing change in the organisation. One of the main characteristics of leaders
include that they helps in motivating the team and producing the results.
Leadership has various functions that are related to their goals and to their objectives
which includes the following:
Setting goals for the each task that is done
Organising the activities that are related with the task that is assigned to the employees.
Initiating the actions for the task that is required to be done while working.
Also co-ordinating the work of employees in a group is main function of a leader.
Also management of the company has different functions that they have to implement
while working in an organisation. These functions include the following:
Planning the task of the employees in the organisation is considered as the main function
of management as this includes setting the mission and vision to achieve the objectives.
Manager of organisation has to perform organising function that helps them to manage
and control the overall organisational structure (Wang and Singh, 2018). Organising the
management of company includes matching and making balance between all the
resources that an organisation have so as to achieve pre set goals and objectives.
There are different theories of management and leadership that helps the company to
achieve the success as and when required. These theories includes the following:
Transformational theory of leadership: It is defined as a theory of leadership that helps
in bringing changes in employees way of working. This form of leadership is best
3
Leader is always unique in nature and is
always presents in actual image.
Manager of the company is always command
oriented and presents the image of the
organisation as their own image.
Managers and leaders have different characteristics while performing their duties.
Characteristics of managers includes that they gets the work done in a best manner and ensure
that they focus on doing the task in effective manner. They also take care of managing the
activities of other employees and of different department.
While characteristics of leaders includes that they are the most strategically focused
people and they helps in employing the people through specifying the tasks. They are also
focused on bringing change in the organisation. One of the main characteristics of leaders
include that they helps in motivating the team and producing the results.
Leadership has various functions that are related to their goals and to their objectives
which includes the following:
Setting goals for the each task that is done
Organising the activities that are related with the task that is assigned to the employees.
Initiating the actions for the task that is required to be done while working.
Also co-ordinating the work of employees in a group is main function of a leader.
Also management of the company has different functions that they have to implement
while working in an organisation. These functions include the following:
Planning the task of the employees in the organisation is considered as the main function
of management as this includes setting the mission and vision to achieve the objectives.
Manager of organisation has to perform organising function that helps them to manage
and control the overall organisational structure (Wang and Singh, 2018). Organising the
management of company includes matching and making balance between all the
resources that an organisation have so as to achieve pre set goals and objectives.
There are different theories of management and leadership that helps the company to
achieve the success as and when required. These theories includes the following:
Transformational theory of leadership: It is defined as a theory of leadership that helps
in bringing changes in employees way of working. This form of leadership is best
3
suitable in organisation which aims to successful planning and achieving the
organisational goals.
Trait theory of leadership: this is based on the traits theory who have defined the
qualities of leadership which would lead in effectiveness of the leadership style. This is
best for the organisation that has a huge demand for its products and due to this
productivity of workforce has to be controlled strictly.
Classical management theory: It is based on the belief that the workers in an
organisation have some physical needs and economic needs that should be fulfilled by
management so that they are able to work more efficiently (Wang and Singh, 2018). This
is best suited for those organisation where the organisation is only concerned about the
productivity.
Behavioural theory of management: It is also an approach of leaders that helps the
organisation to take decision as per the situation of the organisation. This includes the
behaviour of managers towards the situation that arise while working in the organisation.
System management theory: It offers an alternative approach to the planning and
management of organisations. In Toyota, this theory proposes that businesses, like human
body, consists of multiple components that work harmoniously so that the larger system
can function optimally. According this theory, the success of the firm depends on several
key elements such as synergy, interdependence and interrelation between various
subsystems.
LO 2
P2 Examine examples of how the role of a leader and the function of a manager apply in
different situational contexts
The approach of leader while working in an organisation is different and includes
involving others while making decisions. The leaders always take the consultation of other which
is dependent on the situation and the need of project that is to be done. This would help in
motivating the employees as they will feel that they are included in the process of decision
making (Szewczak, 2016). As it is seen that functions of managers and the role of leader helps
the organisation to work in a more desirable way so as to achieve the objective of the
organisation on timely basis. In case of TOYOTA PLC, the operational management department
4
organisational goals.
Trait theory of leadership: this is based on the traits theory who have defined the
qualities of leadership which would lead in effectiveness of the leadership style. This is
best for the organisation that has a huge demand for its products and due to this
productivity of workforce has to be controlled strictly.
Classical management theory: It is based on the belief that the workers in an
organisation have some physical needs and economic needs that should be fulfilled by
management so that they are able to work more efficiently (Wang and Singh, 2018). This
is best suited for those organisation where the organisation is only concerned about the
productivity.
