Importance of Operation Management and Supply Chain

The provided report concludes that operation management, logistics, and supply chain management are crucial aspects to run a business activity more smoothly. Quality management is essential for improving the quality of goods and services, while employees are managed for better task performance and enhanced productivity. The flow of logistics and supply chain management should be clear between suppliers, firms, and customers to meet customer demands and satisfy their needs.

Understanding
Operations, Logistics and
Supply Chain
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
Operation Management, Logistics and Supply Chain Management...........................................1
Introduction to Organisation and Topics.....................................................................................1
Managing Quality........................................................................................................................2
Managing people in operations and supply chains.....................................................................4
Economic, Social and Environmental Approaches of an Organisation......................................6
Recommendations.......................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Operation Management, Logistics and Supply Chain Management
Operation management is a field of administration which concerned with controlling and
designing the process of redesigning and manufacturing of goods and services. It ensure an
organisation that there is only few resources needed to fulfil the customer's requirements. It is
concerned with planning, directing and controlling the manufacturing process in organisation. It
manage the whole process of production (Beske and Seuring, 2014). It is a process of converting
of raw material into finish goods. Operation refers to manufacturing of goods and management
refers to manage the quality of products and create services.
Logistics is a process of implementing of complex activities. It is a flow of things
between the point of origin and point of consumption for the purpose of satisfying the needs of
customers. It include include tangible as well as intangible items such as equipments, material,
food, liquid, information, time etc. It is a component of supply chain management which helps to
satisfy customers needs through planning and implementing of movements of goods and services
from one place to another.
Supply chain management is a management of flow of products and services including
transformation of input into output. It manage the process of supply of raw material from
supplier to producer and supply of finished goods from producer to customers. It focuses in value
of customers and helps an organisation to gain competitive advantage at marketplace.
Introduction to Organisation and Topics
In this report, organisation is selected from automotive sector which is Jaguar Land
Rover Automotive PLC which is a British multinational company. This company was introduced
in 18 January 2008. Its headquarter was located in Whitley, Coventry, UK. It is a type of
automotive industry. It produce luxury vehicles and off-road vehicles. This company is made
with the merger of Jaguar Cars Limited and Land Rover. These are the subsidiary of Tata
Motors. These are responsible for manufacturing, designing and marketing of products of Land
Rover and Jaguar in United Kingdom. They expand their business and introduce a Halewood
plant which thousands of new jobs.
In this assignment, selected topics are managing quality and managing people in
operation and supply chains (Brandenburg and et. al., 2014). Managing quality refers to the
management of quality of goods and services in organisation. It can be implemented through
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better planning and assurance of quality. Its main function is to focuses on quality of products
and services as well as meet the customers requirements. It is a formalised system which is
responsible for achieving quality objectives.
Managing people in operations and supply chains are essential feature of management of
an organisation. They manage employees in operation in which employees are perform their task
effectively and efficiently to achieve organisational objectives. In supply chains, employees are
manage to identify the need of customers and providing them products as per their demand.
Operations included all the activities of manufacturing process. Where employees are perform
their task effectively.
Managing Quality
It is a management of overall quality of organisation and maintain all the activities of
firm. It involves the determination of creating and implementing of planning and assuring of
improvement in quality (Ellram and Cooper, 2014). It generally focuses on long term objectives
by implementing short term initiatives. In quality management, company is produce high quality
goods by optimum utilisation of available resources. It helps to meet customer requirements and
satisfy their needs. This process will helps Jaguar Land Rover Automotive PLC to improve the
quality of team transportation. It also helps to implement a quality assurance procedure to
enhance confidence in the quality of output. It improve the quality of product by eliminating
errors in manufacturing process. Managing quality assure that organisation will provide superior
quality of goods and services to their customers. It is essential for satisfy the needs of customers
in order to get customers loyalty which increase productivity and revenue of an organisation.
Theory of Managing Quality
Total Quality Management (TQM):- It is a management approach which is apply in
organisation to achieve long term success by satisfy the need of customers. All the top managers
of a company are make strategy to improve the quality of products, processes, services, culture
and overall organisation. It involve employees in decision making process because employees
have different set of skills and they generate ideas and opinions for success of a firm (Hofmann
and et. al., 2014). Managers of Jaguar Land Rover Automotive PLC are focus on their customers
and their demands and for better improvement in quality they provide training to their
employees, upgrading software and purchasing tool and techniques which helps to improve
productivity of a firm. It is a continuous approach which is used to get long term success. It is an
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extensive structure of an organisation which improve quality of a product by detecting errors and
obstacles.
Total Quality Management in Automotive Industry
Total quality management is a systematic approach to improve the efficiency of Jaguar
Land Rover Automotive PLC which helps to increase profitability and sustainability of an
organisation. Jaguar Land Rover is an automotive industry which produce luxury cars. So, it is
important for company to maintain their quality or upgrade their technology as per customer
needs. There are different principles of total quality management, which are as follows:-
Continuous Improvement- companies apply total quality management approach for
continuous improvement in quality of product and services. When companies are continuously
manage their quality and productivity and improve their quality process and products (Khajavi,
Partanen and Holmström, 2014). It needed the elimination of defects and enhance efficiency in
each process. Jaguar Land Rover focuses on improvement in quality of their vehicles in a
proactive manner.
