Operations Management and Supply Chains

The assignment analyzes the concepts of operations management and supply chain management. It examines operational risk mitigation strategies, drawing upon real-world examples like insurance in hazard management and lean manufacturing. The discussion also highlights the importance of sustainability in waste management and drinking water quality guidelines. Finally, it touches on online resources for further learning in these fields.

Operational Management

Table of Contents
INTRODUCTION................................................................................................................................3
Meaning of the Supply Chain Management....................................................................................3
Importance of the Information Technology in the Supply Chain Management..............................6
Theory of Production...............................................................................................8
Concepts of the Supply Management System.................................................................................8
CONCLUSION..................................................................................................................................10
REFELECTION.................................................................................................................................10
REFERENCES...................................................................................................................................11

INTRODUCTION
Supply Chain Management is a oversight of materials, information and finances and they
move in to a process from supplier to manufacturer, and to wholesaler to retailer and at last to
consumer. (Klein, 2009). The study is based on the role of the supply chain management activities
and the role of information technology in it. The purpose of the report is to find out and address all
those essential elements which can affect the suppliers and their role for using information
technology in business. In this report meaning of the supply chain management, its components,
roles and essentials factors are described. Along with this the benefits of IT for suppliers is also to
be elaborated in the study.
Meaning of the Supply Chain Management
There are three main areas in a business these are marketing, finance and operations. Supply
Chain management is a study which focus on the various aspects of the business such as effective
planning, control of a manufacturing and services. This is a process in which the entity has to take
care of all the essential elements of production and manufacturing. It includes the models,
equations, representations and physical models (Wahlström, 2009). These models help in
understanding the cost factors which are to take place in the manufacturing and production
processes. SCM is a continuous process in it the materials, information and finances are used to
move in the direction and coordinating and integrating flows are managed in the business. Thus it
is very important to use all the essential element in taking care of the aspects of this process.
Quality, production, inventory, accounting management and other functions are used in this process.
Decision making process is also a part of the supply chain management, material, labour and cost
factors are calculated and evaluated in the process. Operational manger must have the knowledge of
the latest trends and technologies so that this process can be used in an effective manner.
Thus is the most important strategy or term which is used in the business so that the
manufacturing activities can be done properly and in a specified manner. There are some rules and
policies which are to be taken care for taking the most important decisions in the process of the
SMC (Huckman and Zinner, 2009). SMC decides the strategic issues including size of the
manufacturing plant, project management methods and implementing the structure of the
information technology. Other levels include inventory level, work in progress level and raw
material acquisition, quality control and maintenance policies. There are numerous formulas which
are used and determined in the operational management studies. It is very important for the
suppliers to follow all the regulations and rules so that the costing can be done properly and the
control on the various activities can be done. Business operations in the production and services are
involved to utilize the resources in optimum manner.

GKN is a Public limited company it makes parts for the automotive and aerospace industry.
The suppliers follow the structure of the Supply chain management and it has the wide working
network (Holt and Ghobadian, 2009). It is the administration which create the highest level of the
efficiency in the organizations. Operational management utilizes resources from staff, materials,
equipments and technology. So it is a wider term which should be used in the business areas to
produce the final goods in such manner that there cannot be remained any error with the quality of
the product. In it two most important terms are used such as the supply chain and logistic. The
system is based in various terms.
Supply Chain management is wider term and it is compulsorily be used in the organizations.
In this approach Economic order quantity and PERT network chart is used to demonstrate the things
in clearer manner. There are some models which are used in SMC, and these models help in
assessing and knowing the reality. The decision making can be done by using these models in the
most effective manner. The prime models of this approach are described as under:
Operational research Models: these are the most important models which are used under
SMC, approach. In it the management has to take care of the external and internal elements which
can have any kind of impact on the matters and their effect on this strategy. Suppliers can have the
benefits by using the information technology. (Shekdar, 2009).
Inventory Models: In the level of the inventory is identifies and the input and output methods
are used to evaluate the implications of the inventory levels. There is the IT tool which can be
helpful for the entity in making it aware on the issues related with the quick supply.
Forecasting Models: these are the most important models which are used by the manager so
that the decisions can be taken accordingly. It is very essential to estimate the future fluctuations
and this can be advantageous for the organization, to forecast the future by this the fluctuations can
be identified and the workings can be done accordingly (Rippel, Suchánková and Teplý, 2012).
Network Models: This the model which can be used for making the proper networks with the
suppliers and vendors so that the material can be distributed and sold accordingly.
Production Planning and control Method: This model explains that the planning can be
done for the production and control of the all the functions. The manufacturing activities can be
done by using various elements of IT. And these are cost effective for suppliers.
Variances Analysis: in it the study is done on the variances which have taken place while
giving a completion to the manufacturing process. Mangers' make an effort to remove these
variances.
Supply chain Management
It is the mixture of the materials, information and finances. It is a process I which the goods
or the material is delivered from suppliers to manufacturers and from manufacturers to wholesalers

