Operations management in business assignment sample - Doc

Operations
Management

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK ..............................................................................................................................................4
1. Describe about company, its history, basic organizational and financial data, the market in
which the company operates..................................................................................................4
2. (a)Analyse Vodafone operations........................................................................................6
(b) Key performance indicators for Vodafone operations......................................................7
(c) KPIs of Vodafone on the basis of internal and external customers.................................7
3. (a) Current products and related services of Vodafone......................................................7
(b) Organization structure of Vodafone.................................................................................8
4.(a) Transforming processes of Vodafone operation with evaluation criteria feasibility,
acceptability and vulnerability...............................................................................................8
(b) Describe the process type(s) in operation.........................................................................9
(c) Layout and flow: which layout type(s) are in use in the operation...................................9
(d) How does this process design aid to optimizing the performance of this operation......10
5.(a) How Capacity and Inventory Planning and Control operation forecasts the customer
demand.................................................................................................................................10
(b) Describe the main capacity limiting factors...................................................................10
6. (a) Supply chain network..................................................................................................10
(b) Describe which design decisions were of biggest importance in taking this place in the
network.................................................................................................................................11
7. Which are main ‘Quality characteristics’ for Operation’s products and services............11
8. How does operation get quality feedback from the customers.........................................12
9. How does operation do internal quality control in their transforming processes.............12
10. (a) Which mechanism is used to continuously improve process and products/services
quality...................................................................................................................................12
(b) Describe approaches operation is taking to improve their ‘Lean-ness’..........................13
CONCLUSION..............................................................................................................................13
REFRENCES ................................................................................................................................14

INTRODUCTION
Operations management refers to a technique of management which concern with
developing and maintaining process of manufacturing or production and design operations and
function of producing products and services. Along with this it will ensure that operations and
functions of business process is conducting in effective and appropriate manner (Hitt, Xu and
Carnes, 2016). Organization which is taken for this assignment is Vodafone which is founded in
year 1991 and its headquarter is in London, United Kingdom. They mainly provide
telecommunication services in United Kingdom and across the world. Products and Services
which is provided by respective company are telecommunications, mobile phone, digital
television and internet service provider, it partner group is Vodafone group plc. This report
contain topics like brief introduction and evaluation of company and its operations, products and
services design. Along with this, it include process which is adopted by this company, planning
for capacity and inventory, supply chain planning, quality of operations and feedback regarding
this.
TASK
1. Describe about company, its history, basic organizational and financial data, the market in
which the company operates
Vodafone is a world's second largest company who operates its business in
telecommunication industry. It is established in the year 1991 by Ernest Harrison and Gerry
Whent and headquartered in London, United Kingdom. It serves a range of products and services
like telecommunications, Internet services provider, Mobile phone, Digital television and many
more. They are mainly operates in 25 countries and its other sector of telecommunication and IT
services in covering 150 countries. Evolution of Vodafone is started in year 1982 along with the
establishment of Racal Strategic Radio Ltd which is subsidiary of Racal Electronics. This is
considered as the largest market of military radio, technology of United kingdom. It also forms a
joint venture along with Millicom which is know as 'Racal' and now a days it is know as
Vodafone. Along with this they are considers as world second largest and fastest growing
company at world wide level (Bromiley and Rau, 2016).

Basic organizational and financial data of Vodafone:-
Cash flow
Period ending 31/3/2018 31/3/2017
Net income 24,39,000 -62,97,000
Operating activities, cash flow provided by or used in
Depreciation 83,04,000 89,80,000
Adjustments to net income 16,10,000 94,82,000
Changes in accounts receivable -11,18,000 3,08,000
Changes in liabilities 2,86,000 -4,73,000
Changes in inventory -26000 1,17,000
Changes in other operating activities -0 -0
Total cash flow from operating activities 1,36,00,000 1,42,23,000
Investment activities, cash flow provided by or used
in
Capital expenditure -49,17,000 -62,85,000
Investments -25,69,000 18,81,000
Other cash flow from investment activities 6,20,000 -14,60,000
Total cash flow from investment activities -98,41,000 -84,23,000
Financing activities, cash flow provided by or used in
Dividends paid -39,20,000 -37,14,000
Sale purchase of stock -0 -0
Net borrowings -7,58,000 -6,48,000
Other cash flow from financing activities -8,10,000 -47,59,000
Total cash flow from financing activities -72,34,000 -90,96,000

