Role of Operation Management

The provided report assesses the operational plan and process map regarding development of products and services. It highlights the significant role of operation managers in formulating strategies and plans that help the organization sustain in a competitive environment. The evaluation of the role of operation management in strategic management and supply chain has been discussed.

Operation Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Critical components of operations management function...........................................................1
Applying and articulating the principles of decision making in operational plan.......................7
Evaluating role of operation management in the strategic management of organisation and
supply chain.................................................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Operation management deals with the management of overall operations of business. It is
considered as an essential department of the organisation which monitors, administers and
controls the operations and processes of business organisation. From procurement to distribution
of goods and services, operation managers plays crucial role in the organisation. In accordance
with this context, the present study will aid in providing operational plan and process map of
new product launched by Apple. Critical components of operations management are going to be
discussed in the report and relationship between decision making and value chain will be
assessed as well. Furthermore, evaluation, application and articulation of principles of
quantitative methodologies will be addressed in this report. Also, critical evaluation of role of
operation management in strategic management and supply chain of the organisation will be
evaluated here.
Critical components of operations management function
Operations management is the process of designing and controlling the process of
designing and producing business operations while producing the goods and services. Operations
management planning helps in developing plans and strategies that can allow the entity to seize
all the opportunities and challenges that come up to the organization during its living tenure. In
order to achieve the aims and objectives of the business effectively(Kerzner and Kerzner, 2017).
It is important to draw an appropriate plan for the business that must be followed by the
management of organization for its monetary and non-monetary benefits.
Apple is America based technological company which has headquarter located in
Cupertino, California. However, in quite a short span of time, the organization is able to build its
brand, structure its management and staff as well as provide the best customer services. Apple is
involved in designing, developing and selling consumer electronics, computer software and
providing other online services to its customers. Some of the company’s hardware products
include Mac Book personal computer, mobile phones, Apple smart watch, etc. It is also involved
in offering various types of software services through its online services in the form of iTunes,
mac App Store, Apple Music and iCloud (Binz and et.al., 2012).
Aim of Operational management plan
In order to develop an operation plan, following aim can be framed:
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“To improve supply chain management program of Apple for its better reach to the
customers in Australia”.
In order to fulfil the above requirements of the aim, it is important for the company to
follow the below steps of operational management plan:
 Budget preparation
 Identified risks
 Facilities and resources available in action
 Requirement of managing staff (Van Der Aalst, La Rosa and Santoro, 2016) Communication plan
Budget preparation
Budget helps in measuring the estimated cost that will be required to implement the
enhanced supply chain in the company. It is the financial framework that is helpful in
determining the total sum spent on designing and implementing new supply chain management.
Hence, in that case, following budgetary requirements will be present with the company:
Particulars Amount (In GBP)
Procurement of material 1500
Delivery cost 2500
Transportation cost 200
Equipment cost 2000
Inventory management cost 1000
Miscellaneous expenses 800
Human resource salary 2000
Total 10,000
Identified risks and mitigation strategies
Risk is considered to be an important aspect that is to be evaluated and identified in order
to reach to the requirements and mission of operations management plan. Some of the
identification with the mitigation strategies for Apple are mentioned as below:
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 Risk of demand: It becomes difficult to identify the requirements of the customers. If it is
unpredictable or misunderstood then it becomes difficult to serve the requirements and end
demand cannot be served (Galindo and Batta, 2013).
 Risk of supply: It is mainly caused due to interruption in the flow of product. It can be due
to uneven flow of raw material or any other parts within the identified supply chain of Apple
products.
 Environmental risk: Apart from supply chain of company, there are various other external
factors that help in governing the flow of product. In this case, various economic, social,
governmental and climate factors represent which can affect the supply chain of Apple.
 Business risk: The financial stability of the suppliers also helps in ascertaining that whether
the company will be able to fulfil the requirement of its customers or not. Hence, in that case,
it becomes important to have more than one supplier of every raw material so that production
and delivery function of the company will not get hampered.
 Physical plan risk: The physical and regulatory compliances of the telecom industry can
also affect the overall supply chain of the organization. Hence, it becomes important to make
the resources and physical requirements available for its smooth run (Myerson, 2012).