Customer Focus- There are mainly two types of customers for an organisation. One is
external customers who exist outside the organisation and place order for buy any goods and
services. Internal customers are those who lives inside the company like employees,
departments, co-workers etc. It is a responsibility of manager of Jaguar Land Rover to focus on
both type of customers to retain long term in future. It is necessary for employees to get better
training by which they can produce quality product and enhance brand image of a company and
improve their productivity. Every employee should determine customers needs and identify the
best way to satisfy their needs by providing them quality goods. Workers also need to
communicate with supplier and quality of material provided by them.
Team Involvement- Total quality management approach believes that when employees
are working together in a team without any conflicts and with coordination then it helps to
improve overall quality of goods and services of an organisation. In Jaguar Land Rover from top
level manager to lower level employees, every person contribute their efficiency in continuous
improvement in quality of goods and services of vehicles (Kozlenkova and et. al., 2015).
Companies conduct training and development program for their employees by which they learn
about new and innovative technology and learn about how to work in a team. Managers also
encourage their employees for better performance and involve them in decision making process.
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Use of Quality Tools- There are different types of tools and equipments used in
manufacturing of vehicles. It is important for Jaguar Land Rover to use best quality equipments
and tools at the time of making cars. It is important for a company to use superior quality
instruments for ensuring that worker are capable to make valuable products and contribute in
success of an organisation(Monczka and et. al., 2015). Ability of employees also helps to finds
out the causes of problems arises in firm and efficiency to solve that problem by knowledge and
skills.
Product Design- It is essential for Jaguar Land Rover to provide a design that meets
expectations of consumer. A quality product with unique design is very important to satisfy the
need of customers and improve the overall quality automotive company. A general description is
provide to customer i.e. tough, sleek and safe. It provide an assurance regarding quality of
product.
Manage Supplier Quality- It is important for an organisation to manage the quality of
supplier. Quality of products is depends on quality of raw material get by supplier. Jaguar Land
Rover have to buy raw material from that supplier who provide better quality which ultimately
helps in improving quality of goods with more productivity.
Managing people in operations and supply chains
This concept deals with management of people in operation and supply chain
management. Operations is an activity in which employees are perform task to convert the raw
material into finished goods. Supply chain management is a concept of transferring of goods and
services from one place to another for satisfy the needs of customers. It is an important concept
for organisation for better development of employees and use their knowledge and skills in
growth of an organisation. It is a responsibility of manager of Jaguar Land Rover to manage their
employees in operating activities by providing them proper training by which they will
understand about the complete process of manufacturing of goods and services (Prajogo, Oke
and Olhager, 2016). Managing of supply chains is also essential to meet the requirements of
customers by providing them goods timely. In supply chain management, managers have to take
decision about forecasting demand, decision on supplier, purchasing stock and arrangement of
warehousing. Managers should manager the staff of supply chain.
Theory of Managing People in Operations and Supply Chains
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Business Process Management:- Business process management is a method of
analysing, automating and improving the process of operations and supply chain management.
Operation manager of Jaguar Land Rover have to analyse the process of manufacturing of goods
and services (Operation Management Theory, 2018). It is a responsibility of manager of a firm to
systematically manage their employees in performing task from manufacturing of good and
services to reach it to their potential customers. There are following steps includes in business
process management which are as follows:-
Design- This is the first step of business process management. In this step, Jaguar Land
Rover focuses on design of their vehicles which is demanded by customers or which is unique
from their competitors. When employees are properly trained and managed in an organisation
then they contribute in developing best design of goods and services. Other than this, when
employees are manage in logistics and supply chain then they supply their products in different
countries with better quality.
Modelling- In this step, a sample diagram is prepared on paper to analyse the process of
manufacturing and managing of people in operation and supply chains. Managers of Jaguar Land
Rover are follow this technique to aware every employees about their process of managing and
manufacturing which helps to enhance customer attraction towards company.
Analysis- When workflow diagram is prepared by managers of Jaguar Land Rover then
they have to analyse it (Touboulic and Walker, 2015). If they find out any obstacles or errors
then they improve that. They also analyse the competitors strategy and past experience to
implement new strategy.
Monitoring- After analysing the process of business management it is required to
monitor or check the strategy and manage the people on their task and also manage supply chains
by the helps to supply chain staff. In this step, manager of Jaguar Land Rover monitor that this
process make positive or negative impact on their business activity.
Improving or Automating- This is the last step of business process management. In this
step, there is an improvement of both environment and employees to better output. Supply
services and working environment are properly improved then it indicates successful
management of people in operations and supply chains.
Supply Chain Management
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It is important for an organisation to manage staff in supply chain for proper arrangement
of raw material with high quality which make quality goods and satisfy the need of customers.