and retailers. It involves the integrating and coordinating the flow of the factors in the organisations
and outside the organisation (Bridgart, and Bethune, 2007). This can be divided in three parts such
as the Product Flow, it includes the movement of the goods to the customers as well the process of
the returning of the goods is also covered in it. Information flow includes the transmitting the orders
and taking a report of the delivery status of the products. Apart from this the financial flow is
considered to credit terms of the payment, schedules of the payments and title ownership
arrangements. Thus, these three methods or flows are used for opting the most suitable operational
management strategy.
The first element of the supply chain management is strategic planning. In it the operational
manager takes all the decisions regarding the future growth of the business. It is a constant process
in it the manager pays attention on all the factors and elements which are having any significance
on the manufacturing process of the company. So it is the most important tool of the company as all
the major issues which are going to take place can be considered in it. And the long run view of the
company can be opt by this (Matsumoto, Onoyama and Komoda, 2010). The second element of the
supply chain management is the Demand planning. In the management of the corporate pays
attention on all the marketing activities which are going to take place in the near future. And are
having an influence on the demand of the products. It is the most important feature which can have
effect on the prices of the produced good, as if the demand will be high then the company can avail
the high prices of its products on the other hand when the demand will be low then the entity will
have to avail low prices to sustain in the market. So there is a great role of the demand policies in
the operational management.
Illustration 1: Supply Chain Managment Process

Another factor of the supply Cain is the supply planning, in the company makes proper plan
for the future supply of the products and services. If the demand is high then the supply will also be
increased and this can be an indication to the company that the production is going to be higher. But
when the demand is low then the producers can have the idea that why they produce the goods if
they are not in demand so the supply will automatically be reduced. So the supply planning is also a
great part of the suppliers. (Mingers and White, 2010). Procurement is the next step of the supply
chain management in it the goods and products are procured in such manner that they cannot have
any adverse effect on the trade policies and the decisions can be taken accordingly. When the
production is done in the bulk then the procurement of the produces goods is done so that they
cannot be destroyed. After this the manufacturing is done. It is the factor which is used by suppliers
after assessing or evaluating all the internal and external factors. In it the material is supplied by the
suppliers and this is converted in to the finished goods. This is the production process and it needs
the machinery and technology so that the production can be done in the most suitable way.
Warehousing another major aspect of the supply chain in it the produced goods are stored so
that they can be tested and distributed. All the finished products are placed at the warehouses and
these are the storage centres where the products are placed. And then these are distributed to all the
places such as wholesalers, retailers and dealers (Fugate, Stank and Mentzer, 2009). After this the
order fulfilment is the next stage in which the sellers sell the finished good to the clients and
customers. Transportation is the last element of the supply chain and in it all the costs related to the
carriage and fright is included. So the transportation cost is having a great impact on the supply
chain elements. So the sellers has to add the transformation cost in the direct or indirect cost
elements. Thus in above mentioned way the role of the supply chain management for the suppliers
has been described and discussed.
Information technology can be used in the operational management process and in the SMC.
In it the contacts can be made with the clients and the healthy relations can be maintained. The
feedback can be taken about the goods and services which have been distributed or sold. So the
operational manager can take care of all the factors which can have any significance due to
information technology. So the use of information technology can be a wide and helpful for the
company (White, 2009).
Importance of the Information Technology in the Supply Chain Management
Today's era is of the technologies, so it is very important for the operational manger to work
with the use of the latest technologies and trends (Klein, 2009). He must have the ability to
communicate in effectively, to inspire other working members and managing the projects in the
most efficient way. This is very important for him to work with the best potential and efforts so that