In order to mitigate the risks that are involved in supply chain management of Apple, it
becomes important for company to regulate its functions in such a manner that there is always an
alternative plan present with the team. Other common options that can be adopted are mentioned
as below:
 Managing the stock
 Considering the alternative arrangements of the raw material
 Having plans for business interruptions
 Assessing the risks involved in the functions at regular intervals
 Organizing training programs for the staff members
 Using appropriate software of inventory management (Levy, Weitz and Grewal, 2012) Indulging in never ending market research activity.
Facilities and resources available in action
In order to develop an effective supply chain management system, it is important for the
organization to make certain resources available to the team and staff that are working for the
achievement of goals and mission. Hence, following resources will be required for the same:
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 Equipment
 Delivery personnel
 Inventory management application or software
 Adequate amount of funds Availability of human resources such as technical experts, delivery personnel, raw material
managers, team leaders, etc.
Requirement of managing staff
Staff plays an important role in delivering the goals and mission of the business. They are
the people who are directly or indirectly connected with the supply chain of the business. Hence,
following staff members will be required in order to serve the needs:
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Staff Roles and Responsibilities
Project manager  To prepare strategies and plan of the project, to schedule
and to decide scope
 To ascertain the requirements of resources.
 To analyse whether the requirements of the plan are
fulfilled in regular intervals
 To ensure that the team members are motivated enough to
serve the requirements of the project
 To prepare risk management plan and ensure that
benchmarked quality is achieved (Lindell, 2013).
Quality manager  To ensure that all the policies and procedures regarding
quality are achieved
 To indulge in designing quality management plans and
policies which are to be followed by the subordinates
 To ascertain quality benchmark
 To design remedial actions that can be taken to improve the
overall quality
Software developer  To understand the requirement of a software that can help
in supply chain management
 To understand and identify the issues that are present in
current software that are followed by Apple
Training manager  To create training schedules for the staff members
 To launch training programme
 To interact with the project team members to identify the
training needs and launch training accordingly
Finance manager  To ascertain the requirements of finance so as to opt for
supply chain
 To evaluate the sources from which funds can be arranged
so as to serve the requirements of operational plan
 To monitor that staff involved is following budgetary plans
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and no discrepancies are available in it
Supply chain management
team
 To ensure active participation of team members while
framing any policies
 To coordinate and cooperate with the team members
 To ensure that team members provide ideas for quality
management in supply chain management activities
Communication plan
It is important for supply chain management team to have an effective communication
plan so that all the aims and objectives of the operation management plan can be achieved
(Subramanian and Ramanathan, 2012). It will also help in conveying the strategies and
information in the most effective manner.
Way of
communication
Targets Channel Time Stakeholders Deliverable
Kick-off
meetings
Communicating
action plan of the
project and scope and
target strategies as
well.
Once in a
week
Project
manager
Delivery of
Agenda
Conduction of
team meetings
Helps in examining
the work in process
and take corrective
measures if required.
Face to
face
meeting at
conference
room or
Auditorium
Once in two
weeks
Availability
of all the
team mates
of supply
chain
management
department
Addressing
the schedule
of project
Minutes of
the
meetings
Agenda
Technical
designing
meeting
Review and
examination of
current inventory
management system
Face to
face
meeting
(generally
As per the
requirements
IT manager,
software
developer,
graphic
Meeting
minutes
Agenda
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followed by the
organization,
addressing the
technical errors that
are related to it and
implement right type
of solution on the
same.
one to one) designer and
software
designer
Project status
report
Analysing the
performance of new
addition being made
in the organization
E mail,
Skype, face
to face
meeting (as
per the
suitability)
At the end
of every
month
All the team
members of
supply chain
management
department
Project
schedules
Work
reports
Applying and articulating the principles of decision making in operational plan
Operations management plays an important role in planning, scheduling and managing
inventory that are required to fulfil the necessity of supply chain management systems. It helps in
delivering the best to the ultimate customer without hampering their interest. In this case, various
principles are required to be followed by the team members of supply chain management
department of Apple. These are:
 It is important to analyse all the available choice so that the best activity can be chosen out of
the lot. It helps in taking logical decision based upon which activity can help in gathering
maximum output and prove to be beneficial for Apple (Decision-Making : Definition,
Importance and Principles, 2017).