Effect of exchange rate changes -4,33,000 -3,13,000
Change in cash and cash equivalents -39,08,000 -36,09,000
Market in which company operates:- They operates there business functions and
operations in world wide market such as Egypt, Kuwait, South Africa, Ghana, Qatar, Libya,
America, Brazil, United State, India, Austria and many more.
Relation with company and reason behind selecting company:- For evaluation and
analysing operations and function of Vodafone in effective and appropriate manner a Project
and operations Manager is assigned. Researcher select this company because respective company
operating its business in worldwide market. This would help in analysing the importance of
operations management in running business successfully at global level.
2. (a)Analyse Vodafone operations
Vodafone helps organizations in making their businesses digitalised by connecting
people, things and places in easy manner. With expertise in connectivity, its leading IoT platform
deliver effective result to a company for its progress and thrive. Its operational activities are
classified in three major components as- Mobile communications, Fixed communications and
Unified Communications. Difference among these operations can be described by using Slack et.
al operations management model:-
Box1: Continually examine and improve operational practice
Box2: Monitor and enhance quality of service to customers

Box3: Provide best data services in terms of coverage, speed and capability
Box4: Provide fastest internet services
Box5: Instant respond to customer problems
Box6: Develop mobile tariff plans and unlimited services as well as offer flexible working to
employees
Box7: Create innovation in services and add more features in mobile phones and speed
connectivity in terms of fixed and unified communications.
(b) Key performance indicators for Vodafone operations
High level of network i.e. forthcoming smartphone portfolio on Vodafone, powered with
Google Nexus One Paired with AdMob mobile advertising platform and increasing speed of
mobile data connectivity, are some key performance indicators of operational management of
Vodafone. It could threaten the viability of other telecommunication companies over next few
years.
(c) KPIs of Vodafone on the basis of internal and external customers
KPIs are considered as set of metrics which regularly access the health of each activity of
business, against its strategic and operational activities. In context with Vodafone, currently
more than 103,564 workers are working in its worldwide business (Slack and Brandon-Jones,
2018). Through continuous innovations by adapting new technologies and geographic diversity,
it allows customers to stay in connection with people around the globe. This would enhance its
customer base more rapidly and having near about 341 million consumers till now.
3. (a) Current products and related services of Vodafone
Vodafone offer a range of products and services to customers for enhancing its base and
generate high revenue. For creating innovation it mostly emphasis on increasing access to data
services, including e-mail, internet, music, 3-D games and television. Currently, in order to gain
high competitive advantage, it has launched a 21Mbps USB stick, named by Vodafone Mobile
K4203-Z, in European market. This idea of product design has originally come from rethinking
the new product process, which assist to deliver sustainable differentiation. As people wants to
get high speed mobile broadband therefore, given USB includes high innovative, attractive and
compact design features.

(b) Organization structure of Vodafone
Vodafone has adopted a new organizational structure in 2010, in order to make
improvement in delivery of strategic goals of business. It is designed to focus on key commercial
and financial priorities by enhancing the customer and commercial strengths, brand advocacy,
shareholder returns and cost efficiencies. The reason behind changes in existing organizational
structure is to reduce layers and simplify the managerial governance (Vodafone Announces New
Organisational Structure, 2019). Here, accountability related to operating companies can be
integrate into two operating regions via- Europe, Africa, Middle East and Asia Pacific. In this
regard, The Group CEO, Director of Strategy & Business Development and CFO are responsible
to implement effective strategies, for maximising shareholder value through investments. Along
with this, Group Marketing, Vodafone Global Enterprise, Vodafone Business Services, Partners
including other commercial units, are also brought into this organizational structure.
4.(a) Transforming processes of Vodafone operation with evaluation criteria feasibility,
acceptability and vulnerability
Having half of a billion subscribers around the world, Vodafone has become the second
largest telecommunication company. Its business transformation process of based on 'Evolution
Vodafone' which includes a state of art and seven-year project (Vodafone Turns Up the Volume
Illustration 1: Vodafone Mobile K4203-Z

