Strategies of Operation Management

OPERATIONS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Operations Management.........................................................................................................1
Significance of Inventory management policies for controlling production cost..................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Operation management refers to the part of the management which plays an important
role in controlling and designing the process of production within the organisation. It ensures
that the organisation successfully turn the inputs into outputs in the effective manner. This
reports present the importance of operation management in the Jaguar. It is the British
multinational car manufacturing company and it is brand of Jaguar Land Rover. This study also
defines the challenges and strategies of operation management in the enterprise. In this we will
also include operations scheduling techniques of Jaguar. The present report will further explain
the significance of inventory management policies.
MAIN BODY
Operations Management
Operation management is the important part of the management which helps in the
attainment of organisational objective because it the process of planning, organising and
controlling the production process of Jaguar company which increases the productivity as well as
profitability of the firm. Operation management helps in proper utilisation of the all the available
resources of the firm which leads to the high profitability of the Jaguar company. The possible
efforts of the employees and raw materials are used in making high productivity with minimum
wastage. It handles the various issues of Jaguar company in terms of productivity such as design,
operations and maintain the system of production used for making goods.
Plan With Operation Scheduling Technique
Jaguar motors corporation aims at developing an effective business plan with operation
scheduling techniques. These techniques helps in effectively using the time and resources of the
company to bring positive results. Operations scheduling helps in both manufacturing and
services function of Jaguar and it also relates to utilization of equipment, facilities, receipt of
materials and human resources. It also provides the measure of the manager as well as employees
in terms of their performance or efficiency which results in the optimum utilisation of all the
available resources to reach the end goal of the enterprise. It includes various business activities
which takes place in the organisation and contributes in the making production for meeting
customer requirement.
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Operations scheduling deals with effective utilization of work force, techniques and
equipments, lead time, levels of inventory and processing time. Effective operations scheduling
helps business organisation to reduce waste and reduce the occurrence of stock-outs. Jaguar
Motors Corporation aims at making a business plan that helps in effectively performing the
operations scheduling techniques.
The business plan made by Jaguar in order to maintain effective operations of scheduling
includes Loading which refers to assigning jobs to work-centres and also to various machineries
within work centres. One process or job can be done on one machinery then there is no difficulty
for scheduler. But, if one process requires more than one machinery, it makes the process
complicated. Two approaches can be used to effectively handle the process of Loading which are
finite loading and infinite loading. Infinite loading is used when job are given to work centers
without regarding its capacity and it requires priority and appropriate rules. Finite loading aims
at considering capacity of work centres and then compares with processing time in order to
check that process time does not exceed capacity. Jaguar can make use of the finite loading
approach because the organisation has limited capacity and runs three shifts. This will brings
effective results as it reflects an upper limit capacity.
Sequencing is the second step of plan that is concerned about determining the job process
order. It determines both the processing of jobs at work-centre and process of work at work
stations also. Jaguar may have to face the problem due to lengthy jobs and heavy loaded work
centres. Jaguar can make use of various priority rules while selecting the order of jobs which
needs to be processed and reduce the idle time at work-centres. Random job selections from
queue having equal probability or jobs that requires shortest time for processing. Jaguar can also
make use of first come first served rule that aims at processing the jobs in order of their arrival in
work-centres. Various rules will help to effectively manage the sequence of processing and
utilizing time and cost effectively.
Gantt Chart is the next step in plan of Jaguar for operations scheduling effectively. This is
the visual aid regarding loading and scheduling. Jaguar can make use of this Gantt Chart to
effectively organize and clarify the actualised and conscious utilization of resources within a
fixed time-frame. Gantt Chart involves time-frame and scheduled resources which will help
managers for making trial-error schedules in order to get the knowledge of impacts that will have
due to different arrangements. Schedule and load are the two different types of Gantt Chart that
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can be used by Jaguar. Load chart explains loading and idle time for departments and machinery,
and also explains scheduling of specific jobs for starting and finishing and expectations for idle
time. Whereas, schedule chart will help in monitoring process of job using vertical and
horizontal axis for jobs in process and time.
The last of plan for operations scheduling is scheduling of service operations which helps
to encounter issues and problems which are not seen in manufacturing process. The service
nature may also lead to create problem, i.e. service intangibility or inability to store services.
Jaguar may also face the problem of random demand for services and it creates difficulty for
scheduling of workers. Waiting line theory and queuing theory will help in solving the problems
for Jaguar. The overall plan that is discussed above will help in Jaguar organisation to effectively
held the operations scheduling and bring effective results and outcomes. It will bring
improvements in operations management of the company that will lead to increase productivity
and profits as well.
