Resource Management and Operational Efficiency

This assignment delves into the critical role of operational management and resource allocation in achieving organizational effectiveness. It highlights the potential consequences of mismanaging resources, demonstrating how it can lead to significant production issues within organizations like hospitals. The document emphasizes the significance of strategic planning, problem identification, and productivity enhancement through effective operational management practices.

STRATEGIC & OPERATIONS MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................6
TASK 3............................................................................................................................................9
CONCLUSION ...........................................................................................................................10
REFERENCE ................................................................................................................................11
BOOKS $ JOURNALS .......................................................................................................11

INTRODUCTION
Strategic and operations management is very important for every organisation. It is an
area of management concerned with designing and controlling the process of production and also
redesigning business operation in the production of goods or services. Strategic Operations
Management Nature of Strategic Management, The ultimate purpose of strategic management, is
to help organisation increase performance through improved effectiveness, Efficiency and
Flexibility. A strategy is a way of doing something. It usually includes, formulation & setting up
of goals and set action plans for accomplishing the goals. It is important because it allows fewer
resource and less time to be devoted and create a framework for the internal communication and
it helps to integrate the behaviour of individuals and provide the basis for the clarification of
individual responsibilities (Slack, 2015). These steps are must take in every organisation to
understand the loopholes and what problem arise within the origination to understand and to
solve the problem these are very important.
Report assesses that there are various type of wastages happening within the hospital i.e.
over production, long waiting hours, rework and over processing etc. All such wastages are
found within the hospital and thus it is essential for management of hospital to undertake
effective processes in regard to overcome such wastages and bring appropriate solutions so that
best quality care facilities could be provided to patients. Here. Royal Free hospital has been
undertaken which is rated as one of the most excellent service provider for patients. In the
current hospital it ha been evident that there are various resources which are not managed
effectively and thus it results in too much wastage.
TASK 1
As per the view of Berman Evans, (2013), Spectrum of volume and variety issues could
be identified as various number of people visiting the hospital for different issues. For instance,
within Royal Free hospital, patients visiting for kidney transplant then management of hospital
need to adopt different innovative processes which is suitable for patients and thus solve their
issues. However, at the time when large volume of patients are arriving for solving their disease,
hospital needs to undertake highly specialised processes through the spectrum to high volume
processes (Berman Evans, 2013). Also, it is essential for management of Royal Free hospital to
identify new process for different health problems faced by patients such as kidney transplant.

Proper process needs to be followed by hospital management such as diagnosing the issue,
providing proper suggestion regarding treatment, admitting the patient and implementing the
operation through using innovative technology that helps in improving the patient satisfaction
(Johnson, 2014). There are different types of wastage happening at the hospital and thus it needs
to be reduced or minimized which helps in improving the patient health conditions and thus
providing them better living condition. It involves over production, rework, obsolete technology,
over processing and high waiting time for patients etc. All such wastage would increase patient
dissatisfaction and thus founds wastage within the hospital. Management of Royal Free Hospital
identifies that there are various resources available within hospital but they are not used
appropriately. Thus, it is essential for operations manager to plan effective solution regarding
utilising the resources efficiently so that it overcomes wastage. However, Brown, Bessant and
Lamming, (2013), argued that there are different types of process available within hospital and in
regard to implement the same it would help in minimizing the wastage so that best quality health
care services can be delivered to patients. For instance, different care home uses different process
which is beneficial for them to maintain their quality and thus overcome wastage happening at
the hospital. Through adopting proper communication process it assists health care providers to
understand the needs of patients and provide them appropriate quality services required by them
in regard to overcome their health issues. It also helps in minimizing wastage such as reducing
waiting time of patients so that they can feel satisfied with the quality services delivered to care
users (Brown, Bessant and Lamming, 2013). As compared with other care setting in London it
adopts informal communication process and thus they do not interact directly with the care users
and provide the services according to their guidelines. The care professionals of such hospital
aims to take their own decision and does not involve patients as well as their family members in
decision making in relation to deliver quality care services. Management of care setting assess
that through such way wastage could be minimized and attain desired results.
Reim and parida (2016), stated that as compared to other care organization it adopts
another effective process for delivering care services to patients in which no harm should be
provided to them. It is significant for care home workers to assess the needs of care users and
then provide them appropriate quality services so that proper needs could be fulfilled (Reim ,and
parida 2016). However, it is also significant for care users to overcome their health issues and
attain results. With the help of such effective process it aids in minimizing the wastage of over

