Operations Management: Theory and Application for Entrepreneurs

This article explores the theory and application of operations management for entrepreneurs. It covers topics such as operations strategy, teamwork, and implementation. The article also provides recommendations for companies looking to adopt operations management principles.

Running head: OPERATIONS MANAGEMENT
OPERATIONS MANAGEMENT
Name of the Student
Name of the University
Author Note

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Table of Contents
Answer to Question 1......................................................................................................................2
Part a............................................................................................................................................2
Part b............................................................................................................................................4
Answer to Question 2......................................................................................................................8
Part a............................................................................................................................................8
Part b..........................................................................................................................................11
References......................................................................................................................................12

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Answer to Question 1
Part a
An entrepreneur is an individual who undertakes new and unknown responsibilities in
order to convert them to suitable opportunities. The new business undertakings which are
confronted have many uncertainties (Rajagopal, Kaliani Sundram & aidu, 2015). While some
unknown values are easy to identify, some are not and are commonly known as the unknowns. In
this context, the operations management has a well defined theory based on the management of
the known unknown. These ways are available in the field of operations management which
might be useful to an entrepreneur in minimizing the risk and conducting a successful business
(Harrison & Lock, 2017). The given nature of several kind of research may help in developing a
theory related to entrepreneurship
Singular Known Unknowns over a Single Period
Operations Management deals with making optimal decisions when a single source is
uncertain. While management deals with various factors, in many arenas it is useful for an
entrepreneur to receive a single idea based on the market size or the price. This is often
described as the deal killer and is helpful to an entrepreneur to recognize these signs at an early
stage of the business enterprise.
Thus with reference to operations management, a general approach towards optimization
of a single variable can be useful to the entrepreneurs (Heizer, 2016).however this often leads to
a problem where the entrepreneur might be less concerned with the decision that is beneficial for
the maximum value and might concentrate more on those decisions that are suitable in an overall

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situation. In the given scenario, a robust optimization may be useful and helps in minimizing the
worse contingency.
Singular Known Unknowns over Multiple Periods
Operations management is primarily concerned with the topics relating to flexibility,
agility and the logic of dynamic programming. This situation requires the decision maker to face
an evolving business environment and the system keeps varying. The decision maker is required
to seek a response which is optimal, and helps the business to adjust with the present as well as
future requirements.
Entrepreneurship is primarily concerned with looking out for between opportunities that
help a firm to survive in the volatile environment, many entrepreneurs seek to find ways to do so
at in this concern, and operations management can come useful to an entrepreneur.
Multiple Known Unknowns
As stated previously the optimization models involve a single uncertain variable, there
may be certain parameters which may be unknown. One of the approaches made in this concern
is the computer based simulation which helps in analyzing the environment and make decisions
where a large number of variables are involved (Smith, Maull & CL Ng, 2014).
Monte Carlo simulation is a tool used in the given aspect. These tools have a long
traditional and theoretical aspect with relation to handling complex problems. Applying this
entrepreneurship will help them to enrich the dividends.
Unknown Unknowns

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In the final aspect, the most difficult problem needs to be addressed. Many entrepreneurs
face the problem of uncertainty which is not yet identified. Operations Management offers much
in third dimension Application of TQM theories will help to identify problems of uncertainty.
When an entrepreneur is concerned with introducing a new product to the business environment,
they need to carry out experiments (Jacobs, Chase & Lummus,2014).This experiment must be
based on a disciplined approach which is offered by the application of Operations Management
and the related discipline of Total Quality Management.
Part b
Operational Entrepreneurship can be described as the management and selection of the
transformational processes. These processes are used for the evaluation recognition and
exploitation of various opportunities. These opportunities are primarily used for creation of value
which here primarily refers to the research opportunities present for at the interface of operations
management and entrepreneurship (Krajewski, Malhotra& Ritzman, 2015)/
According to Slack (2015), management has been underutilized for various opportunities
like the follow:
 The knowledge and motivation which is necessary for opportunity recognition
 Evaluation of a recognized opportunity in order to determine the authenticity (Slack,
Brandon-Jones & Johnston, 2013).
 Role that feedback from the exploitation of the opportunity plays in determining better
opportunities