all the tasks can be completed with the effective way. When the technology is used in the
manufacturing process then all the tasks can be completed with the most efficient way (Loorbach,
2010). This can be helpful in managing the time of the workers as well. The cost can also be
reduced by taking concern of the latest advancements in the production process. The new
machinery can be used by suppliers while production process, this can be helpful in completing all
the workings at a particular time and the optimum use of the resources can be done. The era is of
the technologies in it the information technology is having very vital role. The computers have
become the need of the time and they are to be used widely in the business. The relationship can be
managed in the more effective manner by using the IT tools. The emails can be sent to the
stakeholders so that they can have each and every information about the systems and the materials.
Along with this the updates can be circulated by using the information technology.
In earlier times the communication used to be carried with the clients at every level at paper.
The paper based transaction used to be slow. Then the use of the information technology was to be
neglected. It based competitive resources have more value and the suppliers can understand
properly. IT can be useful as it can give the initiative in such manner as the cycle time reduction,
implementation and cross fictional processes can be managed properly (Huckman and Zinner,
2008). By using the information technology the customers can be served in most efficient manner. It
is a wider term and it can be used in given manner in the SCM. These are described as under:
Remote Input- Output mode: in this case the member participates from remote location can
use the application system and can provide their views and suggestions.
Application Process Mode: In it the members develop and shares the single system such as
query of the inventory or order processing system.
Multi Participants Exchange Mode: it is the best tool as in it the number of the partners can
get attached at any level and can work for the development of the any level of the supply chain
management.
In the supply chain management system both the hardware and software system is
addressed. As far as IT is considered in it Base rate, Carrier select & match pay are the IT tools
which have been developed and can be used for the forecasting of the freight cost, transportation
rates, analyse cost and carrier effectiveness are used (Holt and Ghobadian, 2009). Along with this a
new software which is developed can be sued for the demand forecasting, replenishment and
manufacturing tools for planning and activities. Along with this there is the transportation network
optimization can be used for bidding and ward process. Logicality planning solution is developed to
provide a programme which is capable for managing the entire supply chain. So IT is having
various advantages which can be used and make the SCM more effective. By this all the tasks can
be done properly and in efficient manner. Cost can also be reduced and the quick supply can be

done.
When the information technology is used in SMC then the suppliers will be having benefits
of it as they can have the good quality of the products. New products with the latest technology can
be developed and this all can be done by using the IT. The suppliers can made the changes to
manufacturing process, so that the design can be made. Distribution channel can be beneficial as the
dealers can have the advantages of the IT tools, they can directly communicate with suppliers and
can ask for the desired things (Heckl and Moormann, 2010).
Increased efficiency: Suppliers can have more and complete information of the business they
serve as the IT can allow them to meet their requirements.
Just in time: Information technology is having very vital role in the SCM as the client can
get each and every information at time. And the supplies can be provided to him on the time.
Reduced Costs: it is the most important element for the company as IT can emerge all the
tasks to be get completed at time. And the cost will also be reduced by using the measures of the IT
in SCM.
Theory of Production
SCM is a wider term in it the theory and concept of the production is included. It provides
the relationship between inputs and outputs, the theory helps the firm to determine profit
maximization. Suppliers can use IT in this system as they can use this theory in a modern way.The
essence of the production is the utility based concept. In it the raw material, manufacturing cost and
cost of labour is included. The company has to include all the essentials which are having any role
in the manufacturing and production process. It describes that the elements of the input are used in a
optimum manner so that the output can be achieved accordingly. So the SCM is a wider term in it
the cost and raw material elements are added and observed (Lambin, Chumpitaz and Schuiling,
2009). It is the duty of the manager to take care of all the concepts and to control them. This is the
duty of him to give the instruction and orders to the employees and has to make that work
completed. Production function is the prime aspect which is directly related with the supply chain
management. In the business there is the most use of the department the company in providing
training the employees of the department so that all the essential functions can be done and the
factors can be used. The economy can fluctuate the cost and production level of the supply chain
management in it the economic variations such as demand, supply, inflations and recession are
having great influence.
Concepts of the Supply Management System
Design of goods and services: These concepts defines that the Supply chain manager has the
duty to provide the products and services in such manner as they cannot violate the interest of the

