Operations, Logistics and Supply Chain Management

This report examines the application of operations, logistics, and supply chain management theories in the context of Land Rover, a leading automotive company. It analyzes key concepts like Six Sigma, inventory management, and total quality management, exploring their impact on quality improvement, new product development, and overall business success. The report also provides recommendations for Land Rover to optimize its operations and achieve greater efficiency.

Understanding Operations, Logistic and
Supply Chain Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Managing quality ...................................................................................................................1
New product and service development .................................................................................4
CONCLUSION AND RECOMMENDATIONS............................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Operations management is the field of administration concerned with creating and
controlling procedure of production and replanning of organization operations in the production
of products and services. In addition to, logistics is normally applying for complex and detailed
operations of company (Hitt, Carnes and Xu, 2016). It is administration of flow of things
between point of beginning and consumption in relation to meet customer needs by the
organization. It is the part of supply chain management. This study is based on Land Rover
which is an automotive company. This report will explain different theories of operations,
logistics and supply chain management. It will also analyse and apply solution of operations
management.
MAIN BODY
Managing quality
Operations Management Theory
Operations management is responsible of ensuring that company's procedures are
efficient in relation to utilize of resources that are required and to meet needs of customers.
Administration of transaction of organization that consider such as working with suppliers,
dealing with customers, utilizing technology. Theories of operation management means
strategies utilized in making and managing business practices to make upper level of efficiency
in company. There are many theories of operations management such as lean production, six
sigma, total quality management, etc.
Six Sigma Theory: Six Sigma is the set of techniques and tools that are used for
improving process. This theory tries to improve the quality of output of procedures by
determining and eliminating causes of defects and decreasing variance in production and
activities of Land Rover. It utilizes set of quality management techniques, mainly empirical,
statistical system and make particular structure of people within company (Bozarth and
Handfield, 2019). Six Sigma tasks adopt particular series of stages involving process mapping,
trending charts, calculation of possible defects, ratios and statistics to achieve the defined
objectives. Philosophies of Six Sigma involves that make efforts on result of process, production
procedure that can be determine, measure, evaluate, improved and controlled, improvement of
quality that is sustained accomplish in the organization.
1

There are many methods involved in Six Sigma theory such as DMAIC, DMADV, etc.
DMAIC stands to define, measure, analyse, improve and control. It refers to defining problems,
measuring aspects, analysing the data flow, improving and controlling. DMADV refers to
defining objectives, measuring features of quality critically, analysing, designing details and
verifying. DMAIC determines the stages of starting with referring problems and ending with
lengthy permanent solutions. Six Sigma directs on decreasing procedures of variance and
increasing process control. The utilization of this theory is to collection of numeric and problem
solving tools taken from Kaizen. With the help of it, company makes efforts on improving the
quality for accomplishing measurable and quantitative fiscal results that help powerful and
passionate management leadership with making decisions on the basis of verifiable information
and statistical methodology.
Logistics Management Theory
Logistics is administration of flow of property between point of starting and factor of
consumption to meet the needs of consumers and organization. The physical units commonly
include combining of data flow, managing material, manufacturing, packaging, stock, storage
and security (Bromiley and Rau, 2016). There are some intangible portions such as data and time
period. By dedicated simulation software, business model, analysis, visual and optimize
complexity of logistics. It is normally implemented tangled function and detailed company. The
primary field of logistics break down such as digital, capital, distribution, production logistics,
etc.
Inventory Management Theory: Inventory management is a sub-speciality within
functions study and managing operations that is obsessed with creation of inventory system to
decrease the costs. Company faced decisions in relation with production, warehousing, supply
chain and it provides numerical relation for logistics. This theory assists to modify production
and warehousing of many units of goods and decrease the cost. For controlling of managing
inventory, there are many theories such as Just in time (JIT), inventory depletion, production
level. Inventory management theory helps in solving the issues which are faced by company
such as infrequent large order, changes in demand and function of decoupling two separate
functions.
There are many causes for managing inventory such as balance in between supply and
demand, procurement, production, marketing, economies of scale, transportation, manufacturing,
2

etc. The inventory control problem is a difficulty faced by company for making decisions to meet
demand for its goods (Schönsleben, 2016). The trouble can be sculptured utilizing numerical
tools of optimal control, dynamic scheduling and system improvement. On the basis of their cost
– system and customer services requirements, company utilise inventory management theory.
With the help of it, company makes efforts on reducing the cost and to have effective storage of
goods and services. The just in time theory helps in managing inventory for promoting and
making goods that is necessary to fill orders. With the help of level of production, decrease
labour costs by creating stock at regular rate to neglect limitation and depression. Land Rover
creates inventory management theory for controlling stock based on marketplace situations.
These theories help to capital and capacities of production of company.
Supply Chain Management (SCM)
It is the administration of flow of products and services that includes occurrence and
storage of raw material of work-in-progress stock and finished products from point of beginning
to element of consumption. It is defined as design, plan, performance, control and observation of
supply chain operations within aim of making new value, increasing competitive structure and
investing logistics worldwide (Bing and et.al., 2016). Supply chain management includes highly
attraction of industrialized technology, operation management, logistics, information practical
application and marketing. There are many theories of SCM that includes total quality
management, just-in-time, customer relationship management, etc.
Total Quality Management (TQM): TQM comprises company wide attempts to install
and create permanent condition where workers constantly improve their capabilities to meet
demand of goods and services that find specific quantity by consumer. It is administration theory
to long term success by customer satisfaction. All employees are entering in improving the
procedures, goods, services and culture of workplace (Total Quality Management (TQM), 2018).
There are many principles involving in total quality management such as direction on consumer,
engagement of staff, procedure focused, incorporated system, systematic concept, constant
betterment as well as making judgement on the basis of facts and communication.
Through these theories, company is easily managing and controlling quality of goods and
services to meet customer demands and their expectations. So that, firm make sure that
employees are more involving in decision making process, quality improvement and accomplish
goals of company as well as itself. Impressive communication is an essential part in between
3

