Operation Management Report

This report provides insights into operation management, including the 4 V's, KPI's, benchmarking, balanced score card, 9 point performance scale, and Six Sigma approach. It focuses on Jaguar Land Rover Limited.

Operation Management-
Report

Table of Contents
INTRODUCTION...........................................................................................................................1
Operation Management....................................................................................................................1
Stage 1..............................................................................................................................................1
4 V's........................................................................................................................................1
Stage 2..............................................................................................................................................3
KPI’s, benchmarking, balanced score card............................................................................3
Stage 3..............................................................................................................................................4
9 point performance scale.......................................................................................................4
Stage 4..............................................................................................................................................6
Six Sigma approach, Lean production....................................................................................6
CONCLUSION ...............................................................................................................................7
RECOMMENDATIONS ................................................................................................................7
REFERENCES................................................................................................................................9
Books & Journals...................................................................................................................9

INTRODUCTION
Operation management consist of different activities which are generally associated with
the functions relation to production of goods and services. Along with this, it mainly concerned
with designing, controlling and performing business operations. This procedure is concerned
with maintaining the quality of services and products offered by company with the help of
maintaining balance among overall cost and revenue (Deihimi, Zahed and Iravani, 2016). This
report is based on Jaguar Land Rover Limited, which is a British multinational automotive
company and its headquarters are located in Whitley, UK. It has been identified that it is a
subsidiary of Tata Motors. The major activity of this company is development, designing,
manufacturing and selling of vehicles being manufactured by them. This report consists of
potential problems and key concepts, tool, techniques of productions and operation management,
comparison of various system technologies, network, various means through which quality can
be improved.
Operation Management
Operation management is considered as one of the important factor for each and every
organisation who perform their business operations in an effective manner within corporate
world. It is the process which help in monitoring, controlling as well as administrating various
functions in order to increase the quality as well as performance of the product. It has been said
that with the help of operation management, managers will be able to provide high quality goods
and services to their customers in order to retain them for a long period of time. Furthermore, it
will assist in increasing their customer base by satisfying their needs and wants. One of the most
essential requirement is to ensure that there must be enough stock available at the workplace so
that needs and wants of customers will be fulfilled in an effective manner and within given time
frame (Joo, Jung and Kim, 2015).
Stage 1
4 V's
The main characteristics of the procedure is that it transforms each and every resources
into effective outputs which is mainly categorised into four different dimensions. It has been
analysed that all operation process have some common things that they all need some inputs in
the form of raw material, capital, knowledge, time, equipments and many more and in return

transform all these into outputs. These dimensions includes volume, variation, variety and
visibility. It has been said that the process of developing and creating goods and services which
are based fundamentally which helps them in order to create values in an effective manner.
These are the dimensions in the context of Jaguar Land Rover Limited are going to be discussed
as follows: The Volume Dimension: It is the first element where main principle is to keep the
volume high and cost low of overall production process. It has been said that if goods and
services of an organisation is produced in high volume or in bulk then it will reduce the
overall cost of the production process (Kavousi‐Fard, Niknam and Baziar, 2015). Along
with this, it has also been analysed that with the help of continuous repetition of task,
efficiency of employees will be increased, this reduced the wastage or scrap and leads to
increase the overall profitability. Therefore, in respect of Jaguar Land Rover Limited, it
has been concluded that managers need to focus on the volume rather than other things as
it provides them opportunities to enhance their overall profitability. The Variety Dimensions: On the other hand, if we talked about variety dimension, it has
been said that management team of the company increase their dimension area to beat the
competitive marketplace. In context of Jaguar Land Rover Limited, it has been said that
company provide similar products and services to their customers but it includes variety
as well as flexibility which attracts large number of customers towards them. Therefore,
in order to increase profitability and to garb attention of consumers towards the
organisation so that they can enhance their market share and will be capable enough to
beat the competition. The Variation Dimensions: According to this element, it is said that management team
of a company decides to add some variations in their available products and services.
This is the method through which large number of customers which be able to attract
towards the organisations as they provide unique features. In references to Jaguar Land
Rover Limited, production department develop new and unique features in their existing
products and services so that they can beat the competition and gain various opportunities
at the marketplace (Moazeni, Defourny and Hajimiragha, 2015). This is the element
which requires innovation and creativity within their current products and services.

