Operations Management

Running head: OPERATIONS MANAGEMENT
Operations management
Name of the student
Name of the university
Author Note:

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OPERATIONS MANAGEMENT
Table of Contents
Overview of the Organization.........................................................................................................3
Discussion and Analysis of the functions of Inventory...................................................................3
Implications for Operations Management Strategy.........................................................................4
Theories and Concepts for assessing the efficiency of the inventory management........................5
Figure No 1: Streams in Inventory management.........................................................................6
Supply chain systems of the company.............................................................................................7
Stakeholders of the company and their influence............................................................................8
Recommendations for improvements for the organization.............................................................9
References......................................................................................................................................11

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OPERATIONS MANAGEMENT
Overview of the Organization
BHP which was formerly known as BHP Billiton is the trading entity of the larger, BHP
Group Limited and the BHP Group plc. The company is an Anglo Australian firm that deals in
multinational mining, metals and petroleum listed public company that is headquartered in
Melbourne, Victoria Australia (bhp.com, 2019). The main products of the company includes the
likes of Iron ore, coal, petroleum, natural gas, copper as well as Nickel and Uranium. The
company, BHP Billiton was formed in the year 2001 when the Australian Broken Hill
Proprietary Company limited and the Anglo Dutch Billiton formed a dual listed company. The
Australian registered limited has a primary listing on the Australian Securities Exchange and is
one of the largest companies in Australia in terms of the market capitalization. On the other
hand, the English registered arm has been another major area in the listing of the London Stock
Exchange along with being a constituent of the FTSE 100 index (bhp.com, 2019). Mining has
been one of the major strongholds of the company. Whooping revenue of around US$44Billion,
the company has been able to dominate the Australian as well as a considerable part of the global
market in a proper and effective manner. The company is also one of the largest employers of
Australia. The management of the company employs around 65000 employees around the globe
as well as in Australia which is a record for any Australian company (bhp.com, 2019).
Discussion and Analysis of the functions of Inventory
Inventory Management is the supervision of the non capitalized assets and the stocked
items. A component of supply chain management, inventory management supervises the flow of
goods from warehouses and from these facilities to the point of sale. The management of the
business organization has developed a particular application to tackle the inventory management.

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OPERATIONS MANAGEMENT
The software system developed by the IT team of the company tracks the quantity of the goods
in the storehouse and also tracks the inflow and outflow of the goods from the storehouses. The
system is developed in such a manner that the ERP system is linked with the flow of the goods
and thus each and every flow is tracked down by the centralized system of the ERP server of the
organization. The inventory management is one of the most important aspects of the modern day
business management. The software developed by the IT team of the company has helped BHP
Billiton to analyze the amount of goods stored and accordingly manage the system.
Implications for Operations Management Strategy
The management of BHP Billiton engages itself in using much simplified and easy
operating model to ensure the ease of carrying on the business operations. The new business
operating model has been implemented by the management of the business organization just a
few years back (bhp.com, 2019). According to, Barnett, Henriques & Husted (2018) the main
aim of the management of the company is to create a more agile company which is easily
available to respond to different kinds of business challenges and take over the presented
opportunities by a rapidly changing global marketplace. The change that has been implemented
in the business organization clearly focuses on the geographic operating regions of the company
and is well supported by the globalized functional services drawing upon world class expertise
and scale. The management of the company explains that the changes undertaken by the
company are nothing but the continuation of the process to simplify the operations of the
business organization. The more the simple is the operations system; the more will be the
chances of the productivity of the business organization (Barnett, Henriques & Husted, 2018).
The better control over the operations of the business management is highly essential for the
success of the business organization in an appropriate manner. The new changes in the system