Behavioural theory of management: It is also an approach of leaders that helps the
organisation to take decision as per the situation of the organisation. This includes the
behaviour of managers towards the situation that arise while working in the organisation.
System management theory: It offers an alternative approach to the planning and
management of organisations. In Toyota, this theory proposes that businesses, like human
body, consists of multiple components that work harmoniously so that the larger system
can function optimally. According this theory, the success of the firm depends on several
key elements such as synergy, interdependence and interrelation between various
subsystems.
LO 2
P2 Examine examples of how the role of a leader and the function of a manager apply in
different situational contexts
The approach of leader while working in an organisation is different and includes
involving others while making decisions. The leaders always take the consultation of other which
is dependent on the situation and the need of project that is to be done. This would help in
motivating the employees as they will feel that they are included in the process of decision
making (Szewczak, 2016). As it is seen that functions of managers and the role of leader helps
the organisation to work in a more desirable way so as to achieve the objective of the
organisation on timely basis. In case of TOYOTA PLC, the operational management department
4
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of the company focuses on theories that helps in combining efforts of the leaders with functions
of managers.
Several theories of management that is implied with the leadership skills helps the
company to grow its operations and maximise its sale. Also the operational management
department focuses on the management theories which helps them to increase the turnover of
their product as well as increase the revenue accordingly. Mangers of company has made an
objective that would help them to focuses on the combined efforts of managers as well as
employees of the company so that they are able to accomplish the goals as desired by company.
TOYOTA PLC, uses the classical theory of management through which management makes the
policies to enhance the productivity (Shiffman, and et. al., 2018).
Managers of TOYOTA has also applied the behavioural theory which helps them to
follow the policies which takes into consideration the skills and abilities of employees and the
leaders. This helps them to transform style of leadership through which they can communicate
with their employees and can formulate policies in an effective way (Hasegawa, 2017).
Various roles and function of leadership and management in an organisation includes the
following:
Leaders helps in setting goals as leaders is expected to perform creative functions of
laying out goals and policies so as to make subordinates to work with motivation and
confidence.
Also the main function of leader includes that they helps in creating and shaping the
organisation
As it is seen that the function of leader includes that they have to create a link between
management and workers which would help in implementation of policies in a better
way.
The management and leadership helps them to rectify the imperfectness to the formal
organisational relationships. As their always exist a formal relationship among the
internal employees of organisation that is not good for companies. So with the help of
management and leadership they can rectify the problems (Haralson and et. al., 2017).
So managers has to check the different theories that will help them to achieve the success and to
make production accordingly.
5
of managers.
Several theories of management that is implied with the leadership skills helps the
company to grow its operations and maximise its sale. Also the operational management
department focuses on the management theories which helps them to increase the turnover of
their product as well as increase the revenue accordingly. Mangers of company has made an
objective that would help them to focuses on the combined efforts of managers as well as
employees of the company so that they are able to accomplish the goals as desired by company.
TOYOTA PLC, uses the classical theory of management through which management makes the
policies to enhance the productivity (Shiffman, and et. al., 2018).
Managers of TOYOTA has also applied the behavioural theory which helps them to
follow the policies which takes into consideration the skills and abilities of employees and the
leaders. This helps them to transform style of leadership through which they can communicate
with their employees and can formulate policies in an effective way (Hasegawa, 2017).
Various roles and function of leadership and management in an organisation includes the
following:
Leaders helps in setting goals as leaders is expected to perform creative functions of
laying out goals and policies so as to make subordinates to work with motivation and
confidence.
Also the main function of leader includes that they helps in creating and shaping the
organisation
As it is seen that the function of leader includes that they have to create a link between
management and workers which would help in implementation of policies in a better
way.
The management and leadership helps them to rectify the imperfectness to the formal
organisational relationships. As their always exist a formal relationship among the
internal employees of organisation that is not good for companies. So with the help of
management and leadership they can rectify the problems (Haralson and et. al., 2017).
So managers has to check the different theories that will help them to achieve the success and to
make production accordingly.
5
The managers or the leaders of the company performs different functions while in the in
the different situational so that the company gets maximum results. Some of the example of that
they performs are:
Situation 1
As in Toyota Plc. there is problem that the employee of the company were not able to
perform their duties in well manner as well as in the organised way. Therefore the productivity
level of employees was on the downfall due to which the companies production was decreasing.
