Operations Management and Decision Making

Management and operation

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 3.................................................................................................................................................1
P 4 Explaining the key approaches to operations management and the role that leaders and
managers play.........................................................................................................................1
P 5 Importance and value of operation management in achieving business objective..........2
L O 4................................................................................................................................................4
P6) Factors that may impact operational management...........................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Operational management is the administration of business pattern to create the broad level of
skilfulness possible within a structure. As it is basically obsessed with converting the raw
materials and labour into goods and services as it helps to gain the efficiency and affectivity of
the business. Southern business technologies limited is leading company of small and medium
enterprise in United Kingdom. This assignment will include the key approaches that are lean
management , total quality management and Kaizen to operation management and also the role
of leader a manager play. Further it will identify the importance and value of operation
management in achieving business objectives. Apart from this it will assess all the various
factors within the business environment that will impact upon operational management and
decision-making by the leader and manager as all the factors are political, economic, social
technological, ethical and corporate social responsibilities which affect the decision-making
process.
LO 3
P 4 Explaining the key approaches to operations management and the role that leaders and
managers play.
Lean Management : Lean management reduces or eliminate the waste of time, effort or money
by identifying each step in a business process. In other words, lean management is the way to
develop or make the aim of maximizing the value of the product or services to gain business
growth or opportunity (Formentini and Taticchi, 2016). Lean process can be managed their
process through redesigning workplace, productive maintenance and ensure the effective
implementation process throughout. Southern business technologies limited has to adopt the
following principles of lean management :
 Identifying the value : It defines that company has to maintained value to sustained the
ultimate customer by product family.
 Create the flow : This principle suggests that work must be go on according to
systematic manner so as per that product reaches the customer smoothly.
 Seek perfection : Manager should eliminate the waste process that operates the batch
sized and production with working on one product at a time.
Total Quality management : Total quality management is the continual process of
detecting and reducing or eliminating errors in manufacturing, streaming and supplying the
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management tasks. This approach of operation management is very fruitful and effective in terms
of maintaining the proper approach or working criteria. TQM is already developed aim to hold
parties involved within the workplace environment. The core principles of TQM is focusing on
customer, Employee involvement, Process centred, Integrated system, Strategic and systematic
approach. All such principles are very helpful to evaluate the proper working system and ensure
the best results and outcomes for achieving aims and objectives. In which the role of manager is
to review the process or function throughout the business.
Six sigma Approach : This Operational approach focused on Quality control that helps
to driven the data and limit the mistakes from the process. It helps to improves the defects in and
process (Reid and Sanders, 2015). However, Southern business technologies should involve this
approach into the business functions to make the process more productive and productive.
Along with that, it helps to define the effective working opportunity and goals to get the highest
working performance within the organisation. This approach consists some of the process such
as Define, measure, analyse, design and verify the whole process of working and goals. Overall,
this approach can very helpful to reduce the process cycle time, reduce of scrap generated by a
process or increasing the buyers satisfaction towards the company aims and objectives. Manager
can helps to define problem and identify the project plan into more effective manner.
Concept of continuous improvement (Kaizen) : Continuous improvement is the
essential process that Southern business technologies limited has to adopt to maintained the
qualitative work and goals (Sekaran and Bougie, 2016). In order to that Southern business
technologies limited can also train senior management team in order to manage the effective
working out goals and effective management task.
P 5 Importance and value of operation management in achieving business objective.
Importance of operational management
As it is the process that involve planning , organization , managing , controlling the production
and manufacturing process. It plays an important role in the Southern business technologies
limited as it basically converts the raw material into finish goods and services as it help to
maximize the profitability of Southern business technologies limited. As the importance are -
The first and foremost importance is that it help to improve the overall productivity of the
Southern business technologies limited. As the ratio of input and output term as productivity
(Schönsleben, 2016). As by increasing the productivity it will help to achieve the business goals
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and objectives. As it gives measures of the efficiency of manager as well as employees that help
to give us exact figure by which it helps to improve the performance of the employees. Also it
helps to use the available resources in the best possible manner to increase the efficiency of
Southern business technologies limited.
It plays an important role in the decision -making process as operation management plays
a crucial role as they handle a critical role in Southern business technologies limited. As it is
known as the heart of the company as it control the entire operation of the business. As it helps to
improve the working of the company as it make good use of resources such as labour, raw
material and other resources (Hasegawa, NEC Corp, 2017). Also, it helps to reduce the wastage
as this is the most important role in Southern business technologies limited as this could be
potentially included lean manufacturing systems effectively reduce waste and manage inventory
cost. As it help to eliminate the wastage in the best possible manner.
Values of Operational management.
Operational management have value in achieving the business objectives. As it is very crucial for
Southern business technologies limited as in increases the effectiveness and improve the
decision-making process further it helps to achieve the goals and objective of the company. As it
plays a huge value in increasing the customers' satisfaction . As it endure that the customers
needs and wants are achieved and properly satisfied in the effective manner. It creates a system
and utilize it properly in order to meet the desired need of the customers. As it will help
Southern business technologies limited in increasing the sales and profitability. It plays an
crucial role in increasing the revenue of the company, as in increase in product quality and
customer satisfaction it will help to increase the revenue. As it will help Southern business
technologies limited to increase its brand image. As this brand image will further help the firm in
garbing large number of audiences. It helps to take the decision in effective manner. Operation
management ensure for quality management which helps to improve the quality of the product in
the systematic manner. It gives priority in resolving the problem of the customers which helps to
grab loyal customer base which help Southern business technologies limited (Parisio, Rikos, E.
and Glielmo, 2016).
