Operation, Logistics and Supply Chain Management - Assignment

Added on - Nov 2020

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OPERATION, LOGISTICS
AND SUPPLY CHAIN
MANAGEMENT
Contents
INTRODUCTION..........................................................................................................................2
Critical review of operation, logistic and supply chain management theories............................2
Analytic discussion with application of theories in Watford General Hospital..........................5
Triple bottom line...........................................................................................................................7
CONCLUSION AND RECOMMENDATION..............................................................................8
REFERENCES..............................................................................................................................10
1
INTRODUCTION
Operation management is the field of management obsessed with creating and controlling
procedures of manufacture and recreating business transactions in production of products and
services. On other hand, logistics is normally implementing complex function of a company. It is
division of supply chain management that plans, tools and organizes the capable, impressive
forwards as well as reverse flow and storeroom of products and services(Lang and Chahal,2018).
This study is based on Watford General Hospital. This assignment will critically review of
different theories of operation, logistics and supply chain management. It will analysis and apply
appropriate solutions of operation management in the organization.
Critical review of operation, logistic and supply chain management theories
There are various theories relating to operation, logistic and supply chain management
which are as follows:
Operation management:Operation management refers to managing the resources of
organizationinordertoutilizethemproperlytoachievetheobjectivesoforganization
effectively and efficiently. Operation management theories include total quality management ,
six sigma etc.
Total quality management :This theory of operation management focuses on improving
the quality of product, process or services in order to fulfill customer satisfaction.Total quality
management assist in improving the quality of the organization products and services by
improving the performance of its employees (Hugos, 2018). This theory lays emphasis on
various principles for improving the quality of organization products and services. These
principles include Customer satisfaction, employee involvement, process centered and integrated
system etc. This theory of operation management helps in making effective decision for
improving the quality of its products and services. Organization can improve the quality of
products and services to improve its performance and profitability by implementing total quality
management theories.
Total quality management theory of operation provide various benefits to organization
which consist of Cost reduction , customer satisfaction, defect reduction etc. Cost is reduced by
implementing total quality management in different areas of operation such as scrap rework,
field services etc (Swink and et.al., 2017). This reduction in cost assists in increasing profitability
of the firm.TQM helps the organization in providing high customer satisfaction by providing
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customers with high quality products and services. This theory also assist in reducing defect
which leads poor quality of products and services.
On the critical not it has been evaluated that TQM provide various disadvantages to
organizationsuchasexpensivequality,discouragescreativity,employeeresistanceetc.
Implementation of TQM is expensive as it requiresadditional training cost, team- development
cost, infrastructural cost etc.TQM also provide disadvantage of creativity and innovation as it
focuses on the improving quality and not on innovation and creation (Beske and Seuring, 2014).
TQM also provide disadvantage as implementing this theory require changing the mindset and
attitude of employees towards their job responsibilities.
Logisticsmanagement:Logisticmanagementisacomponentofsupplychain
management which is used for identifying customers demands in order to meet them with the
help of planning, controlling and implementing effective movement and storage of information
and products and services to the point of consumption.
There are various theories of Logistics management which includes inventory management
theory etc.
Inventory management theory:This theory is implemented in the organizationto
manage the inventory of the firm to utilize the inventory in an effective and efficient way to
reduce wastage of inventory. Inventory management theory assist in maintaining the level of
inventory required by the firm by analysis the demands of the products and services in the
market to reduce wastage of inventory (Schönsleben,2016). This theory of logistics helps in
controlling the flow of inventory according to its demand in the market. Inventory management
helps in increasing the profitability of organization and also assist in reducing chances of
inventory obsolesce.
Inventory management system helps in reducing the wastage of inventory by managing
the level of inventory according to the demands of its in the market. It helps in protecting firms
against variation in raw material delivery time (Prajogo, Oke and Olhager,2016). This theory
also assists in scheduling production and avoids shortage of material and duplicate ordering. On
the critical note it has been evaluated that this theory cannot eliminate the business risk it just
assist in maintaining stock level in the firm. Inventory management theory requires proper
forecasting and estimates of the future demand which may no provide correct outcomes.
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