 A wiser decision-making activity helps in attaining heights of success. In that case, there is
must always be an alternative action plan ready with the manager. If any issue generates in
the organization, the manager can make use of alternative plan without hampering the basic
functions of the organization.
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 Apple have been able to maintain its goodwill in the market. However, the supply chain
management system followed by the organization has not proved to be effective. In that case,
adoption of inventory management software can help in serving with the requirements. It will
help in making the raw material and other products available on time which enhances the
supply chain management system.
 Enhancing the organizational structure of the company plays an important role in decision
making process of the organization. A highly rigid and centralised organizational structure
can make decision making confined only with the top-level management. Hence,
decentralizing roles and responsibilities in Apple can help in dealing with the decision-
making process quite smoothly.
 Continuously analysing the aims and objectives of operational plan and taking remedial
actions if required can increase the chances of its success.
 For effective decision making, it is important to opt for analytical tool where all the possible
alternatives of judgement are critically analysed considering all its merits and demerits. It is a
necessary aspect to initiate correct decision of all the available alternatives
 Implementing effective communication system is another important aspect to be followed by
the management. Clearly defining the roles and responsibilities and transferring information
in such a manner where it is best understood help in fulfilment of all the requirements of the
plan. It also helps in ensuring success.
Evaluating role of operation management in the strategic management of organisation and supply
chain
Strategic management refers to the practices where strategic managers and analytical
thinkers of the organisation allocates and manages the resources of the organisation in an
effective way, which enables the management to accomplish the goals and objectives effectively
and efficiently. Operations management is the process of designing and controlling the process
of designing and producing business operations while producing the goods and services.
Operations management planning helps in developing plans and strategies that can allow
the entity to seize all the opportunities and challenges that come up to the organization during its
living tenure. In order to achieve the aims and objectives of the business effectively (Slack,
2015). Each and every department and management of organisation is equally important and
every management aligned their activities with other departments in order to accomplish the task
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effectively. Operation management plays significant and prominent role in strategic management
and supply chain of the organisation (Christopher, 2016). The strategic role that operations
management plays in successful organisational performance can be seen as more organisations
move towards managing their operations from a value chain perspective which means the entire
series of organisational work activities that add value at each step beginning with the processing
of raw materials and ending with the finished product.
Operation managers plays significant role in formulating strategies and plans that helps
the organisation to sustain in the competitive environment (Heizer, 2016). As in the case of
Apple, the operation managers of Apple monitor the inventory, budget and requirements of
consumers in order to help the strategic thinkers and management of the organisation to
formulate precise plan which can benefits the organisation for long run. Furthermore, it is the
operation management of the organisation who is accountable for maintaining records related
with the production and distribution of the products and services to the customers. Strategic
managers frequently requires the needs of the record in order to formulate appropriate plan of
action (Hill, Jones and Schilling, 2014). Operation management plays crucial role in innovating
and generating ideas that can enhance the productivity and profitability of the company. These
ideas articulated to the strategic management of the company and they collaboratively formulate
action plan in order to make the desired idea into reality.
Operations management plays an important role in planning, scheduling and managing
inventory that are required to fulfil the necessity of supply chain management systems (Jacobs,
Chase and Lummus, 2014). It helps in delivering the best to the ultimate customer without
hampering their interest. In this case, various principles are required to be followed by the team
members of supply chain management department of Apple. Thus, from the above statements, it
can be understood that operation management plays significant and prominent role in strategic
management of the organisation. In order to accomplish the aim and objectives of the
organisation, it is very important for the management to work together and coordinate with each
other so that organisation performance can be enhanced.