Role of leader and the manager in solving the problem
While in the situation where the employees of the company were not able to give their
best while in the operations. The managers of the company used different techniques such as
they have started the approach of giving the incentive to the employees for the extra production
that they do. So as to manage the work of the employees the managers and the leaders have to
motivate the employees to achieve the desired result.
Situation 2
When the Toyota Plc. Was facing problem in the internal communication and the
employees were finding it difficult to communicate with the leaders and the managers due to
which the production of various products were hampered.
Role of leader and the manager in solving the problem
In this situation the leader and the managers used a vertical approach of communication
through which they were able to make the communication between the employees of the
company. This helped in solving the problems that were arising in front of them and also
motivated the employees to perform there duties in best and proper way. This helped the
company to achieve the end result at the end of the day.
P3 Apply different theories and models of approach, including situational leadership, System
leadership and contingency.
There are different theories of management that helps them to analyse the situation of
company and also helps to increase companies’ performance through different medium. These
theories helps TOYOTA in achieving the desires and the objectives that defined by the
management. These theories include the following:
Situational leadership style: this is the type of leadership style that was first developed
by Paul Hersey and Ken Blanchard who stated that it depends on the situation that arise
6
the different situational so that the company gets maximum results. Some of the example of that
they performs are:
Situation 1
As in Toyota Plc. there is problem that the employee of the company were not able to
perform their duties in well manner as well as in the organised way. Therefore the productivity
level of employees was on the downfall due to which the companies production was decreasing.
Role of leader and the manager in solving the problem
While in the situation where the employees of the company were not able to give their
best while in the operations. The managers of the company used different techniques such as
they have started the approach of giving the incentive to the employees for the extra production
that they do. So as to manage the work of the employees the managers and the leaders have to
motivate the employees to achieve the desired result.
Situation 2
When the Toyota Plc. Was facing problem in the internal communication and the
employees were finding it difficult to communicate with the leaders and the managers due to
which the production of various products were hampered.
Role of leader and the manager in solving the problem
In this situation the leader and the managers used a vertical approach of communication
through which they were able to make the communication between the employees of the
company. This helped in solving the problems that were arising in front of them and also
motivated the employees to perform there duties in best and proper way. This helped the
company to achieve the end result at the end of the day.
P3 Apply different theories and models of approach, including situational leadership, System
leadership and contingency.
There are different theories of management that helps them to analyse the situation of
company and also helps to increase companies’ performance through different medium. These
theories helps TOYOTA in achieving the desires and the objectives that defined by the
management. These theories include the following:
Situational leadership style: this is the type of leadership style that was first developed
by Paul Hersey and Ken Blanchard who stated that it depends on the situation that arise
6
during the working of the company and according to this various styles of leadership are
adopted so a s to tackle the situation (Pierce, and et. al., 2018). In Toyota PLC they apply
this theory according to the working experience of their employees.
Strength Weaknesses
This helps in bringing motivation among the
employees while making decisions.
This includes short duration approach so
employees has to work according to the present
situations
System leadership style: it is the leadership style which is used across the organisation
through which the system in the organisation is being defined. This leadership practice
helps the leaders of the company to look into the broader approach where they are able to
develop the organisatiokey n as well as the stakeholder which are effected by the change
of the system leadership and the structure of the organisation (Morschett, and et. al.,
2015). This helps Toyota to overcome all the issues in more effectual manner.
Strength Weaknesses
It is the theory that specifies the image of
dynamism and complexities of the
environment and also helps in bringing
effective framework while building ideas.
As this is complicated and lengthy process so it
is hard to implement.
Contingency approach: this theory of leadership depicts that in an organisation there are
two types of leaders which helps company to perform its task on time. It is seen that
leaders who are task oriented one are not concerned about what employees think about
them (Flake, and et. al., 2017). This helps the company to build a good team spirit and
improve the motivation of the employees so as to avoid the conflict that arise between the
employees.
Strength Weaknesses
This theory does not include employees to be
effective in entire situations
In this theory the selection of most suitable
business plan is difficult for the leaders as this
7
adopted so a s to tackle the situation (Pierce, and et. al., 2018). In Toyota PLC they apply
this theory according to the working experience of their employees.
Strength Weaknesses
This helps in bringing motivation among the
employees while making decisions.
This includes short duration approach so
employees has to work according to the present
situations
System leadership style: it is the leadership style which is used across the organisation
through which the system in the organisation is being defined. This leadership practice
helps the leaders of the company to look into the broader approach where they are able to
develop the organisatiokey n as well as the stakeholder which are effected by the change
of the system leadership and the structure of the organisation (Morschett, and et. al.,
2015). This helps Toyota to overcome all the issues in more effectual manner.