Hence, Operational management plays a crucial and essential role in the business as it helps in
many ways and helps to achieve the desired goals and objective. As it helps Southern business
technologies limited in earning large amount of profit.
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L O 4
P6) Factors that may impact operational management.
There are various factors that can impact the management of operations in the organization.
These factors can be divided into micro environment factors and macro environment factors.
These are as follows -
Micro factors -
Micro factors exists in internal environment. These factors can directly impacts the decision-
making ability regarding operations management of Southern business technologies limited.
Such as -
Human Resource factor -
The management of operational activities of the organizations can also be affected by the
knowledge, abilities and skills of the employees that are working in the firm. For example – If
workforce of Southern business technologies limited is highly talented and skilled, in that case
staff can effectively manage the operations of the organization (Slack, N. and Brandon-Jones,
2018).
Marketing factor – The type and quality of the products that customers requires will also
impact the management of operations of the company. According to the changes that are
happening in the demands of buyers, company have to modify its strategies related with
marketing mix. Therefore, it may put pressure on operational management of the firm. Leader
and Manager of firm should take steps to influence workers so that they will not resist such
changes.
Macro factors -
These factors exist in external environment outside the company. These factors can also affect
the operational management of Southern business technologies limited. Such as -
Economic factor -
The changes in economic factors will also impact the management of operations in the company.
Example - When there is change in tax rate by Government, it will impact the capacity of
organization in respect of investment in operation facilities of the company (Dale, B.G. and
Plunkett, 2017).
Competition factor -
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Competition is one of the major factor that may impact the management of operations in
Southern business technologies limited. If, distribution system of other firms are highly efficient,
in that case firm should have to take steps for modifying its operational facilities for delivering
quality services to customers.
Technological factor -
Technology is an important factor that can impact the management of operations in Southern
business technologies limited. Company will have to implement new technology for delivering
the services to targeted segment of buyers. Change in technology will impact the process of
delivering various types of services to the clients. It will also impact the quality of services of the
firm. Manager of the company will have to provide training to employees so that , skills of the
employees will improve, and they can easily use new technology of operations.
Legal factor -
It is also one of the important factor that can impact the ability of company in respect of
management of operations. The laws and regulations of Government can also create a pressure
on Southern business technologies limited for improving the quality of its services. Whenever
there is a change in legal laws firm should modify its operations according top such changes
(DiFazio, R.A. and Chitrapu, InterDigital Patent Holdings Inc, 2016).
Environment factor -
It is another important external factor that can impact the management of operations of the
company. Rules and regulations of Government in respect of protecting the environment will
also affect the operational management of Southern business technologies limited. Leader of
firm should take steps for influencing the employees to perform their work in a way that will not
create negative impact on environment.
CONCLUSION
From the above study it has been based on operation and management as it helps to
convert the raw material into finished product. As it has been concluded the various key
approaches to operations management and also it has been included the role of leader as well as
manager. As there are various approaches such as total quality approach, lean management and
at the last Kaizen which help to increase the efficiency of the business. Furthermore, it has been
articulated that operational management plays a crucial role in the organization as it is known as
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the heart of the business as it run the business effectively on the other hand it has the major value
on the business . Apart from this it has been concluded that all the various factors within the
business environment that impact upon the operational management and decision-making by
leader and manager. As there are many factors that impact the business such as political, social
corporate social responsibilities, ethical and economical factor which influence and impact the
business.
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REFERENCES
Books and Journal
Formentini, M. and Taticchi, P., 2016. Corporate sustainability approaches and governance
mechanisms in sustainable supply chain management. Journal of Cleaner Production. 112.
pp.1920-1933.
Reid, R. D. and Sanders, N. R., 2015. Operations Management, Binder Ready Version: An
Integrated Approach. John Wiley & Sons.
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
John Wiley & Sons.
Schönsleben, P., 2016. Integral logistics management: operations and supply chain management
within and across companies. CRC Press.
Parisio, A., Rikos, E. and Glielmo, L., 2016. Stochastic model predictive control for
economic/environmental operation management of microgrids: An experimental case
study. Journal of Process Control. 43.pp.24-37.
Hasegawa, H., NEC Corp, 2017. Operation management device, operation management method.
U.S. Patent Application 15/340,487.
Slack, N. and Brandon-Jones, A., 2018. Operations and process management: principles and
practice for strategic impact. Pearson UK.
Dale, B.G. and Plunkett, J.J., 2017. Quality costing. Routledge.
DiFazio, R.A. and Chitrapu, P.R., InterDigital Patent Holdings Inc, 2016. Bandwidth
management (bwm) operation with opportunistic networks. U.S. Patent Application
15/057,034.
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