There are so many competitors in automotive industry. So, it is important for Jaguar Land Rover
to improve their supply chain management for better growth and success by getting competitive
advantage. The flow of material, products and information should be better and without any
obstacles between suppliers, organisation and customers (Wang and et. al., 2016). Jaguar Land
Rover have to focus on better flow of transfer of goods and services from one place to another. It
there is any obstacles arises in supply of goods and services then it make effect on cost and profit
of an organisation. So, it is necessary to manage skilful employees in supply chains to enhance
the brand image of an organisation.
Economic, Social and Environmental Approaches of an Organisation
Approaches of economical, social and environmental regarding Jaguar Land Rover are
discuss as below:-
Economical Approach- This approach helps an organisation to maintain investment and
provide the beneficial sources which helps in giving the maximum benefit from investment.
Jaguar Land Rover work with regional, local and national stakeholders to influence the
government for liberal their policies and share best practices for current and future activities
which affect the business activities of company. This approach is deals with exchange rate, trade
policy, inflation and deflation rate of a country which make impact on business activity of
Jaguar Land Rover.
Environmental Approach- This approach of an organisation states that company is
focusing on minimum wastage of material with concerning of suppliers and employees.
Environmental consideration make impact on business activity of Jaguar Land Rover and
specially on supply chain management. They have to encourage their suppliers to supply the high
quality material as per decided by them because it helps in their sustainability and profitability.
Company buy those material with their suppliers which does not make any adverse impact on
environment (Yu and et. al., 2014). Jaguar Land Rover use renewable energy or low-carbon to
reduces fossil fuels and improve energy security to cut CO2 emissions. This helps to reduce CO2
emissions and increase production volumes.
Social Approach- Jaguar Land Rover give huge value to communities. They support to
local people and inspire to young people to take initiative and work with them. Social approach
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deals with social culture and living standard of society which influence the buying behaviour of
consumers.
Recommendations
There are recommendations for Jaguar Land Rover for future improvement and sustain
long term in market and capture largest area at market place.
 Company have to use advance technology and design their vehicles with unique features
which make attractive from other luxury cars.
 Jaguar Land Rover vehicles are more expensive. For future improvement they have to
focus on medium income level group by which they can afford the cars. It increase sales
as well as profit of an organisation (Rushton, Croucher and Baker, 2014).
 Jaguar Land Rover should also identify competitors strategy and make strategy to beat
competition and attract more and more customers.
CONCLUSION
From the above mentioned report it can be concluded that operation management,
logistics and supply chain management are the important aspects to run a business activity more
smoothly. Quality management is an important approach to improving the quality of goods and
services of an organisation. Employees are managed in organisation for better task performance
and enhancing productivity. The flow of logistics and supply chain management should be clear
between supplier, firm and customers by which organisation have to meet the demand of
customers and satisfy their needs.
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REFERENCES
Books and Journals:
Beske, P. and Seuring, S., 2014. Putting sustainability into supply chain management. Supply
Chain Management: an international journal. 19(3). pp.322-331.
Brandenburg, M. and et. al., 2014. Quantitative models for sustainable supply chain
management: Developments and directions. European journal of operational research.
233(2). pp.299-312.
Ellram, L. M. and Cooper, M. C., 2014. Supply chain management: It's all about the journey, not
the destination. Journal of Supply Chain Management. 50(1). pp.8-20.
Hofmann, H. and et. al., 2014. Sustainability‐related supply chain risks: conceptualization and
management. Business Strategy and the Environment. 23(3). pp.160-172.
Khajavi, S. H., Partanen, J. and Holmström, J., 2014. Additive manufacturing in the spare parts
supply chain. Computers in industry. 65(1). pp.50-63.
Kozlenkova, I. V. and et. al., 2015. The role of marketing channels in supply chain management.
Journal of Retailing. 91(4). pp.586-609.
Monczka, R. M. and et. al., 2015. Purchasing and supply chain management. Cengage Learning.
Prajogo, D., Oke, A. and Olhager, J., 2016. Supply chain processes: Linking supply logistics
integration, supply performance, lean processes and competitive performance.
International Journal of Operations & Production Management. 36(2). pp.220-238.
Rushton, A., Croucher, P. and Baker, P., 2014. The handbook of logistics and distribution
management: Understanding the supply chain. Kogan Page Publishers.
Touboulic, A. and Walker, H., 2015. Theories in sustainable supply chain management: a
structured literature review. International Journal of Physical Distribution & Logistics
Management. 45(1/2). pp.16-42.
Wang, G. and et. al., 2016. Big data analytics in logistics and supply chain management: Certain
investigations for research and applications. International Journal of Production
Economics. 176. pp.98-110.
Yu, W. and et. al., 2014. Integrated green supply chain management and operational
performance. Supply Chain Management: An International Journal. 19(5/6). pp.683-
696.
Online
Operation Management Theory. 2018. [Online]. Available
through:<https://tallyfy.com/guides/operations-management/>
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