 The Visibility Dimensions: According to this element, an individual or a customer will
be able to track their order in an effective manner. For instance, while placing any order
through online sources, customers get to know about the current position of their product
on a regular basis till they get their product. This is the method through which large
number of customer's will be able to attract towards the organisation. In references to
Jaguar Land Rover Limited, it has been said that managers need to provide a tracking
system to their customers through will they will be able to know about their product in an
effective manner (Parisio, Rikos and Glielmo, 2016).
Stage 2
KPI’s, benchmarking, balanced score card
There are ample number of methods used by management team of a company examine or
evaluate the overall performance of business organisation. In general manner, performance of the
company can be analysed by managers by using different methods. Some of the most commonly
used methods are going to be discussed as follows in the context of Jaguar Land Rover Limited.
Key Performance Indicator: It is said that key performance indicator is considered as a
measurable value which mainly demonstrates that how effectively and efficiently a company is
achieving their business objectives at the competitive marketplace. In an organisation, managers
use KPIs at different levels so that they can examine their success rate at every level. It has been
said that there are two main types of KPI's used by managers of an organisation. In case of high
level of key performance level, managers mainly emphasis on the overall performance of the
organisation. But on the other hand, low level KPI focuses upon the business process of each and
every department which includes marketing, sales, HR and so on. In the present context of
Jaguar Land Rover Limited, managers of the company use both level of KPI within there
organisation in order to examine the overall performance (Shabanpour-Haghighi and Seifi,
2015). Along with this, using this method can help them in order to examine their current
performance and match it with their expected performance. Therefore, if there is any kind of gap
arise within their current and actual execution of services, they can develop strategies to reduce
that difference.
Benchmarking: It is define as the procedure where management team of the company
examine their performance against any other products or services offered by the best

organisation within the same industry. In simple words, managers set specific standards for the
business entity and develop strategies to attain them within given time period and beat the
competition available at the marketplace. The main objective of setting benchmarking is to
examine the internal opportunities for further improvements after analysing the market
conditions. In the present context of Jaguar Land Rover Limited, manager set specific some
standards against the products and services offered by competitor organisations (Suarez-Barraza,
Miguel-Davila and Vasquez-García, 2016).
Balance Score Card: It has been analysed that balance score card is considered as a
strategic management tool used by the management team of company in order to examine their
performance. With the help of this tool, managers will be able to identify their actual as well as
standard performance with the help of this tool. If there is any kind of gap arise within this, it is
required by the managers to develop strategies and policies so that they can beat the competition
arise at the marketplace. In the context of Jaguar Land Rover Limited, managers use this method
in order to examine and score their current performance and evaluate it with the set standards.
Stage 3
9 point performance scale
It refers to the model which is commonly used by the management team of an
organisation for succession planning. This is the method where managers evaluating
organisation's current talent as well as examining their potential leaders. It is the model which
includes horizontal as well as vertical columns, where vertical column indicates about the growth
rate of staff members and on the other hand horizontal column indicates the performance of
employees within the organisation. Nine Box matrix is used to analyse the past performance
ODF an individual as well as to know the future potential of an individual. Sometimes it is used
by the organization to review the talent of its team members. No cost can occur if organisations
apply nine point performance scale (Viveros Gunckel and et. al., 2016). In addition to this, it also
helps in identifying the needs of a person and developing them. Management team use this grid
to find the right people in order to do promotion. Sometimes managers are unaware about the
perception of its employees, these helps them to understand the point of view of employees
which help to make better relationships with the employees. Nine box grid focuses and review
the weaknesses and strength of employees as well as organisation. With this, it is an effective

tool to determine the potential and performance of employees and the teams. The main reason of
using this grid by the companies is to do succession and effective planning so that its
performance can be improved. At last, nine box performance scale motivate the employees and
aid organisation to retain their employees for a longer period of time.
With the help of this model, managers will be able to know the potential and capabilities
of their staff members so that they will develop effective strategies and policies according to the
requirements. Along with this, it will assist in examining the growth rate of individual working
within the organisation. Therefore, management team of Jaguar Land Rover Limited need to
adopt such model in order to identify the current development rate of their workers (Wang,
Huang and Ji, 2017).

Stage 4
Six Sigma approach, Lean production
It has been analysed that operation management refers to the study of business activity so
that they can increase their information about the pattern or behaviour of working. The main aim
is to attain raise the efficiency as well as effectiveness of employees and will be able to complete
their task within stipulated time frame. Its primary function is to enhance the performance as
well as productivity of the company with the help of available resources. In this context both
leaders and managers adopt various approaches within Jaguar Land Rover Limited so that they
can perform their functions in an effective manner (Webb, 2017). Some of the most essential
approaches are as follows which is adopted by the management team of Jaguar Land Rover
Limited: Six Sigma approach: It is one of the most effective approach used by management team
of a company in order to remove or reduce defects or wastage from business functions.
Six sigma refers to a set of management techniques and tools which is designed to
improve business functions by reducing the wastage and scrap. This will assist in
enhancing the overall quality of the products and services offered by company. In the
present context of Jaguar Land Rover Limited, it has been analysed that if managers
adopt this approach in their organisation then they will be able to satisfy the requirements
of customers and gain various competitive advantages at the marketplace. Along with
this, managers will be able to retain their staff members as well as customers for a long
period of time (White, 2016). By executing such approaches within the organisation, user
will be able to gain high quality products and services which help them in order to
maintain their sustainability at the marketplace. This as a result, company will improve

