Challenges and Techniques in Operations Management

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This report discusses the challenges faced in operations management and provides techniques to overcome them. It focuses on the case of BinHam electro mechanical LLC in Abu Dhabi, UAE. Topics covered include the relationship between operational areas, challenges in operations management, techniques to resolve operational challenges, and the role of project management in achieving organizational objectives.
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Declaration
“I, declare that I am the sole author of this project and the work is a result of my own
investigations, except where otherwise stated. All references have been duly cited”.
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EXECUTIVE SUMMARY
Operations administration deals with addressing day-to-day as well as critical market
problems regularly. Project management refers to the planning, coordinating, empowering, and
attempting to control funds to accomplish concrete objectives. Both project and operational
management are crucial for companies in order to manage different kinds of activities and tasks.
In the project report a company has been chosen that is BinHam electro mechanical LLC which
is located in Abu Dhabi, United Arab Emirates. The project report summarizes opportunities and
challenges of business management and project and operations management. Along with various
kinds of techniques and methods are discussed which are being used by companies in order to
overcome from operational management challenges.
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Contents
EXECUTIVE SUMMARY.........................................................................................................................2
MAIN BODY..............................................................................................................................................4
1. Brief description of the organization................................................................................................4
2. The relationship between various operational areas of an organization...........................................5
3. Challenges in Operations management............................................................................................6
4. Techniques that can be used to resolve the operational challenges..................................................8
5. Role of project management within the organizational context.....................................................10
6. Typical issues and approaches in effective Project Management...................................................11
7. How project management can contribute to achieving organizational objectives..........................13
CONCLUSION.........................................................................................................................................14
REFERENCES..........................................................................................................................................15
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MAIN BODY
1. Brief description of the organization.
Bin Ham EM was founded in 1988 by Sheik Musallam Salem Bin Ham Al Amri and
Eng. Victor Durzi as a manufacturing electro mechanic corporation (About Bin Ham EM,
2019). For the very first decades after its foundation, Bin Ham EM carried out
complicated electro-mechanical ventures, including the rehabilitation of working power
and water stations and the resettlement of plants across the UAE. Over time, the business
has grown to incorporate the following branches and now hires more than 2,000 skilled
employees to work on different initiatives in the relevant fields:
Infrastructure and Civil Division
Section of Electrical, Electronic & modulation
Landscape Division
The Exchange Group
Bin Ham EM is usually graded as an 'Initial' or 'Second' provider in the below fields:
o Main Routes,
o Sewage treatment station,
o Main sewage & Networks group,
o Major water networks,
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o Key channels of drainage,
o Electrical & structural & modulation work,
o Animal Feed Supply
So these are the main functions which are being provided by the above company. From
above activities this can be assessed that majority of activities of this company are related
to construction and civil projects and Trading. The majority of services are provided by
company in the area of Abu Dhabi.
2. The relationship between various operational areas of an organization.
An organization is a group of processes, interconnecting, and all departments contributing
together to satisfy the company strategic aims. Some of those procedures will be within
the operations function, and could contribute directly to the production of its merchandise and
services.
Operating and a system management is the ability of managing the assets ,people, materials
and procedures that produce merchandise and services for the clients and gives a monetary and
or social return for his or her stakeholders. It’s very crucial activity for any company.
All organizations have “operations” due to the fact all organizations produce products/services.
An effective operations function has the potential to continue to exist in a turbulent
surroundings and the capability to maintain a constant enhance in its performance.
Each department in the organisation have an operations function that entails the usage
of its strategies to provide plans, policies, reviews and services.
Every manager in all departments of a company is an operation manager, they should be an
excellent provider to their customers (Slack & Brandon-Jones,2016).
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There are a range of activities and operations which are linked to different departments of
companies. Herein, below detailed analysis is done in such manner:
Operation management- is the administration of operating strategies to reach the best
possible degree of performance of the product/service (Alnaggar and Pitt, 2019).
It involves planning, organizing, coordinating, and controlling all the resources had
to produce a company’s services efficiently. They should meet milestones and
expectations for a given amount of time.
Marketing department function: The marketing function helps the organization to
understand products/services that are potentially effective and to encourage them by
distinguishing them from their competitors in the market. The marketing channels
manage downstream relationships, connecting the organisation to the end user/Client by
focusing and meeting their needs, wants in a profitable and competitive manner ( Irina
V.Kozlenkova, G.Thomas M.Hult, Donald J.Lund, Jeannette A.Mena, Pinar Kekec,,
2015).