on Business Transformation, 2014). It emphasis on transforming global business operation of
respective company to compete with demand of 21st century. This projects includes the
challenges with requirement to transform entire back office process as well as network access in
more than 65 countries. This would have created a pathway for business transformation in
effective manner, that leads Vodafone to win gold medal as SAP EMEA Quality Awards in
2010.
(b) Describe the process type(s) in operation
'Evolution Vodafone' includes a state of 7-year business transformation project which
enables Vodafone in competing with new trends of marketplace, in communication sector. This
operational project of transformation including entire important planning and design phase,
which requires for implementing innovation in products or services (Swink and et. al., 2017). For
unified communication services, this project of Vodafone is based on Future State Operating
Model (FSOM), which includes a set of standardised process of business across its various
networks.
(c) Layout and flow: which layout type(s) are in use in the operation
For transformation process of business operation which is based on 'Evolution Vodafone'
project, Vodafone has used both repetitive and cell layout process, as per business requirement.
Here, repetitive process layout is perfected suited to drive out non-value added activities as well
as transitioning to a JIT environment. While, cell layout helps in promoting JIT (Just-in-Time)
goals through featuring high visibility, unidirectional product flows and fast throughput times.
Objectives related to flow of operations are:-
 Inherent safety: Entire process which constitute danger must not be accessible to
unauthorised.
 Length of flow: Flow of materials and information must be appropriate.
 Clarity of flow: All flow of materials must be well signposted
 Staff condition: Provide flexibility in working hours
 Management coordination: Communication system should be better between managers
and workers
 Accessibility: All machines should be accessible for maintenance and proper cleaning
 Use of space: Layout use should space in appropriate manner
 Long term flexibility: Layouts must be changed periodically

(d) How does this process design aid to optimizing the performance of this operation
By using cell layout process within transformation process, workers tend to have a
greater sense of ownership. By providing more information about view of product and how to
develop the same by transforming raw materials into finished products (Hill and Hill, 2017). This
would help Vodafone in getting more contribution of workers for implementing the concept of
FSOM, in delivering the global unified telecommunication.
5.(a) How Capacity and Inventory Planning and Control operation forecasts the customer
demand
Production and inventory planning is mainly focused on actual production, where it looks
on entire operations by considering as a whole. It aims to minimise production time by
determining the most efficient start and end procedures for completing each activity. Similarly,
supply chain scheduling which is a main component of production planning system, helps
Vodafone in synchronising its material costs. Here, the prime objective of such planning is to
ensure the satisfaction of customers, by creating a cost efficient production system. While
capacity management refers to achieve the maximum level of value added activity within a
specific period of time. Therefore, through planning and controlling capacity, managers of
Vodafone can take decisions to device capacity plans for meeting demand of customers.
(b) Describe the main capacity limiting factors
As per evaluation, it has been analysed that there are few capacity limiting factors which
limits or interrupts work of Vodafone. At first, it has been analysed that the first and foremost
limiting factor for Vodafone is number of employees or worker as number of manpower is very
limited for every organisation and they have to use them in optimum manner in order to produce
maximum outcome (Fredendall and Hill, 2016). Along with this, it has been evaluated that
another capacity limiting factor is hours. It can be said that every organisation is having limited
working hours in which their employees performs assigned tasks.
6. (a) Supply chain network
Supply chain process is an holistic approach used for managing companies boundaries
across the world. As Vodafone operate business in many countries therefore, to satisfy demand
of end customers is the major objective of supply chain management. For this purpose, Vodafone
consider the five main operations of performance objectives that are Quality, Speed,

Dependability, Flexibility and Cost. All these processes are done by coordinating entire
operations on supply and demand side. For this purpose, respective company has implemented
the purchasing, internet and e-procurement process.
(b) Describe which design decisions were of biggest importance in taking this place in the
network
Structuring or designing of international supply chain network is a challenging and
complex decision making process. The inputs for this procedure includes a structural set of
customer zones which are to be served, quantum of products that are to be produced and sold,
data about future situations, demand forecast for various customer zones, transportation and
manufacturing cost, utilisation of resources etc. Provided these inputs at hand, decision is then to
be taken by Vodafone in relation to locating the new service amenities such as warehouses, plant
etc., allocation of resources to production facilities, management of transportation of goods by
way of an effective supply chain network (Hitt, Carnes and Xu, 2016). Owing to optimum
decisions taken by Vodafone in this regard, this company is one of the leading organisations
within telecommunication industry.
7. Which are main ‘Quality characteristics’ for Operation’s products and services
Quality characteristics refers to the inbuilt characteristic of particular product or services
which reflects actual quality of product. These characteristics helps company in testing their
prepared product so that they could be delivered at market place for usage purpose. In context to
Vodafone, the manager of this company is using some of the main quality characteristics for
operation's products or services. All of them are defined as below:
Connectivity: This quality characteristic mainly emphasises on checking the quality of
manufactured product that whether they are able to connect with another device or not. It also
check functionality of product.
Reliability: In this, manager of Vodafone, checks reliability of product before
introducing it at market place. Its main aid is to ensure that product will not fail after launch
within specified time limit.
Conformance:
Durability: This characteristic evaluates and monitors overall lifeline of product.