Strength Weaknesses
It is the theory that specifies the image of
dynamism and complexities of the
environment and also helps in bringing
effective framework while building ideas.
As this is complicated and lengthy process so it
is hard to implement.
Contingency approach: this theory of leadership depicts that in an organisation there are
two types of leaders which helps company to perform its task on time. It is seen that
leaders who are task oriented one are not concerned about what employees think about
them (Flake, and et. al., 2017). This helps the company to build a good team spirit and
improve the motivation of the employees so as to avoid the conflict that arise between the
employees.
Strength Weaknesses
This theory does not include employees to be
effective in entire situations
In this theory the selection of most suitable
business plan is difficult for the leaders as this
7
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includes the future performance of company.
How managers and leaders have made an impact on the organisation
From the above approaches it can be concluded that managers and leader roles and duties
varies while performing any operating changes within the company. The decisions that are made
by them always changes according to the requirements of a organisation. Hence if leaders and
managers work together by coordinating their task they would be able to achieve the objective of
future growth in a best and efficient way. Also this would help employee's of the company to get
motivated while doing the job.
LO 3
P4 Explain the key approaches to operations management and the role that leaders and managers
play with reference to the chosen organisation.
Key operations of the company refers to the main activities of the company that helps
company in carrying out the on time and helps in making maximum revenue. These are the
activities that are carried out by company so as to produce high quality of goods for customers.
There are various key operational functions of the operation managers which helps in designing
the objectives of the business. These key operations includes planning, organising, staffing,
leading and controlling the employees and the management. This helps in providing best quality
of product.
The key approaches to operational management for Toyota which helps them in
enhancing operational process includes:
Just in time approach: it is the strategy that helps to increase the efficiency and helps in
decreasing wastes. This is done while ordering the goods and the raw material that is required for
the production to take place. This helps in reducing the cost of the inventory. As the company
uses this approach of inventory management which helps them to achieve the objective of
inventory management in proper way. Through this approach the inventory is not wasted and is
used in efficient manner.
Role of managers:
They have to check that whether the employees are effectively involved and are working in an
efficient manner.
8
How managers and leaders have made an impact on the organisation
From the above approaches it can be concluded that managers and leader roles and duties
varies while performing any operating changes within the company. The decisions that are made
by them always changes according to the requirements of a organisation. Hence if leaders and
managers work together by coordinating their task they would be able to achieve the objective of
future growth in a best and efficient way. Also this would help employee's of the company to get
motivated while doing the job.
LO 3
P4 Explain the key approaches to operations management and the role that leaders and managers
play with reference to the chosen organisation.
Key operations of the company refers to the main activities of the company that helps
company in carrying out the on time and helps in making maximum revenue. These are the
activities that are carried out by company so as to produce high quality of goods for customers.
There are various key operational functions of the operation managers which helps in designing
the objectives of the business. These key operations includes planning, organising, staffing,
leading and controlling the employees and the management. This helps in providing best quality
of product.
The key approaches to operational management for Toyota which helps them in
enhancing operational process includes:
Just in time approach: it is the strategy that helps to increase the efficiency and helps in
decreasing wastes. This is done while ordering the goods and the raw material that is required for
the production to take place. This helps in reducing the cost of the inventory. As the company
uses this approach of inventory management which helps them to achieve the objective of
inventory management in proper way. Through this approach the inventory is not wasted and is
used in efficient manner.
Role of managers:
They have to check that whether the employees are effectively involved and are working in an
efficient manner.
8
KAIZEN: this is an approach that helps in improving every function of the business unit.
This is used to reduce waste in every department of the organisation (López and et. al.,2015).
KAIZEN is an approach that is based on 5S which are sort, set in order, shine, standardise and
sustain. This helps the company to encourage the development of team work and break down the
department barriers so as to achieve good quality of the product that is manufactured. As in the
case of Toyota Plc. They use this technique so that they can reduce the waste which is produced
while in the manufacturing process. They use the 5s approach through which the order is set and
the waste is minimised.
Role of managers:
This includes the managers to use suppliers as the business partner through which they would be
able to achieve cost benefits.
Total quality management: This is defined as an act which helps in overseeing all the
task and the activities which are desired to maintain excellence which also include creating and
implementing the quality planning and assurance as well as the quality control and quality
improvement. The main focus of TQM is to improve the quality and the performance in all the
functions, departments and the process so as to achieve the customer satisfaction as a whole. The
Toyota Plc. Uses the approach so that the product that is manufactured is best in quality. At
every step of production they have made various checkpoints which checks the quality of the
product which is manufactured. Hence it helps in improving the product durability and bringing
the benchmark in the industry.