Purchasing department Function: serves as the link between the firm and its suppliers
They procure goods and services designed to meet operational needs while providing the
highest possible value
Logistics Department Function: Plans warehouses for efficiency in each operations and
capacity. Organizing Transportation movements and managing for services as necessary
Finance Department Function: has its business operations to plan, organize, audit, pay
and regulate the operations of the company. The finance manager generates the
company’s financial statements ( Irina V.Kozlenkova, G.Thomas M.Hult, Donald
J.Lund, Jeannette A.Mena, Pinar Kekec,, 2015).
Human resource department- Relevant and important considerations in the recruiting of
professional qualified and required to train to conduct efficiently specific tasks and
functions in market organizations (Bushuyev, Bushuiev and Kozyr, 2019).
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Marketing seeks to educate HR practitioners of the role they should use to fulfill their
desires and expectations within the context of Bin Ham EM
Bin Ham Has effectively manage all the activities by combining these functions, processes, and
ultimately resulting in bene- fits such as value creation, increased efficiencies, and enhanced
customer satisfaction. Deficiencies in any one of these four domains will undermine the
effectiveness of the entire supply chain.
So it is indicating that different functions are interrelated with each others. This becomes
possible because each functions and activities of companies are interrelated with each other. As a
result there is a huge relation between different aspects and functions of companies.
3. Challenges in Operations management.
There are range of activities and functions under operation management. Each of them
contributes in an effective manner. Herein below some key challenges of operation
management are mentioned that are as follows:
Staying competitive- It is one of the main issue of operational management. This is so
because business environment is variable and due to which it becomes difficult for
various kinds of functions of operation management to retain competitive (Shirley, 2020).
So this is a prime challenge of operational management for companies like above
discussed. Such as in the Bin Ham EM this is difficult for them to sustain competitive in
the external environment due to changes in different factors.
This type of issue can be solved by applying below mentioned concept that is as follows-
Quality management- Management of quality guarantees reliable structure, good or
service. This comprises of four primary components: quality preparation, quality
assurance and changes in efficiency (Tang and Cheng, 2019). Quality control
concentrates not only on the standard of goods and services but also on the methods to do
this. If above company will produce products by ensuring proper quality then this will be
easier for them to stay competitive in long run.
Managing current external environment- Another issue in operation management is
managing current external environment. It is so because under external environment
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different kinds of factors are included such as political, economical and many more. Due
to which it becomes difficult for companies to coordinate with external environment. In
the above Bin Ham EM, they the issue of managing external environment due to various
changes in the factors.
Productivity- The term productivity can be defined as total units of products that a
company produces during a particular time frame. It is also an issue in the operation
management (Babar, Oracle International Corp, 2019). This is so because productivity
needs a proper management of various kinds of activities and due to variation in external
environment it becomes difficult to produce in a better way. In the above company they
face it because of lack of effective operational management that leads to lower
production.
Need to improve process quality- This is essential for companies to enhance process
quality. In the aspect of above company this is important for them to manage proper
quality of their services and activities. Due to variation in external environment
companies face the issue of maintaining quality of services and products. In the above
Bin Ham EM Company, their service quality can be affected due to poor efficiency of
operational management tools.
Customer satisfaction- It is also a main issue for operational management. It is so because
customer satisfaction is a key aspect and companies want to satisfy their customers so
their sales can be raise. Though, functions of operational management help in better
customer satisfaction but due to change in external environment factor it becomes
difficult for them to satisfy customers. In the context of above Bin Ham EM Company,
they face the problem of satisfying need of customers due to change in their perception
and other factors.
In order to satisfy customers need and demand, Bin Ham Company can apply below
mentioned theory which is as follows:
Theory of constraints- Constraints theory is a technique to determine the most significant
limiting factor (i.e. restriction) to accomplish a goal and then continuously strengthen it
until it is no longer the major bottleneck. The cap is sometimes referred to in engineering
as a bottleneck. There are five steps under this theory that are as:
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Focusing Step 1: IDENTIFY the system's constraint- To strengthen any chain link is a
waste of time and energy (excluding the weakest). Likewise, the overwhelming number
of attempts to "transform" the company do not produce further income for owners,
consumer enjoyment or employee satisfaction. That is because certain ventures will not
concentrate on the institution's restrictions.