processing and thus attain desired. In contrast to this, care home at another location assess to
render best services but without interference of care users that leads to negative image of care
setting.
However, Davis (2006), 6argued that care home also could adopt another process of
reducing medicines waste by implementing appropriate pharmacy teams so that they can control
and monitor the drug spending. It is considered as the most crucial step and thus increases
pressure on staff members of another care home in London to contribute towards minimizing
medicines waste and also avoid unnecessary supply to recycle medicines which are no longer
required. With the help of this, Pound 20 billion saving could be done by care organization in the
next 4 years (Davis, 2006). As compared to the care nursing home in another city they identify
the maximum type of drugs required by them so that wastage of drugs could be minimized. They
appoint health inspectors for regular checking so that they could effectively oversee the handling
of waste.
As per the opinion of Brown Bessant, Lamming (2013), operation management is
important for every business to manage and to use the resource in the most effective manner for
the better result in the hospital if the management is not perfect that it will be so difficult to
generate the profit and give the best service to their customers (Brown Bessant, Lamming, 2013).
Hospital operations encompass the totality of those health care functions that allow those who
practice health care delivery to do so. As the health care industry undergoes dramatic reform, so
will the jobs of those who manage health care delivery systems. However, Bozarth Handfield
(2016), argued that although health care operations managers play one of the most vital and
substantial roles in the new delivery system, the criteria for their success are being defined now.
The new and vital role of the operations manager has been stunted in its development, which is
primarily because of old and outdated antipathy between hospital administrators and physicians
(Bozarth Handfield, 2016).
As per the hospital facing the problem because of mismanagement and the hospital have
sufficient resource, but they are not utilising the resource in the best manner. And to fix this
problem, the operation management will help to take out the best result out of it.
Prajogo ,Mcdermott, (2008), sxplained that Once in the role of operation management,
there are a lot of responsibilities that need to be handled by the individual in this role (Johnson ,

2014). Hospitals are multifaceted systems, where there are hundreds of operations going on at
one time. In hospital management manager perform a very crucial role and that all depend on
him manager must have maintain their ethical responsibilities while operations throughout the
hospital are running smoothly, from surgery schedules, patient flow, record updates and
confidentiality, waste management, and equipment maintenance and set up, to name a few
(Prajogo ,Mcdermott, 2008). There is process theory in operation management to mange and use
all the resources in the best manner. There are different processes being identified which are
adopted by Royal Free Hospital i.e. operating in multifaceted systems in which various
operations are running at one time and thus rendering services to patients, service provider aims
to undertake ethical responsibilities so that operations could be run smoothly, maintaining the
record, preparing schedules for surgery and protecting the data I,e, confidentiality etc. Duff,
(2009), all such processes needs to be managed appropriately with the help of using appropriate
resources and thus overcome wastage. For instance, Royal Free Hospital would like to undergo
an effective process theory system so that all the available resources needs to be utilised
effectively and thus create proper management of resources in regard to satisfy the needs of
patients. Following proper processes at the time when patients enter the hospital i.e. identifying
their problem, diagnosing by the care provider, necessary medical tests and delivering
appropriate care service is considered as the process and thus for it various resources are required
that needs to be adequately used in regard to manage and optimum utilisation of resources (Duff,
2009).
As per the Alberti, Pizzurno, (2006), process theory can be the determined as way
through which Royal Free hospital make improvement in the operations in which management is
facing issues. Process theory is very important for making decision for quality, cost and the
delivery of product or service provided. In this context, there are about three areas which it
covers. With this respect, it includes lean production, agile philosophy and just in time. Lean
production can be determined as a way with the help of which Royal Free hospital focus on
reducing the wastage. Moreover, it also focuses over the waste that is caused due to overburden
(Alberti, Pizzurno, 2006). For example, when the care providers are provided with many tasks
which has to be done within speculated time, then it becomes difficult for them to complete the
tasks on time and that also without affecting the quality. In this context, wastage increases and
care providers fail to maintain the quality of work. Alberti, Pizzurno, (2006), argued that this