Role of managers:
Role of managers and leader includes making continuous improvement of business and
processes.
The operational management of any company is an important part of any company that
helps them to administer the activities and also helps the company to improve the performance of
its employees. This includes the way through which the resources of the organisation are utilized
so as to make it effective and also helps to reduce the cost that is related to it. The main function
of the operational management of the company is to increase the productivity of the company
and to manage the resources in a best way (Manzini, and et. al., 2018). TOYOTA has applied
different approaches that would help them to achieve the objective of maximising profits.
9
This is used to reduce waste in every department of the organisation (López and et. al.,2015).
KAIZEN is an approach that is based on 5S which are sort, set in order, shine, standardise and
sustain. This helps the company to encourage the development of team work and break down the
department barriers so as to achieve good quality of the product that is manufactured. As in the
case of Toyota Plc. They use this technique so that they can reduce the waste which is produced
while in the manufacturing process. They use the 5s approach through which the order is set and
the waste is minimised.
Role of managers:
This includes the managers to use suppliers as the business partner through which they would be
able to achieve cost benefits.
Total quality management: This is defined as an act which helps in overseeing all the
task and the activities which are desired to maintain excellence which also include creating and
implementing the quality planning and assurance as well as the quality control and quality
improvement. The main focus of TQM is to improve the quality and the performance in all the
functions, departments and the process so as to achieve the customer satisfaction as a whole. The
Toyota Plc. Uses the approach so that the product that is manufactured is best in quality. At
every step of production they have made various checkpoints which checks the quality of the
product which is manufactured. Hence it helps in improving the product durability and bringing
the benchmark in the industry.
Role of managers:
Role of managers and leader includes making continuous improvement of business and
processes.
The operational management of any company is an important part of any company that
helps them to administer the activities and also helps the company to improve the performance of
its employees. This includes the way through which the resources of the organisation are utilized
so as to make it effective and also helps to reduce the cost that is related to it. The main function
of the operational management of the company is to increase the productivity of the company
and to manage the resources in a best way (Manzini, and et. al., 2018). TOYOTA has applied
different approaches that would help them to achieve the objective of maximising profits.
9
P5 Explain the importance and value of operations management in achieving Business objectives
with reference to the chosen organisation.
The organisational objectives of Toyota PLC. Is to develop the products which are best in
class and are classified as a benchmark in the industry. Also one of the objective of organisation
includes manufacturing the product by sustainable development. They also ensures that they are
able to manage the production process so that quality of products are not compromised in order
to achieve maximum production. The main objective of company is to achieve ranking of worlds
most reputed brand and to maximise the turnover through maximising sales.
There are different functions of operational management which helps in achieving the
objective of the company these functions includes the following:
Control and distribution system: it is very important part of the organisation that helps in
controlling the production process and also ensures proper distribution of the products so
as to fulfil the objectives of the organisation. This has helped the Toyota Plc. In
distribution of the inventory of their products. Also this helps the company to increase the
control over their distribution system through which they gets to know that in which
branch the product has to be sent and from which branch product has to be bought back.
Process Design: The vital function of operational management is to design the process of
production. The company has to design the process of the company so that they will be
able to meet the demands of the customer and to make the profits from it this would also
help them to fulfil the business objective of the company (Goel, 2017). As in the case of
Toyota Plc this has helped them in an effective and organised production department
where there are different departments are made taking care of the production of the
product and helps them in achieving the reward of best manufacturing company in world.
Capacity management: It is very important function of the operation management
department as this helps them to specify the capacity of production and also no excess
goods are produced without the demand. This also helps in maintaining good quality of
the products that are manufactured. Here the Toyota plc has used the mechanism of
capacity management through which they are able to know and produce only the products
which are required this helps them to reduce the extra cost of production as well as excess
production of the goods.
10
with reference to the chosen organisation.
The organisational objectives of Toyota PLC. Is to develop the products which are best in
class and are classified as a benchmark in the industry. Also one of the objective of organisation
includes manufacturing the product by sustainable development. They also ensures that they are
able to manage the production process so that quality of products are not compromised in order
to achieve maximum production. The main objective of company is to achieve ranking of worlds
most reputed brand and to maximise the turnover through maximising sales.