Focusing Step 2: EXPLOIT the constraint- The performance of the limitation controls or
reduces the production of the whole organization (TRIANGULAR, 2019). Therefore, it is
important that we get it out as soon as we can. Maximize limitation use and efficiency
(non-use and output of non-constraints). Rather than having to buy more constraints at
once, we should first learn to make use of the funds we have already more productively
(by purchasing devices, employing people, expanding the marketing budget, etc.).
Focusing Step 3: SUBORDINATE everything else to the constraint- By definition, any
non-constraint has greater capacity than the restriction itself to produce. Left unregulated,
this contributes to excessive WIP inventory, prolonged distribution times and regular
firefighting. Therefore, more than the restriction can handle is necessary to prevent
output. The launch of raw material according to the capability of the restriction is shook
in a factory environment.
Focusing Step 4: ELEVATE the constraint- Only by investing in expensive tools / land,
recruiting people, or the like, will the system capacity be increased.
Focusing Step 5: PREVENT INERTIA from becoming the constraint- The weak
connection may not stay weak once raised. Consider collecting new money to maintain
the old restriction, based on the long-term cap. An entirely new form of system
management is needed by a new restriction (Mel, Carniello and D’Alpaos, 2020).
Intern departmental issues- In the companies, a range of functions and departments are
included and each of them is interrelated with each others. There can be different kinds of
issues in the departments such as lack of coordination among staff members and many
more (Owusu, Chan and Shan, 2019). So it is also a main issue under operation
management. In the above company, their internal departments are different from each
other because they are involved in construction sector and as a result they face this issue.
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Getting right talent- Another issue in the operation management is related with getting
right talent. Basically, it is essential for companies to choose a right person for job and
due to lack of information about selection process companies face problem of getting
right people for right job.
Technological issues- The term technological issues can be defined as that problem that
occurs because of lack of modern technology in current operations. It is also a main issue
under operation management. In the Bin Ham EM Company, they do not have enough
advanced technologies which lead to this operational issue.
4. Techniques that can be used to resolve the operational challenges
It is possible to resolve problems in operation in part and that issue has repeatedly
manifested itself in genetic polymorphisms that make people think people are dealing
with numerous problems. Herein, below a way to resolve issues in operational
management is mentioned in such manner that is as follows:
Focusing on Root Cause(s) and not impacts- When attempting to better efficiency, it is
very helpful to concentrate on the impacts that are most noticeable in the institution.
Unfortunately , it's not enough to shout, 'Stop shipping late! "To solve the distribution
question — if it were, each manager should have tackled the issue at some stage.
Reducing all root causes- If only one root cause of a multi-cause issue is defeated, the
issue will be restored shortly and maybe slightly change to a new and different issue.
When firms conduct a review of our underlying cause, companies need to understand all
the underlying causes and draw up a plan to deactivate each of them to ensure that this
problem is not recurring.
Doesn’t Mistake Containment for Resolution- It should be encompassed as soon as an
organizational activity is ascertained (Banerjee, Ray and Ghosh,, 2020). Sustainable
immediate measures should be developed and tested to inform people and to work
together to find a shorter term plan to achieve that the problem does not escape the
immediate area Very often, this interim measure can be implemented for far too long
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whereas other emerging issues are addressed. Be careful to take mitigation steps rather
than disasters to mitigate crises, but don't require mitigation to stay accepted.
Audit Results of Problem-Solving- If an issue in the operating condition has been
"resolved," it should initiate a regular and planned resolution evaluation to make sure it is
genuinely fixed. An autopsy should also be required to know why good things worked
and why mistakes were inefficient. In order to make this effort successful, blunt honesty
and emphasis on the method are necessary.
Don’t Over Adjust- Managers that resolve issues may tend to make instant modifications
if they learn that the issue reappears following a change to resolve a problem. Note that
the average period to implement strategies is often longer than the appearance duration.
So when the issue is solved and the method is altered, other issues may occur, especially
if all root causes remain unintended. This may lead to the containment policy being
avoided. In this instance, it is important to find out what mistake happened due to
incompetent restraint, as the new method is still defective. For the final resolution, the
emphasis on the root cause of failure is crucial.