any person. And the quality of the goods must be the best as it can attract more customers towards
it. The products of the company should be in such manner as they can address the needs of the
market (Heckl and Moormann, 2010). IT can be able to give the good designs of the products and
services and this can be advantageous for the suppliers also. Suppliers can have benefit from these
models as their workings can be completed on time.
Quality Management: In this the company has to maintain the high quality of the products
and outputs so that the consumer expectations can be met out. Suppliers should be prepared to apply
the standards at larger scale so that the best and high quality products can be provided to the
customers. Suppliers will be having the quality management as the IT can be used in it. Apart from
this the suppliers can have benefit of IT in managing the quality of the products.
Process and Capacity Design: The process of the SCM involves some lines of the
production. This concept focuses on the ingredients which are used to make a quality product. This
system is used to maximize the efficiency and capacity in all the areas of the production (Michalski,
2008). IT can be used to present the designs of the goods which can be beneficial for the suppliers.
Location Strategies: It is the most important strategy in it the company and the manager
must use that location in which the sales is to be increased and the cost of the production can be
minimized. The company has to manage its production capacities in such manner as they will be to
opt the most suitable strategies.
Layout Design and Strategy: layouts facilities the proper movement of people, materials and
information. These layouts can be used to present an idea of the product to the customers so that
they can efficiently use the strategies. Suppliers can make the product as per their own design and
choice.
Maintenance: In supply chain management there are some maintenance teams which are
using their skills to maintain the raw materials and products so that supply chain management
approach can be influenced with this (Cepeda and Vera, 2007).
The basic components of the Supply cahin management are Inputs, process and Outputs. As
far as the inputs are considered in it the raw materials are taken such as human resource, material,
technological resources. Process if the next element of the OM, in its conversion or transformation
of these products or raw materials is done. Output is the feedback of the customers to the
organisation.
Wal Mart is one of the most important example for the SMC. It uses low inventory levels
and prices to generate faster sales based on low prices. Keeping low inventory is the indication for
the company to have the low prices and it also indicates that the products can be replaced with the
new ones (Radnor and Bucci, 2007). High demand and low prices leads to increase the sales of the
company. So it is the strategy of the inventory management which is used by Wal Mart.

So the corporates can use the operational management strategies so that they can produce
the best quality product and services in an effective cost. When the goods are manufactured then it
is the duty of the manger to use the resources in optimum manner so that the cost can be controlled
and the profit maximization can also be done (Manzini and Bindi, 2009).
CONCLUSION
In the given report it is described that the Supply chain management is a systematic
approach and it can be sued in the organisation so that the trade and production activities can be
managed in the most suitable manner. It is a wider term and can be used in business widely. The
study has concluded that the information technology is emerging day by day so it is the need and
requirement of the time to use the elements of the technology in the business so that the Supply
chain management activities can be done properly and the cost can be controlled. It can influence
the trade operations as it can invite the more efficiency in the trade and the company can quickly
response to its stake holders. Thus the report has described the role of the Information technology in
supply chain management in operating the business activities. It is the core part for the trade
operations and the profit and cost elements can be determined by this.
REFELECTION
As per the given study material I learnt that the suppliers can have benefit if the information
technology is used in the company. Because due to this they will be able to communicate with the
suppliers at any time and the communication with the wholesaler and retailer will also be done in
the sufficient manner. So as per my opinion it is the great technology which can be used while
operating the manufacturing business activities. In it the most prominent factor is that it can be
helpful in making a connection or contacts with the dealers and their quarries or issues can be
addressed properly. Thus, I realized that the role of technology is emerging day and it is very
important for businessmen to carry the operational activities by opting all these latest technologies
and advancements. I learnt that information technology is very helpful for the suppliers as they get
all the services at time and in a desired manner. The study has changed my views about
management as I learnt to use the resources in optimum manner. Along with this the cost effective
measures which can be taken in the process of operational management is the great aspect for me to
understand and accept.
In terms of personal reflection, it can be stated that the present study has helped me in
getting aware of the various aspects linked with operations and supply chain management. The
present module has helped me in getting insight into the meaning and concept of supply chain
management. Along with this, I have also gained in-depth knowledge about the overall process of

supply chain management and how it is used in businesses. This module has supported me in
developing my knowledge and skills related to operations management. Apart from this, the module
has also influenced my thinking process to a great extent as I was required to think more critically
and consider several aspects before writing this module. In future, the learning acquired from this
module will be used by me in carrying out the task and operations related to supply chain and
operations management in more effective manner.

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