Supply chain management is the process of delivering materials, information and
finances from supplier to manufacturer, manufacturer to whole seller, whole seller to retailer and
retailer to consumer. Operation management plays prominent role in the process of supply chain
management (Hill, Jones and Schilling, 2014). The operation managers monitors the process of
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suppliers and coordinate with them timely in order to ensure the delivery of goods and services
to the right place and on right time. Operation management plays important role throughout the
whole process of supply chain. Operation managers monitor and control the process of suppliers
and supply chain through interaction and partner’s relationship management systems. A logistics
operations manager’s workday can include running a direct distribution centre. They ensure that
incoming materials from suppliers are in good order and properly stored, and that outgoing parts
and materials for customers leave in the right quantities and in good condition.
Operation management plays significant role in the supply chain management process of
Apple. Here, the operation managers and supply manager has to coordinate with each other in
order to provide real time data and situation so that uncertainties can be prevented effectively
and efficiently (Lasserre, 2017). Furthermore, it is the duty and responsibility of the supply chain
management to coordinate with the operation management to gather vital and precious data that
can be useful for managing and controlling supplies. In order to enhance the performance of the
employees and reducing the errors in supplying process, both the management has the role and
responsibility to communicate and coordinate with each other. Operation management generally
monitors the internal operations of the organisation and supply chain management systems
generally focused externally of the organisation. Both the management have different directions
but have the same goal to achieve, which is to increase the productivity and profitability of the
organisation. They both play crucial role in the organisation. Operation management plays the
role of mediator and evaluator in the supply chain management process.
Operation manager monitor and evaluates the performance of supply chain manager and
prepare a report of the activities done in the supply chain management throughout the month.
This enables them to prepare and formulate precise strategies which can helps them to sustain in
the competitive environment (Ginter, Duncan and Swayne, 2018). Thus, from the above
evaluation, it can be understood that operation management plays significant role in both
strategic management and supply chain management process. Operation management is the
crucial part of the organisation which plays role of managing the day to day business operations
in order to attain the goals and objectives of the organisation.
CONCLUSION
From the present study, it can be concluded that operation management is an essential
part of organisation. It monitors, manages and controls the day to day business activities of
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company. In this context, this report covers the critical components of operation management
function by considering operation management of Apple. Clear explanation regarding
relationship between decision making and value chain has been provided. The operational plan
and process map regarding development of product and services has been provided in the report.
Operation managers plays significant role in formulating strategies and plans that helps the
organisation to sustain in the competitive environment. Operation management plays crucial role
in innovating and generating ideas that can enhance the productivity and profitability of the
company. Evaluation, application and articulation of principles and quantitative methodologies
to assist decision-making in operations process planning, scheduling and inventory management
has been discussed. Evaluation of the role of operation management in the strategic management
and supply chain has been assessed.
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REFERENCES
Books and Journals
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pp.80-85.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Galindo, G. and Batta, R., 2013. Review of recent developments in OR/MS research in disaster
operations management. European Journal of Operational Research. 230(2). pp.201-211.
Ginter, P.M., Duncan, J. and Swayne, L.E., 2018. The Strategic Management of Healthcare
Organizations. John Wiley & Sons.
Heizer, J., 2016. Operations Management, 11/e. Pearson Education India.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated
approach. Cengage Learning.
Jacobs, F.R., Chase, R.B. and Lummus, R.R., 2014. Operations and supply chain
management (pp. 533-535). New York, NY: McGraw-Hill/Irwin.
Kerzner, H. and Kerzner, H. R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Lasserre, P., 2017. Global strategic management. Palgrave.
Levy, M., Weitz, B. A. and Grewal, D., 2012. Retailing management (Vol. 6). New York:
McGraw-Hill/Irwin.
Lindell, M. K., 2013. Emergency management. In Encyclopedia of natural hazards (pp. 263-
271). Springer Netherlands.
Myerson, P., 2012. Lean supply chain and logistics management. New York: McGraw-Hill.
Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.
Subramanian, N. and Ramanathan, R., 2012. A review of applications of Analytic Hierarchy
Process in operations management. International Journal of Production
Economics. 138(2). pp.215-241.
Van Der Aalst, W. M., La Rosa, M. and Santoro, F. M., 2016. Business process management.
Online
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