Maintainability: In this, manager of Vodafone checks quality of services which will be
offered to users of their product. Here, they mainly evaluates overall servicing procedures for
repairing and maintaining their delivered products.
8. How does operation get quality feedback from the customers
Customer feedback is the best way to identify actual thoughts and perception of
customers about their products or services which are being used by them. In relation to
Vodafone, it can be said that manager of this company are taking regular based quality feedback
from customers in order to know about their lack areas which is influencing interest of customers
as well as sales of products in negative manner (Ketokivi and McIntosh, 2017). Operation's
manager of Vodafone emphasis on monitoring social channels on which company is already
registered and interacting with customers at regular basis. They also reviews feedback from own
websites as on this customers expresses their actual experience with company.
9. How does operation do internal quality control in their transforming processes
Transforming process is the way through which organisations improves their product and
services by adding more inputs so that it could be modified and provide value to customers. With
reference to Vodafone, it has analysed that manager of this company conducts internal quality
control during their transforming process. It can be said that manager of Vodafone controls
internal quality by initially adopting specific framework in order to evaluate their existing
services. This evaluation is basically based on employees, suppliers and partners feedback.
Through this management team identifies areas of improvement. Along with this, they also
controls those areas which are used in excessive way without being utilised in optimum way.
10. (a) Which mechanism is used to continuously improve process and products/services quality
Vodafone is a well known brand in telecommunication industry, management of this
company is placing regular based efforts for improving their process and service quality. This
helps company in providing high quality products or services to customers. In context to
Vodafone, the company is using Lean production (Bazargan, 2016). This approach mainly
emphasises on providing value services to customers with minimal resources. It also aims to
deliver high valued product or service to customer with zero waste. It can be said that by using
this mechanism at regular basis existing process of Vodafone can be improved. Along with this,
it will also upgrade quality of products and services offered by this company.

(b) Describe approaches operation is taking to improve their ‘Lean-ness’
Even though lean production is an effective mechanism but still it requires some
improvement for maximising its efficiency. In context to Vodafone, it can be said that manager
of this company can combine total quality management and lean production in order to improve
their quality of work and maximise their profitability with effective production (Moutinho and
Vargas-Sanchez, 2018). In addition to this, it can be said that this approach will also help
Vodafone in raising their customer satisfaction as customer are getting better quality product.
This also reduces number of customer complains as a result it enhances market share.
CONCLUSION
From the above specified report, it has been analysed that effective operations
management practices helps company in maximising efficiency level of company. It also
enhances performance of workforce which directly increases profitability of company. Further, it
has been analysed that manager of large scale companies are required to evaluate their existing
their organisational structure so that modification can be done at right time. Along with this, it
can be said that quality characteristics plays an essential role in the growth of company as checks
product effectively before introducing it at market place. This secures brand name of company
and also avoids chances of any kind of scandal which could occur in future. On the basis of
overall evaluation, it has been identified that customer feedback is an effective method or
approach that aware operational team about customers experience. Thus, with regular based
feedback companies can improve their existing products or services and maximise their profits
by delivering them good product.

REFRENCES
Books and journals
Hitt, M. A., Xu, K. and Carnes, C. M., 2016. Resource based theory in operations management
research. Journal of Operations Management. 41. pp.77-94.
Bromiley, P. and Rau, D., 2016. Operations management and the resource based view: Another
view. Journal of Operations Management. 41. pp.95-106.
Slack, N. and Brandon-Jones, A., 2018. Operations and process management: principles and
practice for strategic impact. Pearson UK.
Swink, M. and et. al., 2017. Managing operations across the supply chain. New York, NY:
McGraw-Hill Education.
Fredendall, L. D. and Hill, E., 2016. Basics of supply chain management. CRC Press.
Hill, A. and Hill, T., 2017. Essential operations management. Macmillan International Higher
Education.
Hitt, M. A., Carnes, C. M. and Xu, K., 2016. A current view of resource based theory in
operations management: A response to Bromiley and Rau. Journal of Operations
Management. 41(10). pp.107-109.
Ketokivi, M. and McIntosh, C. N., 2017. Addressing the endogeneity dilemma in operations
management research: Theoretical, empirical, and pragmatic considerations. Journal of
Operations Management. 52. pp.1-14.
Bazargan, M., 2016. Airline operations and scheduling. Routledge.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI
Tourism Texts. Cabi.
Online
Vodafone Announces New Organisational Structure. 2019. [Online] Available
Through:<https://www.vodafone.com/content/index/media/vodafone-group-releases/
2010/new_structure.html>.
Vodafone Turns Up the Volume on Business Transformation. 2014. [Online] Available
Through:<https://blogs.sap.com/2014/04/14/vodafone-turns-up-the-volume-on-
business-transformation/>.