affects the business negatively. Further, it includes agile philosophy is a term in which firm
creates tools, training and processes that enables to respond quick services to patients. In
accordance with the case, Royal Free hospital needs to make sure that they provide their care
providers with proper tools so that they will be able to make sure that the waiting time can be
reduced (Usman, vanhaverbeke, 2017). Moreover, it also aims at reducing the cost and this is
generally done by making staffs skilful and knowledgeable. Lastly, it includes just in time, in
which organization needs to make sure that they need to make proper evaluation so that they will
be able to divide the work and proper time can be given for each of the patient. Each of the
process will be helpful in order to reduce the wastage. In this context, in health and social care,
there are cases in which wastage occurs due to different set of reasons. In this context, it includes
wastage due to ineffective workers, lack of tool, improper coordination, etc. (Wilkin, 2017). In
order to overcome these set of issues or wastage, the process given above is helpful. It enables to
develop coordination among workers and management understands the needs and requirement of
workers and accordingly they are provided with proper tools with the help of which they will be
able to reduce wastage and proper services can be provided.
TASK 2
As per the Nakagawa (2006), economic order quantity is the order quantity that
minimises the total costs and ordering costs. Economic order quantity is an equation for
inventory that determines the ideal order quantity a company should purchase for its inventory
given a set cost of production, demand rate and other variables. The importance of economic
order is it balances the costs of placing an order and the costs of holding the material in stock.
While it has its place, the field of logistics has evolved quite a bit since it was first used.
Economic order cost is considered as the number of units which is added to the inventory in
order to minimize the total costs of the inventory. Here, Royal Free hospital is required to
identify its EOQ and thus assess the available inventory within care home which helps them to
fulfil the needs and thus utilise the resources appropriately (Nakagawa, 2006). Therefore, it helps
in improving the resources and overcome the mismanagement of resources in regard to improve
efficiency of hospital. EOQ helps Royal Free hospital to identify the inventory in relation to
machines and medicines available for usage within the stock and thus it is essential for
operations manager to manage the inventory so that patients could be delivered quality services.
However, it is significant for manager of Royal Free Hospital to undertake appropriate steps so

that mismanagement of resources could be overcome. There are different types of inventory
available within hospital i.e. drugs, therefore, it is essential for operations manager to manage the
inventory appropriate otherwise it would affect the business functions. As per the demand of
drugs it identifies the shortages occurring regularly that affects the patients and thus it helps in
overcoming the issues faced by medical team with hospital. Also, hospitals could not store large
amount of drugs because of limited budget and thus using different inventory management
techniques it would help in minimizing the inventory costs so that best results can be attained.
Stated that Reim, Parida, (2016), there are certain limitations in economics order quantity
An Economic Order Quantity is the optimal number of order that minimizes total variable costs
required to order and hold inventory, that is to say, that EOQ helps us to determine the
appropriate amount and frequency when ordering and holding inventory and the cost of ordering
remains constant (Reim, Parida, 2016). And No cash or settlement discounts are available, and
the purchase price is constant for every item. There is no delay in the replenishment of the stock,
and the order is delivered in the quantity that was demanded, i.e. in the whole batch. There are
various limitations faced by economic order quantity as operations manager need to identify the
issues faced Royal Free hospital. Sometimes manager of hospital assumes that drugs are over
quantity and thus it needs to be provided proper drug management so that it could be overcome.
Hospital faces issues relating to implementation of economic order quantity theory and thus it is
essential for Royal Free hospital needs to undertake effective EOQ measures and thus overcome
the calculation of costs in regard to attain desired results. For instance, drug is one of the
important inventory of Royal Free Hospital and thus it needs to be managed significantly so that
resources could be utilised appropriately. Witte (2014), argued that peration manager aims to
undertake effective inventory management technique in regard to minimize the cost and thus use
economic order quantity theory. It is beneficial for Royal Free hospital to adopt effective
inventory tools and thus manage them efficiently so that appropriate results can be achieved.
With the help of economic order quantity it would help in managing the drugs appropriately so
that identifying the available drugs with hospital and thus helps in improving efficiency so that
patients could be given required amount of drugs.
As per the view of Nakagawa (2006), inventory management is a big issue nowadays.
Inventory management also is known as a stock management is a crucial part of working capital.
Economic order quantity is one of the most important and famous models used in widely for the