Value chain optimization- A value chain, a pattern of operations which turn the raw
resources, skills and resources capacities into final goods and services that are seen as
worthy by some consumers, is at the center of any firm's management. The use of value
chain enhancement as a tactic for solving problem is a great strategy for businesses that
require a sound problem solving approach that everybody in an organization can
understand easily. It is fairly straightforward to use the supply chain structure to resolve
issues. The reason for the work is that the consumer adds value. An organization's
potential problems include actions that are not generating value, activities that deliver
less than expected value, or activities that do not take place (but should be). This will
build a long list, so do not panic – not all future issues will be overcome. Priority was
given to those who create the most exponential value at the lowest expense.
5. Role of project management within the organizational context.
Project management- Project management is the process of guiding a company's efforts
towards objectives and achieving performance goals at a given time. Project manager's
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main aim is to maintain all the project objectives within these limits (Li, 2019). The key
challenges of time, distance, efficiency and budget involve integrating and implementing
the required inputs to meet previously defined goals. The second difficulty is to insure
that they are optimized.
Project management seeks to generate a full project that meets the goals of the customer.
In many cases, the project mainly determined is to formulate or reform the customer brief
in order to achieve customer goals. Once the details are usually defined, all the choices of
other project participants – such as project managers, designers, contractors and sub -
contractors – should also be affected. Undefined or prescribed project man too firmly. In
the aspect of Bin Ham EM various kinds of civil projects are taken by them. Herein,
below role of project management is mentioned that are as follows:
Define a Clear Project Plan and Process- The more complex the initiative becomes, the
more daunting the organization would be. Therefore, it is necessary to schedule properly
and to handle projects. A clear plan and a procedure from the start to the close is the main
function of the project management to prevent misunderstandings. Such as in the above
Bin Ham EM Company, their project management team gets able to know about clear
plan and process of project which they precede.
Establish Plan and Schedule- After a project timetable has been decided, the training
required to avoid delays is inculcated. The proposal provides a straightforward roadmap
to a pre-determined phase via its life cycle (Horváth, 2019). These all aspects are become
possible only because of effective project management. As in above company, their plans
and schedules are being scheduled in accordance of project management.
Teamwork- Through the advantages that result with sharing and understanding of skills,
people are engaged in a project team. It encourages team members to work together on a
proposal. As in the Bin Ham EM Company, their employees work as a team in
accordance of project management.
Maximize Resources- Human and financial capital is well-known to be costly. Daily
monitoring and project risk control insure that all services are available cost-effectively
and reliably.
Keep Control of Costs- Some projects can incur significant costs depending on the
development of the work. It is therefore important that the budget is monitored. The
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implementation of project management practices facilitates overriding budget risks. The
project manager of Bin Ham EM Company keeps overall cost of project lower than
budgeted cost.
Build on Knowledge- As businesses invest in further ventures, further expertise can be
acquired over time. Project management provides companies with a knowledge gain and
able to strengthen upon both expertise and experience.
Manage Quality- It is important that results are of the highest quality. Standards are
established, regulated and maintained by project management. This leads to a good
product / service and a positive customer experience. Different projects of above Bin
Ham EM Company are completed under proper quality management that becomes
possible because of project management.
Continuous Oversight- Methodologies of project management make sure that institutions
take control of ongoing processes to ensure that they are well on path within the spending
plan. Project results should be well implemented to ensure that the status of the project is
not lost. A single failed experiment might not seem an excellent thing to the corporation;
however, the significance of project management rises when we talk about big enterprises
with several projects in the works.
6. Typical issues and approaches in effective Project Management.
It's constant task to manage projects. There are various types of project management
problems commonly faced by project managers (Van Dongen, Frunt and Martinetti,
2019). Here is a list of difficulties in the project that have caused the project failure:
Keeping team on same page- One big obstacle for project managers is to handle a
massively extended squad. If you keep the team involved, it's interactive. Each
participant of each team will know what's happening, what they have to do and
what they are working forward into.
Approach to solve- This issue can be resolve by implementing proof hub
application in the project management team. Proof Hub is the collaborative
administration app for the projects, distant teams and customers, regardless of
whether they are large or complex.
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Poorly defined goals and objectives- Poorly specified goals or targets without
goals placed a project at risk. The definition of objectives is an important step in a
project, which is a big challenge. The project managers may not know when to
expect (Ahmadabadi and Heravi, 2019). The project is destined to fail when aims
and goals are not strictly established. If nobody understands when, how because
when the project is going to happen, so a lot of uncertainty and turmoil will result.
Approach to solve- The aim is designed to develop a proposition and then to set
targets that would contribute to the objective. Teams are aware of their goals and
can define the goals of how, why and how to plan projects. That is why a kick-off
conference is suggested and project preparation software is used to identify
specific priorities.