There are different functions of operational management which helps in achieving the
objective of the company these functions includes the following:
Control and distribution system: it is very important part of the organisation that helps in
controlling the production process and also ensures proper distribution of the products so
as to fulfil the objectives of the organisation. This has helped the Toyota Plc. In
distribution of the inventory of their products. Also this helps the company to increase the
control over their distribution system through which they gets to know that in which
branch the product has to be sent and from which branch product has to be bought back.
Process Design: The vital function of operational management is to design the process of
production. The company has to design the process of the company so that they will be
able to meet the demands of the customer and to make the profits from it this would also
help them to fulfil the business objective of the company (Goel, 2017). As in the case of
Toyota Plc this has helped them in an effective and organised production department
where there are different departments are made taking care of the production of the
product and helps them in achieving the reward of best manufacturing company in world.
Capacity management: It is very important function of the operation management
department as this helps them to specify the capacity of production and also no excess
goods are produced without the demand. This also helps in maintaining good quality of
the products that are manufactured. Here the Toyota plc has used the mechanism of
capacity management through which they are able to know and produce only the products
which are required this helps them to reduce the extra cost of production as well as excess
production of the goods.
10
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LO 4
P6 Assess the factors within the business environment that impact upon operational management
and decision-making by Leaders and managers with reference to the chosen organisation.
There are number of factors that impacts the business environment and also impacts its
operations. Therefore, it is important for organisation to identify and analyse the impacts of
external factors on the business environment so that they can make appropriate strategies and
policies which helps them to reduce these impacts (Khlat and et. al., 2016). Various factors that
are identified which impacts operations of company includes Political, economic, social,
technological, environmental and legal factors. Also CSR policy of the company has an impact
on the business approach and the operational management and the decision making process of
the company. The managers of the company should adopt short terms goals for organisation
which would be beneficial for company in future (DiFazio and et. al., 2016). Managers should
also ensure that large part of CSR policy is dedicated towards achieving the betterment of the
individuals and to the society as a whole.
Sustainability of the organisation: This factor includes the sustainability of the
organisation and is the main concern of managers and leaders. This includes the decision that has
to be made in a way that by achieving demand of present generation without compromising
needs of future generation (Johnstone, 2016). This is most important aspect for company to
follow as the growth is dependent on sustainability of the business. The top management of the
company should ensure that objectives and strategies are implemented in a way that helps in
achieving the sustainable growth of organisation.
This factor impacts the decision of the managers and leaders in Toyota as they have to
take various decision and have to formulate the strategies which would affect the companies
sustainability. This helps them to formulate the policies through which organisation can achieve
sustainability for the future growth and benefit.
Cultural factor: The cultural factor of the organisation depends on both internal as well as
the external factors of the organisation. The employees of the company gets motivated if the
internal environment helps them to achieve the objective of motivating them and satisfying their
needs. If the culture within which the employees work is positive then it would boost the
employees morale and confidence towards their work.
11
P6 Assess the factors within the business environment that impact upon operational management
and decision-making by Leaders and managers with reference to the chosen organisation.
There are number of factors that impacts the business environment and also impacts its
operations. Therefore, it is important for organisation to identify and analyse the impacts of
external factors on the business environment so that they can make appropriate strategies and
policies which helps them to reduce these impacts (Khlat and et. al., 2016). Various factors that
are identified which impacts operations of company includes Political, economic, social,
technological, environmental and legal factors. Also CSR policy of the company has an impact
on the business approach and the operational management and the decision making process of
the company. The managers of the company should adopt short terms goals for organisation
which would be beneficial for company in future (DiFazio and et. al., 2016). Managers should
also ensure that large part of CSR policy is dedicated towards achieving the betterment of the
individuals and to the society as a whole.
Sustainability of the organisation: This factor includes the sustainability of the
organisation and is the main concern of managers and leaders. This includes the decision that has
to be made in a way that by achieving demand of present generation without compromising
needs of future generation (Johnstone, 2016). This is most important aspect for company to
follow as the growth is dependent on sustainability of the business. The top management of the
company should ensure that objectives and strategies are implemented in a way that helps in
achieving the sustainable growth of organisation.
This factor impacts the decision of the managers and leaders in Toyota as they have to
take various decision and have to formulate the strategies which would affect the companies
sustainability. This helps them to formulate the policies through which organisation can achieve
sustainability for the future growth and benefit.
Cultural factor: The cultural factor of the organisation depends on both internal as well as
the external factors of the organisation. The employees of the company gets motivated if the
internal environment helps them to achieve the objective of motivating them and satisfying their
needs. If the culture within which the employees work is positive then it would boost the
employees morale and confidence towards their work.