effective inventory system in the organisation. Economic calculates the ordering quantity of
inventory using inputs of carrying the cost, ordering cost, annual usage of the said inventory
(Davis, 2006). There are two question arise in every organisation first that 'how much inventory
should be ordered' and second is 'when should it be ordered' (Nakagawa, 2006). As per the
different companies like manufacturing and merchandising inventory management is
overemphasised because it covers the major part of the asset and also shares of working capital
and hence it is necessary to ensure that it does not block so much of finance of the organisation.
There are various tools have been recommended for inventory management like JIT
Management(just in time), TQM Management(total quality management) and EOQ
Management(economic order quantity) and EOQ model is most efficient models it helps with the
quantity order, and the quantity to be ordered should be optimum which optimizes everything
whether it is the space required or the money blocked in the inventory. And it is important that
quantity order should be sufficient to meet the needs and insufficient inventory can lead to
stoppage of production ( Nakagawa, 2006).
EOQ can be an effective tool in inventory management to find optimum quantity to be
ordered. But, it cannot be adopted as one stop solution for total inventory management.
Therefore, other techniques and methods need to be considered and adopted along with EOQ.
Inventory management is important from the viewpoint that it enables to address two
important issues:
The firm has to maintain adequate inventory for smooth production and selling activities. It
means that investment in inventory should neither be excessive nor inadequate and it should be
optimum. The main aim of inventory management is to maintain the optimum level of inventory.
(Duff 2009) Excessive investment in inventory results into more cost of the fund being tied up so
that it reduces the profitability, inventories may be misused, lost, damaged and hold costs
regarding large space and others.
It has to minimise the investment in inventory to enhance firm's profitability that means
insufficient investment in inventory creates stock-out problems, interruption in production and
selling operation (Zhao,develtere ,2010). The importance or significance of inventory
management could be specified as below:
 Inventory management helps in maintaining a trade-off between carrying costs and
ordering costs which result into minimising the total cost of inventory.

 Inventory management facilitates maintaining adequate inventory for smooth production
and sales operations.
 Inventory management avoids the stock-out problem that a firm otherwise would face in
the lack of proper inventory management.
 Inventory management suggests the proper inventory control system be applied by a firm
to avoid losses, damages and misuses.
TASK 3
According to the Johnson (2014), Royal Free hospital is required to identify the different
issues being faced by them such as immediate need for resources i.e. drugs which is essential in
relation to identify the needs of patients and providing them similar resources in order to fulfil
their needs. Thus, implementing such resources would result in fulfilling the needs of patients by
providing them similar resources and thus attaining results. Each and every patient possess
diverse needs and therefore, it is significant for hospital to provide proper resources to them so
that their needs could be fulfilled. Here, the Royal Free hospital is facing is required to provide
immediate need for resources because due to the availability of the rating system by patients,
hospital may face criticism and which might lead to reduce in government funds (Johnson,
2014). Therefore, it is essential for the care home workers to identify the needs of individual
patients and then provide them appropriate resources so that needs could be fulfilled. However,
argued that Prajogo and Mcdermott (2008), hospital and patients both may face different
problems such as unavailability of resources at the time of need may raise issue for patients in
the form of dissatisfaction while, Royal Free hospital may face issues regarding reduction in
funds lend by government. All such issues will affect the customers in a negative way and thus it
is essential for Royal Free hospital to take proper care of their patients and then it is essential for
them to provide proper trust and support so that satisfaction among patients could be attained
(Prajogo and Mcdermott 2008).
According to the second issue, in case Royal free hospital do not restore the resource in
time, then it will have negative impact over the firm. Patients will not get proper treatment and
they will develop negative perception within their mind. It is the responsibility of the
management to make sure that all the required resources are placed on time. Care providers face
serious issues as they fail to provide adequate information and services to their patients. Due to
this issue the rating system gets negatively affected. Moreover, hospital has to face issues of