Unrealistic deadlines- It is very much unreasonable to project time limits and
expectations that most teams or project managers struggle with, and clients and
stakeholders. Owing to arbitrary 'initial time constraints,' several project periods
fall eventually. When project team members live in a world that is aggressive by
competition and targets that are not driven by measured business needs or are
unreasonable or unattainable. From then on, it's a pathetic effort to fit the
specifications of the team at the already set limits.
Approach to solve- Project managers can deal with project time frames and other
problems pertaining to impeccable planning, alternate solution analysis and
correct interaction of progress in real time to project respondents and other key
decision makers. Event planning, timetable management and tracking key
milestones with a project calendar.
Finding right project management software- The right technology for the
budgetary project team to be ingenuity can be identified tediously (Hao, 2019).
Good project management software ensures project planning and visibility for all
projects. Project software configuration Often, such a device, in particular those
that suit the requirements, is difficult to locate.
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Approach to solve- In order to solve this issue, it is essential to choose right
software which is proof hub software.
Steps in project life cycle: In this cycle a range of steps are included which can be applied by
above mentioned company in such manner:
Initiation- The first step of the project lifecycle is the implementation. The interest and viability
of the proposal was evaluated in this sense. In general, project management uses two appraisal
methods to determine whether a project is to be carried out:
Business case document
Feasibility study
Planning- If the green light is provided for the project, a solid schedule would be needed to direct
the team to maintain it on track and on budget (Tan and Rui, 2019). A well-written project plan
offers guidelines for the procurement of personnel, funding and materials needed. The project
strategy includes the Group guidelines for product production, risk control, acceptability, and
stakeholder engagement and vendors control.
Execution- It is the most often correlated process of project management. All is the construction
materials the consumer please. Team leaders do that by allocating money and by concentrating
their duties on team members.
Monitoring and control- Monitoring and monitoring is often related to operation, and sometimes
they exist concurrently. The teams must continuously monitor their own development when
executing their project plan.
Closure- The teams complete a project when the completed project is delivered to the client,
stakeholders are informed and distribution of resources to many other ventures. This crucial step
in the life cycle of the project enables the project team to evaluate, report and take another step
and to create stronger procedures and championship players using project design errors and
achievements.
These above mentioned steps can be applied in above company so that they can complete their
project in an effective manner.
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7. How project management can contribute to achieving organizational objectives.
The role of project management is unexceptional. In the context of achieving
organization goals, project management is too crucial (Zhang and Fang, 2019). Such as in
the above Bin Ham EM Company, their goals being achieved by help of project
management in such manner:
Leadership- The team will be like a ship without a rudder without project
management; it can travel without guidance, power or intention. Leadership
enables and makes it possible for team members to do their best. Project
management includes direction and vision, rewards, avoidance of roadblocks,
encouraging and motivating the team to perform their utmost. In an organization,
if there is a strong leadership then it becomes easier to achieve goals and
objectives. Such as in the above Bin Ham EM Company, their goals can be
achieved if they apply effective project management approaches.
Clear focus and objectives- Project management is essential as it guarantees that
an appropriate strategy is in motion to accomplish strategic objectives (Xu, 2020).
Where project management is given to the team to work together, teams are found
working without appropriate briefs without a defined methodology for project
management. Works lose direction, may have unclear or ambiguous goals, and do
not let the team know precisely what they will do or why. Such as in the Bin Ham
EM Company, they determine clear objectives that help them in achieving overall
organizational goals.
Control on quality- The management of projects is critical as it continuously
guarantees the consistency of what is produced. In fact, initiatives are usually
exposed to tremendous strain (Koontanakulvong, Long and Van, 2019). Tasks are
overlooked, deadlines compressed and operations hurried with no committed
project manager who has help and buy-in from senior management. The result is
poor performance because quality management is not in place.
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CONCLUSION
On the basis of above report this can be concluded that operation and project
management is too beneficial for companies. The report concludes that operation management is
linked to various kinds of operations of a business entity. As well as various kinds of challenges
and way to overcome these issues are also articulates in the report. The further part of report
concludes that role of project management and issues in the project management. In addition, the
end part of report concludes that project management contributes in an effective manner in order
to achieving goals and objectives of business entities.
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Online:
About Bin Ham company, 2020. [Online] available through:< https://www.binhamem.com/ >
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