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Operations Management can be described as the area of management which is primarily
concerned with designing and controlling of the processes of producing and redesigning business
operations so as to produce better goods and services. It primarily involves ensuring that the
business operations are efficient enough to produce better goods and services. It sees to it that
the costs involved in the production process are minimum and that all the customer demands are
met efficiently. Operations management manages the procedure from the starting point which
involves converting the input to the output.
It covers various segments like work in the banking organizations, hospitals, companies,
suppliers, customers, technology and others. It can be involved in both day to day work as well
as strategic purposes (Slack, 2015).
Entrepreneurship can be defined as the process of designing launching and running a new
business which is generally small in the beginning. The people who are responsible for this
venture are known as entrepreneurs. Entrepreneurship is the capacity to develop and manage a
business along with a risk which is the cost of gaining the profit.
Hence, if the two topics are combined, it can be stated that the concept of operational
entrepreneurship can be primarily concerned with the application of the principles and notions of
operations management in the field of entrepreneurship.
Operational entrepreneurship will be primarily concerned with seeing to it that the
entrepreneurs will be able to apply the efficient process of operations management in their
entrepreneurial journey as well. It will see to it that the entrepreneurs use the various methods
stated in the management of operations to evaluate, search and decide upon a given opportunity.

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This will help them to test the viability of the operations efficiently and decide whether the
venture will be successful in the future or not.
As stated previously, Krajewski, Malhotra Ritzman (2015),state that the concept of
operations management remains underutilized in many spheres and one of those basic spheres is
in the field of entrepreneurship. Entrepreneurship can make use of the concepts in various fields
of the entrepreneurial stages. The manner in which they may make use of the concept is given as
follows:
The knowledge and motivation which is necessary for opportunity recognition
Any entrepreneurship can be successful if the owner has recognized a good opportunity
and seen to it that the business has the capability of performing well. This opportunity
recognition is extremely relevant and can be done with the help of converting the problems
existing into opportunities (Burke, 2013). However, the procedure is not always easy and it
becomes difficult to search for new ideas in today`s world where almost all amenities are
available and no concept is new. For this reason, the experts suggest that operations management
can be used to provide the knowledge which is essential for the idea generation and for the
motivation which is an important aspect of any idea. Using the systematic methods as stated in
the subject, the entrepreneurship can easily attain to the needs of the opportunity and become
successful.
Evaluation of a recognized opportunity in order to determine the authenticity
Not all ideas are viable and for this purpose it becomes important to evaluate every idea
carefully and determine the authentic of the idea. Operational Management can come to the
rescue of the entrepreneurs at this time as it can determine the proper process using which the

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ideas can be tested easily. These procedures suggested are very systematic in nature and provide
a step by step guidance to the users (Slack, Brandon-Jones & Johnston, 2013). he idea can be
tested based on various parameters which are defined by operations management.
Role that feedback from the exploitation of the opportunity plays in determining better
opportunities
All opportunities are not viable and sometimes the entrepreneur needs to see to it that the
opportunity which did not work out well is replaced by other viable opportunities. This can only
take place when the feedback from the previous opportunity has been taken and well researched
on before deciding on the alternate opportunity. Very often business enterprises tend to ignore
the feedback received from the previous opporutnirs, however this should not be the case and the
owner needs to analyse the feedback using principles of operations management ..