funding cut and firm face losses. It is important for the management to make sure that this issue
is solved. In this context, TQM is an effective strategy that enables to make sure that there is
proper management among staff members (Bozarth and Handfield, 2016). It requires information
to be passed on properly so that management could take proper steps with the help of which
problems can be solved. Through TQM the issue of lack in resources will be solved. This way
hospital will be able to make sure that proper services are provided by care providers to their
patients (Alberti and Pizzurno, 2006). This will also help to increase the profitability and the
issues of funding cut will also be solved.
Total Quality Management is the continuous process of reducing or eliminating errors in
manufacturing, streamlining supply chain management improving the customer experience, and
ensuring that employees are up-to-speed with their training. The basic aim of total quality
management to hold all parties involved in the production process accountable for the overall
quality of the final product or service. Total Quality Management refers to management methods
used to enhance quality and productivity in business organizations. Implementing TQM would
help in improving the total quality management of Royal Free hospital so that they can help in
overcoming the issues faced by hospital and thus it would help in improving the efficiency of
care providers so that patient satisfaction can be attained. Through managing the available
resources as per the needs of patients and providing them appropriate whenever they required
would help in satisfying their needs. Royal Free Hospital should implement TQM approach
within their hospital because it would help them to improve the needs of patients and whenever
patients are satisfied from the services rendered then they would rate the care home
appropriately. Thus, it would not cut the funds received from government and then it enhances
the brand image of hospital.
CONCLUSION
This project showcases the importance of resources in the organisation and how to use all
the resource in most useful manner and to develop it which step we can take to make it batter.
This project shows that mismanagement in the allocation of resources can cause the very big
issue in the productions in the company and organisation like the hospital if there is no proper
resource and management cause so much of problem relating to that and understand the
importance of operational management and how much it is important. In the organisation, these
steps are very important to improve the productivity and to find the problem in the organisation.

REFERENCE
BOOKS $ JOURNALS
Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.
Berman, B.R. and Evans, J.R., 2013. Retail management: a strategic approach. Pearson Higher
Ed.
Brown, S., Bessant, J.R. and Lamming, R., 2013. Strategic operations management. Routledge.
Bozarth, C.B. and Handfield, R.B., 2016. Introduction to operations and supply chain
management. Pearson Higher Ed.
Johnson, P.F., 2014. Purchasing and supply management. McGraw-Hill Higher Education.
Prajogo, D., Mcdermott, C., 2008. International Journal of Service Industry
Management.Emerald Group Publishing Limited.
Alberti, F., and Pizzurno, E., 2006. European Journal of Innovation Management. Emerald
Publishing Limited.
Usman, M., and vanhaverbeke, q., 2017. European Journal of Innovation Management.Emerald
Publishing Limited.
Wilkin, c., 2017. Education + Training.Emerald Publishing Limited.

Reim, W.,and parida, v., 2016. International Journal of Operations & Production Management.
Emerald Group Publishing Limited.
Davis, P., 2006. Cross Cultural Management: An International Journal. Emerald Group
Publishing Limited.
Nakagawa, S., 2006. Social Enterprise Journal.Emerald Group Publishing Limited.
Duff, R., 2009. Social Enterprise Journal.Emerald Group Publishing Limited.
Zhao, l., and develtere, P., 2010. Social Enterprise Journal.Emerald Group Publishing Limited.
Witte, A., 2014. Journal of Management Development.Emerald Group Publishing Limited.
University of Exeter.2014. (online). Avaiable through.
<https://www.tutebox.com/2881/business/management/strategic-management-vs-operations-
management/> acceced on 15th december 2016.
Tutebox.2016. (online). Available
throught.<https://www.tutebox.com/2881/business/management/strategic-management-vs-
operations-management/> accesed on 15th dceember 2016.