Operations Management

Running head: OPERATIONS MANAGEMENT 1
Operations Management
Student’s Name
Institutional Affiliation

OPERATIONS MANAGEMENT 2
Operations Management
Operations management has been gaining increasing role primarily due to
globalization, change in market structures, strong competition, increased customer needs as
well as demands, and the shorter product life cycle. Operations management thus entails all
the products or services hence becoming increasingly significant for all companies offering
product and services (Hitt, Xu, & Carnes, 2016; Hitt, Carnes, & Xu, 2016). Generally,
operations management is based on all the processes which led to the production of goods
and services. It is imperative to note that all producing or services providing firms have to
deal with the management of operations to offer products, which fits as well as satisfy
customer needs along with demands in terms of the quality of product and services offered.
Operation management can be described as a transformation process through which all the
inputs are brought together by different processes in order to deliver outputs in particular
services or products of a given company (Akalin, Huang, & Willems, 2016). In the case
study, lean and six sigma theories are put into effect to determine the production efficiency in
the bakery industry and offer recommendations based on the strength and weaknesses found
in the operations process.
Background
Operations Management (OM) is one of the significant aspects of the business (Slack
et al., 2013). It has to be noted that OM aids in the success of the business (Greasley, 2013;
Patton et al., 2011). Both services, as well as manufacturing firms, put operations
management in use to ensure that they remain competitive as well as assist in providing along
with maintaining effective customer service (Johnson et al., 2012). Therefore, developing a
system of firms operations benefits the clients and the company as well (Bamford and
Forrester, 2010). It has to be noted that once a system has been developed as well as
understood it becomes easier to determine all the operations and effectively manage them.

OPERATIONS MANAGEMENT 3
Operations Management Theory
It is imperative to note that the theory of operations management focuses on four
theories and uses them collaboratively to analyze the operations process of a given industry
or organization (Slack, 2018). These theories include redesign of the business processes, six
sigma, determination of reconfigurable manufacturing systems as well as the lean
manufacturing (Kato, Nakajima, Saito, Okitsu, Shiga, & Miki, 2015; Kato, Nakajima, Saito,
Okitsu, Shiga, & Miki, 2016). The business process is redesigning focuses on the analysis of
the appropriate redesigning process to help a business spring back to efficient productions.
This can be done to reduce the cost of production or even improve the quality of services. On
the other hand, a business needs to focus on those systems that would help it to adjust quickly
to fit the production capacity as well as functionality in response to a sudden change in the
market system.
Six Sigma
Six Sigma is a strategy that is specifically designed to enhance the quality of process
output. In this case, the six-sigma program locates as well as removes the causes of the
defect along with errors through reducing variability. Six Sigma theory uses quality
management instruments like statistical analysis along with training employees to become
experts on using these particular tools (Marzagão & Carvalho, 2016; Cherrafi, Elfezazi,
Chiarini, Mokhlis, & Benhida, 2016). The process in six sigma follows the given sequence
of steps that leads to the accomplishment of the defined goals.
Lean Manufacturing
Lean is one of the production theories, which focuses on how resources are utilized to
fulfil a given objective that is not increasing value to the client. This objective is considered
wasteful and a target for elimination (Patel, 2017; Ruben, Vinodh, & Asokan, 2018). The
lean process evaluates for waste gaps in the operations process in order to increase the

OPERATIONS MANAGEMENT 4
efficiency of production. The lean process begins with the customer hence values all the
process for which the client will pay (Nicoletti, 2016; Castro & Posada, 2019). In addition, all
the aspects of production workflow are put into examination to single out the waste like
excess motion, overproduction as well as excess inventory.
Bäckerei X GmbH
Bäckerei X GmbH is a family enterprise that was founded in 2000. The business
operations of the bakery grew very fast, and it now employs 60 staffs. The company has an
ahead office with a location of production, three regional stores as well as five sales vehicles.
In addition, five franchise stores are managed by independent franchisees. It is the head
office that accommodates all the primary business departments inclusive of production,
purchasing, finance, personnel, marketing, and logistics, with some of these departments
subdivided.
Management of Asset and Inventories in the Production System
The product portfolio of the company includes different types of bread, cakes, rolls,
and pastries. The bakery uses modern production facilities to manufacture fresh bakery
products on each day of the week. It depends on the orders that have been made by the
franchise, the store staff, and the clients. Orders can be made via online-shop, mobile sales
personnel, and directly in the stores. It is after orders are made that the products are baked for
immediate delivery. In some other instances, the products can be produced and stored briefly
for supply or delivered deep-frozen. To enhance the freshness and quality of products those
frozen are stored for two days before being delivered to be baked and sold.
Freshly baked bread, cakes, rolls, and pastries are given to mobile vehicles every day.
However, purchasing managers of other franchise stores have a choice between frozen and
fresh bakery products. The orders must be placed through a special fax form, telephone calls,
or online. This has to be done two days before the delivery day. The management of the