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Answer to Question 2
Part a
Operations Management
Opertaions management can be defining as the optimal utilization of the resources in an
organization and using that efficiency in the manufacture and delivery of goods and services.
Operations management is not only concerned with one business domain, but is concerned with
all fields in an organization (Olhager, 2013). Before undertaking the previous paper, my idea
about the field of operations management was very limited, however at present, I have obtained a
deep understanding of customer demands, communication skills and analysis skills.
Operation management aims at redefining the different processes in an organization and
comprises of the given components (Phan & Chambers, 2013).
Operations Strategy
Operations strategy forms the primary component of operations management and is
essential for any sector while they are planning for the different operations. An operations
strategy remains incomplete without proper qualified personnel and for this reason it is very
important for the business operations to work on a well defined strategy which would bring
about success for the organization as a whole.
Teamwork

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Team work is an essential aspect of operations management. Team work primarily refers
to the coming together of the various members in a team and working together towards the
success of the organization. Only as a team will the organization is able to manage the different
aspects of the processes and according to me, team work is the first step towards the optimal
management of operations.
For me, operations management will be extremely helpful in carrying out the various
tasks that I will carry out in future. These tasks may be related to tasks in the university or in the
corporate world. Using the principles of operations management, I believe that I will b successful
in attaining success.
In the university field, operations management will help me to organize my routine and
ensure that I have mapped to productivity aspects will in the organization (Brown & Bessant,
2013).On the other hand, operations management in the field of a corporate house, will help me
to guide the employees as to how their moves must be so that the vision is achieved.
There have been many texts written on the domain of operations management and these
tasks have further helped me to increase my knowledge and analyze the different practices that
can be conducted. I would like to make certain recommendations based on the implementation of
operations management in an organization.
The implementation of an operations strategy forms the core strategy for any commercial
organization as it ensures optimum utilization of resources (Drake & Spinler, 2013).It does not
concern with one particular department but many departments ranging from delivery,
manufacture, marketing and selling. It helps in producing according to the consumer demands.

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Operations strategy is the basis of operations management. It is critical for the success of
an organization. It is advisable for all companies to use the operations strategy concepts so as to
achieve success.
Hence, it can be stated that various companies have implemented the operations
management concept and they have been able to achieve success. Those who have not adopted
have had to face various facilities in a business environment. I have learnt that if the firm wants
to perform well, it needs to apply the principles of operations management.
From the given video, it could be gathered that the Frito Lay Company makes excessive
use of the principles and policies of operations management which have shown their impact on
the success of the organization.

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Part b
Operations management can be described as an initiative that the organization is required
to take in order to ensure that all the operations of the organization are managed well. It is
primarily concerned with the processes that are behind every activity. The management of these
processes automatically brings out better results for the firm as a whole.

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References
Brown, S., & Bessant, J. (2013). Strategic operations management. Routledge.
Burke, R. (2013). Project management: planning and control techniques. New Jersey, USA.
Drake, D. F., & Spinler, S. (2013). OM Forum—Sustainable Operations Management: An
Enduring Stream or a Passing Fancy?. Manufacturing & Service Operations
Management, 15(4), 689-700.
Harrison, F., & Lock, D. (2017). Advanced project management: a structured approach.
Routledge.
Heizer, J. (2016). Operations Management, 11/e. Pearson Education India.
Jacobs, F. R., Chase, R. B., & Lummus, R. R. (2014). Operations and supply chain
management (pp. 533-535). New York, NY: McGraw-Hill/Irwin.
Krajewski, L. J., Malhotra, M. K., & Ritzman, L. P. (2015). Operations management: processes
and supply chains. Pearson.
Krajewski, L. J., Malhotra, M. K., & Ritzman, L. P. (2015). Operations management: processes
and supply chains. Pearson.
Olhager, J. (2013). Evolution of operations planning and control: from production to supply
chains. International Journal of Production Research, 51(23-24), 6836-6843.
Phan, P., & Chambers, C. (2013). Advancing theory in entrepreneurship from the lens of
operations management. Production and Operations Management, 22(6), 1423-1428.

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Rajagopal, P., Kaliani Sundram, V. P., & Naidu, B. M. (2015). Future directions of reverse
logistics in gaining competitive advantages. A review of literature. International journal
of supply chain management, 4(1).
Slack, N. (2015). Operations strategy. John Wiley & Sons, Ltd.
Slack, N., Brandon-Jones, A., & Johnston, R. (2013). Operations management. Pitman.
Smith, L., Maull, R., & CL Ng, I. (2014). Servitization and operations management: a service
dominant-logic approach. International Journal of Operations & Production
Management, 34(2), 242-269.