11
This is the factor which has more impact on the performance of the company and the
decisions that are made by the managers and the leaders are effected through this factor. As if the
culture in Toyota is not positive and the people in the organisation are resisting to change then it
may lead to loss to the company as their rivals will get the opportunity to achieve the first mover
advantage.
Also it is seen that while working in the organisation the employees of the company
should work in Ethical manner so that they are able to perform their goals in desired manner. It
will help in doing the right work in right manner which would also make them motivated to
perform their obligations positively.
There are different theories that can help Toyota to achieve operational efficiencies.
These theories includes the following:
Transformational theory: This is the theory that helps an organisation to identify the
requirements of each of the employee. As Toyota already follows moderate technology concept
which helps their workers to maximise the desires of management through appropriate guidance
of transformation. Hence it is essential for the company to to enhance their operational efficiency
so that they can sell maximum number of cars and achieve the advantage of numbers.
Recommendation for future improvements
As it is seen that management of the company is very much important for the future
growth of the business organisation. Hence for this, company has to adopt different numbers of
management and leadership approaches which would maximise their profits. Also company
should focus on its production department that would help them to produce maximum cars as per
the customer demand. So by using this policy company would be able to achieve objective of
maximising profits.
CONCLUSION
From the above report it is analysed that operation management of any company plays a
vital role in doing daily activities of the organisation. This defines the way through which the
production process has to be done so that they are able to achieve maximum profits. The
managers of the company has to implement different principles so that they are able to bring
efficiency in the work that has to be done by employees of the company. Also it is concluded
that companies which are working in the society has to fulfil corporate social responsibility so as
12
decisions that are made by the managers and the leaders are effected through this factor. As if the
culture in Toyota is not positive and the people in the organisation are resisting to change then it
may lead to loss to the company as their rivals will get the opportunity to achieve the first mover
advantage.
Also it is seen that while working in the organisation the employees of the company
should work in Ethical manner so that they are able to perform their goals in desired manner. It
will help in doing the right work in right manner which would also make them motivated to
perform their obligations positively.
There are different theories that can help Toyota to achieve operational efficiencies.
These theories includes the following:
Transformational theory: This is the theory that helps an organisation to identify the
requirements of each of the employee. As Toyota already follows moderate technology concept
which helps their workers to maximise the desires of management through appropriate guidance
of transformation. Hence it is essential for the company to to enhance their operational efficiency
so that they can sell maximum number of cars and achieve the advantage of numbers.
Recommendation for future improvements
As it is seen that management of the company is very much important for the future
growth of the business organisation. Hence for this, company has to adopt different numbers of
management and leadership approaches which would maximise their profits. Also company
should focus on its production department that would help them to produce maximum cars as per
the customer demand. So by using this policy company would be able to achieve objective of
maximising profits.
CONCLUSION
From the above report it is analysed that operation management of any company plays a
vital role in doing daily activities of the organisation. This defines the way through which the
production process has to be done so that they are able to achieve maximum profits. The
managers of the company has to implement different principles so that they are able to bring
efficiency in the work that has to be done by employees of the company. Also it is concluded
that companies which are working in the society has to fulfil corporate social responsibility so as
12
to protect culture and environment. This helps them to maintain sustainability for the future and
also helps in achieving growth.3200 words + 15 slides ppt
13
also helps in achieving growth.3200 words + 15 slides ppt
13
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REFERENCES
Books and Journals
DiFazio, R. A. and et. al., 2016. Bandwidth management (bwm) operation with opportunistic
networks. U.S. Patent Application 15/057,034.
Goel, A., 2017. Planning and management of operation theatre complex. Journal of Evolution of
Medical and Dental Sciences. 6(30). pp.2471-2473.
Haralson, P. S., and et. al., 2017. Electronic system with head management mechanism and
method of operation thereof. U.S. Patent 9,842,617.
Hasegawa, H., NEC Corp, 2017. Operation management device, operation management method.
U.S. Patent 9,778,972.
Hasegawa, H., NEC Corp, 2017. Operation management device, operation management method.
U.S. Patent Application 15/340,487.
Johnstone, S., 2016. Labour and management co-operation: workplace partnership in UK
financial services. Routledge.
Khlat, N., and et al., 2016. Power management architecture for modulated and constant supply
operation. U.S. Patent 9,246,460.
Lathrop, S. and et. al., 2018. Best practices for manageme3200 words + 15 slides pptnt and
operation of large HPC installations. Concurrency and Computation: Practice and
Experience, p.e2653.
