Operations Management Strategies for Muscat Insurance Company

Running Head: OPERATIONS MANAGEMENT 1
OPERATIONS MANAGEMENT
STUDENT’S NAME
COURSE
UNIVERSITY
DATE

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EXECUTIVE SUMMARY
Effective Operations management is very crucial for the success of the business organization.
There are various elements that built the foundation of operations management. The report is
going to focus on Muscat insurance company in Oman. The report has outlined various operation
management strategies that can be applied by the organization to achieve organizational
excellence.

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Table of Contents
1.0. INTRODUCTION.........................................................................................................................4
2.0. Elements of operations management............................................................................................6
2.0.1 Capacity management......................................................................................................................6
2.0.2 .Supply chain management..............................................................................................................7
2.0.3. Procurement.....................................................................................................................................9
2.0.4 Inventory management....................................................................................................................9
2.0.5. Quality management.....................................................................................................................10
2.0.6 Extra care and extra mile customer service..................................................................................13
2.0.7. Risk management..........................................................................................................................13
2.0.8. Competitive advantage..................................................................................................................14
2.0.9 Sustainability...................................................................................................................................15
3.0. Appraisal of the scenarios for the elements in Operations management.................................16
Negative scenario in capacity management...........................................................................................16
Negative Scenario in supply chain management...................................................................................17
Negative Scenario in procurement.........................................................................................................18
Negative Scenario In quality management............................................................................................20
Appraisal of operations management strategy...........................................................................................21
Capacity management...........................................................................................................................21
Operation strategy for supply chain management................................................................................22
Operation strategy for procurement.....................................................................................................23
Operation strategy used in inventory management..............................................................................23
5.0 THINGS TO BE DONE TO ACHIEVE OPERATIONAL EXCELLENCE................................24
In Capacity management........................................................................................................................24
In supply chain management..................................................................................................................24
In procurement........................................................................................................................................24
In Quality management...........................................................................................................................24
6.0 Recommendation...............................................................................................................................25
7.0 Conclusion....................................................................................................................................25
References................................................................................................................................................26
Appendix 1- Diagram indicating elements of operations management....................................................27
Appendix 2 Table outlining Operation management strategy...................................................................28

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1.0. INTRODUCTION
Operations management for the company refers to the various strategies used by the company in
the process of delivering the insurance services to various clients (Harvey, Heineke and Lewis,
2016). Most of the insurance companies are usually successful because of the provision of the
unique services especially in relation to responding the clients’ grievances. An organization that
handles the operations management systematically is usually successful in the process of
achievement of the stipulated goals and objectives. Operations management refers to the process
through which organizations produce various goods and services through the establishment of
unique strategies to enhance the achievement of the organizational goals and objectives. This is
depicted through various organizational functions such as personnel management, marketing,
insurance services etc. Operations management can also be defined as the organizational
function that is involved in the production and delivery of various goods and services
(Linderman and Chandrasekaran, 2010). Organizations can be classified as either manufacturing
organizations or service organizations. Manufacturing organizations engage in the production of
physical tangible items which can be stored as inventory before been finally delivered to the final
consumer. Service organizations engage in the production of intangible items and the degree of
consumer satisfaction is determined by the quality of services provided by the organization to the
final consumer. An insurance company is a service industry due to its insurance service to the
clients. This report is going to focus on Muscat insurance company in Oman. The company
provides both general and life insurance cover in Sultanate Oman. The general insurance
products offered by the company include: liability cover for bad debts, motor insurance cover,
fire insurance cover, marine cover, work men compensation for employees who might be injured

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in the course of duty in the organization, general accident cover. The company offers both
individual and group life and health insurance policies for the Oman citizens.

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2.0. Elements of operations management.
There are various elements which are key to the success of operations management of any given
organization (Krupa, 2017). These elements are: capacity management, supply chain
management, procurement, inventory management, quality management, extra care and extra
mile customer service, risk management, customer satisfaction, competitive advantage and
sustainability. Muscat insurance has to enhance the efficient application of these elements to
facilitate its success in the competitive business environment. These elements are discussed
below.
2.0.1 Capacity management
Capacity refers to the number of individuals that the insurance company can insure over a given
period of time (LaGanga, 2010). This information is very crucial for the operation of the
insurance company because it enhances the process of strategy formulation by the company.
Capacity management is important for the company because it enables the company to offer
quality services for a specific number of clients through the process of formulating efficient
strategies to cater for the needs of the clients. Muscat insurance company has a specific number
of people to be insured under various insurance policies. Capacity management is a strategic
issue for the company because it enables the manager to make long term decisions over the
operation of the company which enhances the success of the organization. Capacity management
refers to the ability of the organization to meet the various demands of the customers with the
available resources. The insurance company should be precise on the capacity to be served. This
is because it enables the organization to formulate marketing strategy to create awareness to the
general public in relation to its existence when there is an under used capacity.