Key Approaches To Operations Management

This presentation discusses the key approaches to operations management, including lean management, total quality management, just in time, and six sigma. It also explores the significance of operational management in improving quality and performance. The presentation highlights the factors within the business environment that can impact operational decisions. Recommended for students studying operations management.

Operations Management

Key Approaches To Operations
Management
There are various approaches to operational management which
can be adopted by Procter &Gamble for bringing improvement in
quality of products or services. These approaches are :
Lean management : It is considered to be as an effective
approach which enables company to bring continuous
improvement in products or services. Lean management approach
can be adopted by Procter &Gamble as this will assist an
enterprise in bringing improvement in quality of products or
services

Total quality management : This approach to operational management assist company in bringing
improvement in quality as well as performance. Total quality management approach can be adopted
by Procter &Gamble as this will assist business entity in providing high level of satisfaction to
customers. Role of leader is to encourage all workers to participate in improving procedure, products,
services and the culture in which they work.
Just in time : it is an effective approach to operational management. Just in time approach to
operational management supports in minimizing the wastage. This approach states that by
concentrating on value added procedures, an enterprise can bring improvement an organization can
achieve high volume as well as quality of production. Role of leaders and managers in an
organization to provide all the resources which are required by workers for performing operational
activities.
Six sigma: This is considered to be as the best approach to operational management. This approach
can be adopted by Procter &Gamble as it will aid business entity in eliminating defects in products. It
will also support firm in reducing costs and helps in saving time. Function of manager in an
organization is to identify area of improvement. Role of leader is to control improvement system.

Significance as well as value of Operational
Management
The operational management has assisted Procter &Gamble in accomplishing its
business objectives of increasing sales and profitability. An effective operational
management has assisted an enterprise in increasing productivity which is very
much crucial for maintaining balance between demand and supply. It has
supported business entity in increasing working efficiency which is very much
essential in order to make quick delivery of products as well as to provide high
level of satisfactions to customers.
Leaders in Procter &Gamble company can improve efficiencies of operations can
formulate as well as implement supply chain strategies, as this tactic will assist in
increasing productivity as well as minimizing risk.
In addition to this, It is required by both manager or leaders in an enterprise to
provide training to employees those who are engaged in operational activities.

Factors within the business environment
Business environment consists of internal as well as external factors. The changes in internal as well as
external variables can have both positive and negative effect on the operational management. It has
direct influence on the operational decisions taken by the managers or leaders in an organisation. Some
External variables' which might have influence on leaders decisions and impact on operational
management of Procter &Gamble these are :
 Economic factors : It includes economic downturn which has direct as well as significant effect
on the financial performance and buying power of organization. In addition to this, changes in
interest rate has great effect on cost of financing capital investment for business operations.
 Technological factors: Changes in this factor effects all aspects of business operation such as
production , manufacturing of goods or services. Advancement in technology has supported
Procter &Gamble in bringing improvement in procedure as well as quality of products or services.
It aided firm in reducing cost and help in eliminating defects in goods.

 Political and legal factors : Changes in the policies or laws by the government have
significant effect on business operations. For instance, the rise in taxes of commodity
can lead to the increase in the cost of production ion such case management might
delay the operational plan related to development of specific product.
 Social cultural factors: Sudden or short-term changes in demand have impact on
capacity utilization, productivity etc.
 Environmental factors: It involves the occurrence of natural disaster which can have
great effect on the operational plan made by manager or leaders in Procter &Gamble.
For instance, If organizations or their suppliers succumb to a natural or artificial
disaster, the operational plans are put on hold or scrapped. In addition to this,
Availability of resources as well as raw material in surrounding during the particular
season can have influence on operational plan of company.

Different factors effect business
environment and wider community
 Economic factors effect both business
environment as well as wider community. For
instance , decrease in individual income,
economic crisis in the nation have direct
effect ion the buying power of company and
also consumer. Changes in economic
variables have great impact on the demand for
products offered by organisation. It also has
effect on the profitability of firm.

REFERENCES
 Hübner, A., Amorim, P., Kuhn, H., Minner, S. and Van Woensel, T., 2018.
Retail operations.
 Hill, A. and Hill, T., 2017. Essential operations management. Macmillan
International Higher Education.
 Grant, D.B., Wong, C.Y. and Trautrims, A., 2017. Sustainable logistics and
supply chain management: principles and practices for sustainable operations
and management. Kogan Page Publishers.
 Slack, N. and Brandon-Jones, A., 2018. Operations and process management:
principles and practice for strategic impact. Pearson UK.
 Choi, T.M., Wallace, S.W. and Wang, Y., 2018. Big data analytics in operations
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