Operational Operations Management 3 TASK 13

Operations
Management
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Table of Contents
Table of Contents.......................................................................................................................................2
INTRODUCTION.....................................................................................................................................3
TASK 1......................................................................................................................................................3
1.1) Importance of operations management......................................................................................3
1.2) Analyzing operation function.....................................................................................................4
1.3) Process model............................................................................................................................4
2.1 Importance of 3 E's......................................................................................................................5
2.2) Impact of Cost minimization and quality maximization............................................................6
2.3) Significance of Performance objectives.....................................................................................7
TASK 2......................................................................................................................................................8
3.1) Linear Programming..................................................................................................................8
3.2) Evaluating critical path analysis and network planning.............................................................8
3.3) Need for operational planning and control................................................................................9
4.1) Designing of possible layout for producing furniture..............................................................10
4.2) Network plan and critical path.................................................................................................10
4.3) Approaches can be used for project management and quality control....................................12
CONCLUSION........................................................................................................................................12
REFERENCES.........................................................................................................................................15
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INTRODUCTION
Operation management can be defined as an area of management which is usually
concerned with designing and controlling process of production and also in redesigning business
operations in production of goods and services. This process is concerned with planning,
organizing and supervising in context of production and manufacturing or provision of services
(Griffin, 2013). The organization undertaken for this report is Global Leisure Furniture Company
which is a leading and established supplier of chair components and leisure furniture to office
and contract market. This present report is based on understanding the nature and importance of
operational management and also the link between operations management and strategic
planning. This report also focuses on relevant technique to production of operational plan for
organization.
TASK 1
1.1) Importance of operations management
An effective operation can give various types of advantages to Global leisure company.
By being efficient and effective operation management can reduce the cost of products and
service. This operation management further leads in increase in revenue through increase in
customer satisfaction for providing quality of goods and services. It also provides basis for
innovation by building a solid base for operation and knowledge (Benjaafar, Li and Daskin,
2013). Operation management can reduce amount of capital employed by being effective and
innovative in use of resources which is necessary in producing goods and services. There are
several reasons which makes operation management important. Encompasses. Global leisure
company can lead to economic growth and development and also help employees to receive high
wages in order to increase organization profit without causing inflation.
Furthermore, operational management is responsible for final product and service
produced by the input. The final product which will be created will attract consumers and
ensures that organization make profit. If customers demands are fulfilled than business will be
able to began and increase its sales and also will be able to maximize their profits. Decision
having major impact on both cost of producing products and also how well the product are
produced and delivered which have a major impact on revenue (Brown, Bessant and Lamming,
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2013). Global leisure company uses operation management to ensure efficiency and
effectiveness in the organization. Organization must also ensure that they are working well
within the time and able to produce best quality of goods. Producing on time gives Global leisure
company several advantages. This will give them more opportunity to attract their target market
and also will be able to identify their strength and weakness, they can further go ahead of
competitors by making improvements where needed (Becker, Kugeler and Rosemann, 2013).
1.2) Analyzing operation function
Operational function will bring together the raw material with production to make a
perfect product which customer requires. This function helps Global leisure company to improve
its processes and achieve cost savings. It is essential for Global leisure to have right people in
place in order to achieve competent advantage over other rival firms. Organization aim is to
develop high performance team who will work within a culture of continuous improvement.
Employees in Global leisure have opportunity to contribute their ideas in order to achieve results.
Operational manager have to understand that what the overall objectives of the operations
are. These objectives focus on major areas and are listed as quality, speed, dependability,
flexibility and cost. Global leisure company have to purchase woods and fabrics of high quality
for making attractive and delightful furniture (La Rosa and et.al., 2011). Hiring employees and
train them to prepare attractive designs, shades, structure which attracts consumers to buy them.
Location and layout of furniture factory plays a crucial role as global leisure company need to
satisfy their employees demands too. Organization must be easy to reach with low convenience
fare. Operational function is also vital as business are able to produce safely; to cost; to quality;
on time within the law framed by government. Producing things on time give Global leisure
company several advantage as this will give opportunity to organization to attract their target
market and also they can easily identify their strength and weakness in order to gain competitive
advantage (Ramezani, Bashiri and Tavakkoli-Moghaddam, 2013). Organization need to also
ensure that they are able to save unnecessary and unexpected cost and also making use of their
resources in production of final goods and services. This might further help organization to save
their money and control their expenditure and make efficient and effective use of it.
1.3) Process model
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