Layout Processing
In manufacturing process, layout processing refers to designing the plan of plant that
helps in improvising efficiency by effectively arranging the equipments and machinery
accordingly with its functions. The production line needs to be designed in a way that it helps in
eliminating the waste within material flows and also effectively handling the inventory
management. Jaguar aims at effectively make the process layout as it is facility configurations
that involves arrangements or grouping together of functions with similar nature. The main
purpose of process layout is to process products or provide services which have variety of
processing requirements (PROCESS LAYOUT, 2018). Jaguar uses Virtual reality approach in
layout processing which helps in cutting cost and also money which is spent on product
development. Virtual reality layout process creates 3D environment in black canvas room in
which ceiling acts as screen for 3D projection. Jaguar needs to make use of this layout
processing in order to configure the facilities according to different functions or process. And it
leads to bring flexibility which is required to handle different process and routes requirements.
The improvement in process layout brings advantage of reducing transportation cost, time or
distance. Jaguar can also gain benefits of flexibility, saving cost, provide motivation to
employees and also protects the system.
Work System Processes
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The work system process refers to linking of different activities in order to producing
products or services that can meet demands and wants of customers. It involves combination of
different people, tools, techniques, machinery, materials and also requires improvements. Jaguar
has integrated its system process in effective way that helps in gaining process efficiencies and
also provides more accurate forecast for overall business organisation.
Significance of Inventory management policies for controlling production cost
Inventory management refers to strategies adopted by business organisation to store,
track, deliver and order inventory and stock of products or goods. It is a collection of different
strategies, tools and techniques that helps business organisation to control the incoming and
outgoing of stocks and also focuses on minimising the losses and wastage which directly
maximises the profits. The effective work system adopted by Jaguar brings benefits of planning
for manufacturing and designing its luxury vehicles.
Inventory management policies helps in outlining the guidelines and ensures that
inventory is controlled and costed properly. These policies also helps in preventing the losses
and shortages. The inventory management policies are applied to inventory items that includes
raw materials, goods in process and finished items. The main purpose of inventory management
policy is to lay down process and procedures for procurement management and also controls
over inventory and stock items according to related legislation and other departmental policies
and directions. Following are explained some inventory management policies that are used by
Jaguar to effectively manage the inventory or stock of company. Inventory-management policies
helps organisation to order, receive and account for managing stock products.
Procurements
this refers to process of purchasing which Jaguar can use for ordering and receiving
inventory. Procurement managers are responsible for reviewing the purchase orders and ensuring
that it includes information regarding authorization and other valid required information and also
it cost.
Valuing inventory
this refers to inventory which is sold needs to be removed from ledge accounts in order to
check the gross profits of the company. Weighted average, LIFO and FIFO are the different
methods used for valuing inventory.
Inventory Accounting System
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This is the specific procedure used by organisation for updating the accounting ledger
and managing the inventory effectively. Periodic and perpetual are two different types of
accounting system.
Physical Controls
This relates to storing and counting of inventory items which helps in effectively
managing the inventory and bringing positive outcomes. Physical control and safe storing of
inventory is important as it safeguarding the inventory from loss and theft Following are given
importance and significance of inventory management policies to Jaguar:
 It leads to avoid wastage as limits the dead stock.
 Inventory management policies helps in saving storage cost (Hill and Hill, 2017).
 it helps to make less spoilage of products and items.
 Protects Jaguar from demand fluctuations of products and services.
 Policies and procedures of inventory management helps in providing better services yto
customers.
 This also aids in effectively continuing operations of production.
 Inventory management policies reduces the risk of loss and increases productivity.
 Policies also helps in minimising the administration pressure and workload.
 Inventory policies helps to protect output fluctuation (Explain Benefits or Importance of
Inventory Control, 2012).
 Working capital can be used effectively through inventory policies and procedures.
 The various inventory management policies also facilitates activities of cost accounting.
Following are given different methods of inventory management which can be used by
Jaguar to effectively manage the inventory and reduce the wastage and losses of business and
also to increase the productivity and profits of company:
1. ABC Analysis: This methods of inventory sorts stock into 3 categories as per their demands
and costs holdings. The three categories according to ABC analysis are :
A- items: In this best selling items are kept which don't occupy much space in warehouse and
cost as well.
