Importance and Value of Operational Management

The assignment discusses the importance and value of operational management in businesses, particularly in supermarkets like ALDI. It explores various approaches to operational management, including total quality management, just-in-time production, lean production, Six Sigma, queuing theory, and continuous improvement. The document also emphasizes the role of leaders and managers in implementing these approaches to achieve business objectives.

OPERATIONS
MANAGEMENT

Table of Content
 Introduction
 Approaches to operational management.
 Importance and value of Operational management.
 Conclusion
 References

INTRODUCTION
In the competitive business environment it has become
crucial for super market chains such as ALDI to apply
operational management theories and approaches. It is the
role of the leader and management to make sure that they
apply all these approaches in a better way (Walker, et al.,
2014). Operational management is highly important for the
companies like ALDI and adds value to the products and
services that company delivers to its clients.

Approaches to operational
management
There are many approaches that are used by
the managers in order to make operational
management in a way that helps them in
achieving their goals and objectives on time.

CONTINUE….
Total quality management
It is one of the most utilized approaches in an
operational management of the firm. It has become
essential for the organization that they look at the
quality of the process as well as the products and
services they are delivering to their clients.

Continue….
Just in Time
It is an approach that is utilized by the
managers of ALDI for increasing the efficiency
of the firm. This approach aims to enhance the
productivity of the organization while reducing
the amount of waste that gets generated.

Continue…..
Lean production
This is another operational management theory
that aims to adopt methods that are systematic in
nature. It reduces the production of waste in the
manufacturing system without having significant
decrease in the production capability of the
company.

Continue…
Six Sigma
It is an approach that consists of the tools and techniques
for improving the processes of the company. It is another
most widely used technique along with TQM that seeks to
improve the quality of results of the process by finding and
removing the causes of defects and reducing variations in
the manufacturing and other business processes.

Continue…
Queuing Theory
In the operational management of retail, queuing theory
is very important. It is a mathematical approach that is
used in the ALDI to predict the number of consumers that
will be coming to the super market at any particular time.
It helps ALDI in making sure that they have arranged all
the resources so that customers do not have to wait.

Continue….
Continuous improvement
It is essential for ALDI to make sure that they
have made continuous improvement in the
processes of the firm. It helps in making edge
in the market. Company always needs to
make sure that they have adopted a system
that accounts for continuous improvement.
This theory is also known as the Kaizan theory.

Importance and value of Operational
management
Operational management is very essential in an
organization and plays a very essential role in
achieving business objectives. Operational
management includes overseeing, designing,
controlling the process of production and
redesigning the operations related to the business in
the production of goods and services.

Continue…
Some of the ways in which operational
management adds value to the firm are:
Control and distribution system.
Adding value to the products.
Process design.
Capacity.
Logistics and inventory management.

CONCLUSION
Operational management is highly important
within an organization. It helps them in adding
value to the products and services they are
producing inside their firm. There are several kinds
of approaches that are utilized in operational
management and the role of leaders and managers
becomes very crucial in this regards.

REFERENCES
Walker, P.H., Seuring, P.S., Sarkis, P.J. and Klassen, P.R.,
(2014) Sustainable operations management: recent
trends and future directions. International Journal of
Operations & Production Management, 34(5).
Heizer, J., (2016) Operations Management, 11/e.
Pearson Education India.
TechTarget. (2018) Kaizan (or continuous
improvement). [Online]. Available at:
http://searcherp.techtarget.com/definition/kaizen-or-
continuous-improvement. [Accessed on: 12th March
2018].