their ROI, helps in preventing defects and will be able to attain their goals and objectives
in an effective manner.
 Lean production: Lean manufacturing refers to a methodology which commonly focuses
on reducing and minimising waste products within the system of manufacturing and helps
in maximizing productivity along with profitability (Zare and et. al., 2016). Therefore, it
is considered as one of the most systematic approach which helps in improving the
overall quality of products and services offered by them to their customers. It is also
known as lean production which provide various benefits to the customers as well as to
the staff members in a positive manner. With the help of appropriate use of lean
production approach managers will be able to reduce excessive use of manpower,
increase quality of work and many more. In the present context of Jaguar Land Rover
Limited, this is the method used by management team of company in order to deal with
various types of issues and problems, provide them better working conditions. In addition
to this, it will help in enhancing the performance as well as productivity of staff members
in an appropriate manner (Zhang and et. al., 2016).
CONCLUSION
With the assistance of above mentioned report, it has been clearly identified that
operation management plays very essential role within the company as it assist in performing and
controlling each and every activity conducted by the staff members in an effective way. Along
with this it has been identified that there are 4 V's included in operation management, where
volume, variety, variation and visibility helps in performing business functions in an effective
manner. Along with this, there are some approaches used by management team of the company
in order to increase their performance and reduce their defects and wastage while manufacturing
goods and services. These approaches includes six sigma and lean production which assist in
reducing their wastage and enhancing the quality of products and services. This as a result
contributes in raising the overall profitability and sustainability of the company at the
competitive marketplace.
RECOMMENDATIONS
After conducting the whole analysis, there are some recommendations given to the
management team of Jaguar Land Rover Limited. With the help of these suggestions managers

will be able to increase their overall performance and productivity at the competitive
marketplace. Some of these recommendations are as follows:
 It has been recommended to the managers that they must use six sigma as well as lean
production approaches effectively so that they can minimise wastage, defects and scraps.
This will leads to increase the overall profitability of the company and raise customer
base as they get high quality products and services.
Along with this, it is also recommended to the higher authority that they must innovate new and
unique products and services according to the requirements of customers. For this, managers
must conduct market research on a regular basis so that they can identify the current needs and
demands of customer's.

REFERENCES
Books & Journals
Deihimi, A., Zahed, B. K. and Iravani, R., 2016. An interactive operation management of a
micro-grid with multiple distributed generations using multi-objective uniform water
cycle algorithm. Energy, 106, pp.482-509.
Joo, J., Jung, D. and Kim, Y., 2015. Development of Operation· Management System of
Comprehensive Plan for Storm and Flood Damage Reduction. Journal of Korean
Society of Hazard Mitigation, 15(3), pp.131-139.
Kavousi‐Fard, A., Niknam, T. and Baziar, A., 2015. A novel multi‐objective self‐adaptive
modified θ‐firefly algorithm for optimal operation management of stochastic DFR
strategy. International Transactions on Electrical Energy Systems, 25(6), pp.976-993.
Moazeni, S., Defourny, B. and Hajimiragha, A.H., 2015, August. Risk-sensitive stochastic
optimization for storage operation management. In 2015 IEEE International Conference
on Smart Energy Grid Engineering (SEGE) (pp. 1-6). IEEE.
Parisio, A., Rikos, E. and Glielmo, L., 2016. Stochastic model predictive control for
economic/environmental operation management of microgrids: An experimental case
study. Journal of Process Control, 43, pp.24-37.
Shabanpour-Haghighi, A. and Seifi, A.R., 2015. Multi-objective operation management of a
multi-carrier energy system. Energy, 88, pp.430-442.
Suarez-Barraza, M. F., Miguel-Davila, J. Á. and Vasquez-García, C. F., 2016. Supply chain
value stream mapping: a new tool of operation management. International Journal of
Quality & Reliability Management, 33(4), pp.518-534.
Viveros Gunckel, P., and et. al., 2016. Graphical analysis for operation management: a graphical
method to support operation decision making. Quality and Reliability Engineering
International, 32(7), pp.2299-2311.
Wang, Y., Huang, S. and Ji, Z., 2017. Operation management of daily economic dispatch using
novel hybrid particle swarm optimization and gravitational search algorithm with hybrid
mutation strategy. Modern Physics Letters B, 31(19-21), p.1740099.
Webb, S.P., 2017. Knowledge management: Linchpin of change. Routledge.
White, P.R., 2016. Public transport: its planning, management and operation. Routledge.
Zare, M., and et. al., 2016. New stochastic bi-objective optimal cost and chance of operation
management approach for smart microgrid. IEEE Transactions on Industrial
Informatics, 12(6), pp.2031-2040.
Zhang, Y., and et. al., 2016. Model predictive control-based operation management for a
residential microgrid with considering forecast uncertainties and demand response
strategies. IET Generation, Transmission & Distribution, 10(10), pp.2367-2378.