B- items: In this mid-range products are kept which are regularly sold but it leads to cost more
than A- items for holding.
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C- items: The remaining of stock is kept under this and it is found in large quantities and also
makes up bulk cost while holding it.
The ABC Analysis helps Jaguar in keeping the working capital costs as it identifies the
nature of products as which items needs to be reordered and which items don't need to be stocked
(Ivanov, Tsipoulanidis and Schönberger, 2017). This method helps in reducing obsolete stock
and also optimizes rate of stock turnover.
2. Just In Time Inventory: This method of inventory management holds a minimum amount of
inventory or stock and works on making what is required, when its required and in what amount
it is required. This inventory management methods helps in minimising the risk of outdated and
spoiled stock, reduces cost of renting and insurance. Just in time inventory method reduces waste
and also maintains healthy cash flow. Organisation adopting to this method can easily identify
production errors and fix them faster which further increases efficiency of business operations
(Tidy, Wang and Hall, 2016).
3. FIFO and LIFO: Jaguar makes use of this inventory method for effectively storing and
delivering products. FIFO and LIFO are accounting methods that provides value to inventory and
also effectively reports to profitability.
FIFO stands for First In First Out and explains that the items which comes first in the
inventory are the first ones that leave. Jaguar uses this FIFO method in order to get rid of oldest
inventory first. Jaguar uses this method in handling the non-perishable and homogeneous
products. Whereas, LIFO stands for Last In First Out and it explains that the items which comes
last in the inventory needs to leave first (Wood, Wrigley and Coe, 2016). Jaguar makes use of
LIFO method for managing the perishable items. Using LIFO inventory management helps
Jaguar to properly manage its food items stock. But, LIFO method can result in increasing the
older stock which never gets sold out or shipped. Therefore, Jaguar aims at effectively managing
the inventory and stock of perishable and non-perishable items.
CONCLUSION
Operations management plays an important role in any business environment. The above
report explores the importance of operation management within Jaguar. Various issues in
relation to the functioning of operations management are identified. The report explains the
meaning of operations management and what makes it important with organisations business
environment. The steps for effectively scheduling the operations are discussed in the report. At
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last, the report explores the methods of inventory used in the process of operations management
and what considerations are taken to ensure that the inventory is being managed well. The
overall report helps to determine the efficiency of operations management and its requirements
in today's business environment.
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REFERENCES
Books and Journals
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Routledge Companion to Cross-Cultural Management.
Cherrafi and et.al., 2016. The integration of lean manufacturing, Six Sigma and sustainability: A
literature review and future research directions for developing a specific model. Journal
of Cleaner Production. 139. pp.828-846.
Edwards, J. S. and Rodriguez, E., 2018. Knowledge Management for Action-Oriented Analytics.
In Analytics and Knowledge Management. (pp. 21-50). Auerbach Publications.
Fernie, J. and Sparks, L. eds., 2018. Logistics and retail management: emerging issues and new
challenges in the retail supply chain. Kogan page publishers.
Hill, A. and Hill, T., 2017. Essential operations management. Macmillan International Higher
Education.
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.
Ivanov, D., Tsipoulanidis, A. and Schönberger, J., 2017. Global supply chain and operations
management. A Decision-Oriented Introduction to the Creation of Value.
Jiménez-Jiménez and et.al., 2015. Total quality management performance in multinational
companies: A learning perspective. The TQM Journal. 27(3). pp.328-340.
Kazami, I. and et,al., 2016. Business operation management system. U.S. Patent. 6.321,204.
Tidy, M., Wang, X. and Hall, M., 2016. The role of Supplier Relationship Management in
reducing Greenhouse Gas emissions from food supply chains: supplier engagement in the
UK supermarket sector. Journal of Cleaner Production. 112. pp.3294-3305.
Wood, S., Wrigley, N. and Coe, N. M., 2016. Capital discipline and financial market relations in
retail globalization: insights from the case of Jaguar plc. Journal of Economic
Geography. 17(1). pp.31-57.
Online
15 Inventory Management Techniques You Need to Use Today. 2018. [Online]. Available
through: <https://dearsystems.com/inventory-management-techniques/>
PROCESS LAYOUT. 2018. [Online]. Available through:
<https://www.referenceforbusiness.com/management/Int-Loc/Layout.html>
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Explain Benefits or Importance of Inventory Control. 2012. [Online]. Available through:
<http://kalyan-city.blogspot.com/2012/10/objectives-benefits-importance-of.html>
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