López, M. A., and et. al., 2015. Demand-side management in smart grid operation considering
electric vehicles load shifting and vehicle-to-grid support. International Journal of
Electrical Power & Energy Systems. 64. pp.689-698.
Manzini, M., and et. al., 2018. An integrated framework for design, management and operation
of reconfigurable assembly systems. Omega.78.pp.69-84.
Flake, L., Western Digital Technologies Inc, 2017. Electronic system with servo management
mechanism and method of operation thereof. U.S. Patent 9,581,978.
Morschett, D., Schramm-Klein, H. and Zentes, J., 2015. Strategic international management (pp.
978-3658078836). Springer.
Pierce, M. and Wolchyn, D., Gps Systems International Pty Ltd, 2018. Management of operation
and use of recreational vehicle. U.S. Patent Application 15/567,143.
Shiffman, S., Engfer, D. R. and Paty, J. A., eResearch Tech Inc, 2018. Operation and method for
prediction and management of the validity of subject reported data. U.S. Patent
9,881,062.
Szewczak, K., 2016. Fixed assets operation management in enterprise in conditions of the xxi
century economy. Journal Of management. (1). p.30.
Wang, S. X. and Singh, V. P., 2018. Closure to “Design Water Amount for Reservoir
Management and Operation” by Shan Xu Wang and Vijay P. Singh. Journal of
Hydrologic Engineering. 24(3). p.07018013.
Wang, S. X. and Singh, V. P., 2018. Design Water Amount for Reservoir Management and
Operation. Journal of Hydrologic Engineering. 23(4). p.04018006.
White, P.R., 2016. Public transport: its planning, management and operation. Routledge.
Online
14
Books and Journals
DiFazio, R. A. and et. al., 2016. Bandwidth management (bwm) operation with opportunistic
networks. U.S. Patent Application 15/057,034.
Goel, A., 2017. Planning and management of operation theatre complex. Journal of Evolution of
Medical and Dental Sciences. 6(30). pp.2471-2473.
Haralson, P. S., and et. al., 2017. Electronic system with head management mechanism and
method of operation thereof. U.S. Patent 9,842,617.
Hasegawa, H., NEC Corp, 2017. Operation management device, operation management method.
U.S. Patent 9,778,972.
Hasegawa, H., NEC Corp, 2017. Operation management device, operation management method.
U.S. Patent Application 15/340,487.
Johnstone, S., 2016. Labour and management co-operation: workplace partnership in UK
financial services. Routledge.
Khlat, N., and et al., 2016. Power management architecture for modulated and constant supply
operation. U.S. Patent 9,246,460.
Lathrop, S. and et. al., 2018. Best practices for manageme3200 words + 15 slides pptnt and
operation of large HPC installations. Concurrency and Computation: Practice and
Experience, p.e2653.
López, M. A., and et. al., 2015. Demand-side management in smart grid operation considering
electric vehicles load shifting and vehicle-to-grid support. International Journal of
Electrical Power & Energy Systems. 64. pp.689-698.
Manzini, M., and et. al., 2018. An integrated framework for design, management and operation
of reconfigurable assembly systems. Omega.78.pp.69-84.
Flake, L., Western Digital Technologies Inc, 2017. Electronic system with servo management
mechanism and method of operation thereof. U.S. Patent 9,581,978.
Morschett, D., Schramm-Klein, H. and Zentes, J., 2015. Strategic international management (pp.
978-3658078836). Springer.
Pierce, M. and Wolchyn, D., Gps Systems International Pty Ltd, 2018. Management of operation
and use of recreational vehicle. U.S. Patent Application 15/567,143.
Shiffman, S., Engfer, D. R. and Paty, J. A., eResearch Tech Inc, 2018. Operation and method for
prediction and management of the validity of subject reported data. U.S. Patent
9,881,062.
Szewczak, K., 2016. Fixed assets operation management in enterprise in conditions of the xxi
century economy. Journal Of management. (1). p.30.
Wang, S. X. and Singh, V. P., 2018. Closure to “Design Water Amount for Reservoir
Management and Operation” by Shan Xu Wang and Vijay P. Singh. Journal of
Hydrologic Engineering. 24(3). p.07018013.
Wang, S. X. and Singh, V. P., 2018. Design Water Amount for Reservoir Management and
Operation. Journal of Hydrologic Engineering. 23(4). p.04018006.
White, P.R., 2016. Public transport: its planning, management and operation. Routledge.
Online
14
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