Management and Operations: Key Functions, Approaches, and Importance

This presentation discusses the key operational functions and approaches in management and operations, with a focus on McLaren automotive. It explores the importance of operations management in achieving business objectives and highlights the factors of the business environment that influence operational management. Recommendations are provided for McLaren Automotive based on the findings.

Management and operations

Table of Content
• Introduction
• Key Operational functions of an Organisations
• Key operational approaches to operations management
• Importance and value of operations management in achieving business objective
• Factors of business environment
• Recommendations
• Conclusion

This presentation is based on management and operations which
are essential for all organisation to ensures efficiency and better
control over various activities to have enhancement in its
productivity and profitability. The organisation selected for this
presentation is McLaren that is a British automotive manufactures
and also associated with Formula one racing. Following
presentation includes a description about key approaches of
operation management and role played by leaders and managers.
Introduction

The Key operations of an organisation are mainly associated with effective planning,
organising, coordinating and controlling all the resources and activities in an organisation
which are necessary for efficient production of goods and services with minimum and
optimum use of resources.
Key Operational functions of an Organisations

McLaren automotive is a British car manufacture company the main and key operational
functions of which are as follows:
• Marketing- This operation of McLaren automotive is associated with analysis of current
market situation and promotion of its product.
• Production and Operations- This function is associated with conversion of raw material
into a desirable product.
• Finance- This operational function is related with management of monetary aspects and
funds of an organisation.
Continue…..

There are various key operational approaches that can be used by used by an organisation to
produce better quality product and to remove the wasteful activities in its production
process and to achieve the objective of perfection and excellence in its business operations.
Key operational approaches to operations
management

Some of these approach which are used by McLaren automotive for effective operations
management and value creation are explained below:
• Total quality management (TQM)- It is basically a continuous improvement process that
focuses on enhancing efficiency of an organisation through identifying and eliminating
errors and flaws from all operations that include manufacturing, management of supply
chain, maintaining efficiency and skills of employees through training and development,
etc.
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• Just in Time (JIT) – It is basically an inventory control and management approach that at
align procurement of raw material and inventory orders from suppliers directly at the time
of production schedules.
• Kaizen- It is basically a part of lean manufacturing approach that facilitates improvement
in quality, productivity, workplace culture and safety through applying small continuous
change that lead to major improvements and results over time.
Continue…..

Six Sigma
Use of six sigma is made by an organisation to have a collaborative team effort to achieve overall
improvement and enhancement in performance of organization together with systematically
reduction in amount of waste. There are 6 main principles of Six sigma that can be adopted by
McLaren to have efficient operation and better value creation for customers:
Define- At this stage the value needed and expectations of customers are define and some benchmark
and targets are set for all employees.

The various tools and approaches of operation management plays a crucial role in achieving business
objective of McLaren automotive through facilitating following benefits and value for organisation:
• Product quality- The use of TQM approach better product quality through facilitating a customer based
approach and also lead to factual decision making in McLaren automotive which enhance efficiency of its
operations.
• Waste reduction- Use of operation management technique facilitates a better control and check over
various activity and operations thus, makes an organisation able to detect and eliminate flaws and defects
for its production operations to have optimum utilisation of resources.
Importance and value of operations management in
achieving business objective

Customer satisfaction- The ultimate goal of every
organisation is to facilitate maximum level of customer
satisfaction to have better productivity and profitability
that can be achieved by a company through proper
adoption of operation management approach.
Continue…..

There are various factors in a business environment that directly or indirectly create a
impact or influence the operational management and decision making of an organisation.
Some of these business environment factors leading an impact on operational
management and decision making of McLaren automotive are as follows:
• Corporate social responsibility (CSR)- It is basically a self regulating business model
that aim at making an organisation socially accountable and responsible in order to
manage and enhance benefits for society and environment while boosting their brands
image.
Factors of business environment

• Culture and value- The basis beliefs, principles and ideologies of an organisation form
its overall culture that directly effects the moral and performance of employees.
• Ethics and sustainability- Ethics basically determines the rules and principles on which
an organisation work to have a higher level of sustainability and growth.
• Stakeholders and stakeholders expectations- There are various stakeholders of an
organisation that includes its customers, employees, directors, business associates,
suppliers and all other associated party.
Continue…..

On the basis of above presentation following recommendations can be made for McLaren
Automotive:
• Use of TQM approach is recommended for McLaren Automotive as it facilities a factual
decision making approach together with customers focus that lade to production and
delivery of better quality product to satisfy and attract larger number of customers.
Recommendations

On the basis of above presentation it can be concluded that there are various operational
functions like production, marketing and finance that are necessary for an organisation to
achieve its goals and targets. Use of various operational management approaches are made
by an organisation like TQM, just in time, etc. to achieve its objective of better quality
product and waste reduction to have higher productivity and profitability. Their are various
business factors like CSR and sustainability that create influence on decision making and
operational management.
Conclusion

• Copacino, W. C., 2019. Supply chain management: The basics and beyond. Routledge.
• Kumar, S., Mookerjee, V. and Shubham, A., 2018. Research in Operations Management
and Information Systems Interface. Production and Operations Management. 27(11).
pp.1893-1905.
• Xu, L., Peng, X. and Prybutok, V., 2019. Formative measurements in operations
management research: Using partial least squares. Quality Management Journal. 26(1).
pp.18-31.
References

Thank you