employees and the firm. Through it, workers are easily working to improve standards, quality as
well as culture of business. This also helps in day to day activities of the firm.
Therefore, organization follows theories for effective management of operations, logistics
and supply chain for improving the quality as well as standards of products and services of
company. With the help of it, firm easily meets customer’s demand and their satisfaction for
achieving success of organization. These theories also assist in improving the culture and
performance of firm.
New product and service development
With the help of it, Land Rover focuses on quality improvement for customer satisfaction
of their product and service development for the success of business. This theory helps in
employee’s involvement and customer focus for managing quality and developing new products
and services for the success of business. Inventory management also helps in managing quality
and developing new products and services of Land Rover. Company manage inventory
effectively for new product development issues. Through it, company and staff are easily
communicated and exchanging information for developing new product and services. Without
involving workers, company faced many problems developing new products and services of
business.
Land Rover adopt process for development of new products and services in marketplace.
Process includes various stages such as idea generation, screening, concept development,
strategic analysis, product development and testing, product launch etc.
Idea generation: This step includes creating high pool of thoughts from different
sources. It involves internal sources, SWOT analysis, market research and customers and
competition.
Idea Screening: There are many factors that involves strength and weakness of Land
Rover, customer needs, ongoing trends, expected return of investment etc. followed by company
for new product development.
Concept development and testing: After idea screening, company use testing and
concept development. It includes target market, information and visualize of product.
Business strategy analysis: It is includes marketing, branding, marketing mix, product
strategies are determined for product development.
4

Product development: This stage is result in building up of image or limited production
model. After using this stage, company launch new product in marketplace.
Six Sigma to Operations Management
Six Sigma theory helps in defining, measuring, analysing, improving and controlling of
process and information that are utilized in operations management by Land Rover. With the
help of it, company is focusing on process betterment by decreasing faults and defects in
production process. Six Sigma approach is utilized in different areas of company such as
manufacturing, construction, finance, supply chain, healthcare, managing quality. Company is
utilized six sigma for quality management and process improvement strategies for customers
satisfaction (Tobescu and Seuring, 2015). This theory is also helpful for delivering products to
customers at correct time. This concept involves two major issues that ensure controlling on
quality and guarantee delivery deadlines. It is a measurement based approach for the procedure
of improvement. The purpose of six sigma method to improve procedure and enhancing
satisfaction of customer. With the help of it, company easily develops their new product and
services. In six sigma approach, there is particular cycle that is used as the tool in company.
In this cycle, five steps are involved such as defining, measuring, analysing, improving
and controlling. Define is first phase that aim is repeated plan of project. This stage centres on
particular problem that involves the scope of project and determines the needs of customers.
Measure is second step that purpose is to gather information relating project. This stage directs
on determining the factor that quantifies wants, ways to measure it, gather important information
and carry out measurement by different tools (Rastogi, 2018). Analyse is third step that aim is to
determine base reason of business skillfulness. It determines gaps in between potential and goal
execution, identify its causes and possibilities for its betterment. Improve is next phase that is
procedure through defining possible solution, way of apply, test and implement for
improvement. Control is last step that aim is to make describe solution of monitoring plan. With
the help of all steps, Land Rover can easily improve process and apply in managing operation of
business. This theory helps in customer satisfaction as well as in managing quality Therefore,
company needs to follow all these steps while they are utilizing six sigma approach for quality
improvement.
Inventory Management to Logistics Management
5

This assists in managing inventory by reducing the cost and improving quality in
production process of company. There are many reasons that affect the poor managing inventory
such as enhancing number of back orders, cancelled orders, high customer turnover rate and
enhancing number of returns. For reducing these causes, firm adopts different ways like lead
time analysis, delivery time, remove low turnover items, improving forecasting, analysis of
package size, etc. (Christopher, 2016). Inventory management is surely operations of logistics
but determiner effecting stock extend beyond logistics network. Stock direction includes many
complex variances such as risk, lead time, cost, location, transport and services level. Firm
needs to set up systems and processes for successfully operation management in the workplace.
Land Rover establishes technology for continuous improvement of process and quality
that helps in production. With the help of it, firm develop and innovate of different practical
application for improving quality of their product and meet customers demand. Company needs
continuous improvement of process of business. For that, firm manages complex information
such as financial and physical flow that takes new identification for the business process.
Inventory management methods helps organization in improving supply chain and performance
of business. These techniques are utilized by company for meeting customer demands, managing
logistics and designing production by reducing the costs (Bozarth and Handfield, 2019). There
are many reasons that inventory management is important such as balance supply and demand,
suppliers, production and marketing, prevent for economies of scale, transportation,
manufacturing etc. For inventory management, company needs to follow economic order
quantity for marking optimum size of delivery. They also require adopting just in time technique
that aims to improve the return on investment by decreasing process stock and joint carrying
costs. With the help of it, firm can easily and effectively manage quality and develop new
products and services.
Total Quality Management to Supply Chain Management
Total quality management theory helps to manage the supply chain, quality and develop
new products and services of Land Rover. It is the theory which helps in constant improvement
of quality of goods and services delivered by all players of individuals at all levels and
operations of company. The whole theory is based on involvement of all staff from top to lower
level of organization (Bromiley and Rau, 2016). So that, Land Rover make efforts on that more
and more employees are involved in the every activity of firm. Company needs to follow all
6

principles of total quality management for resolving the issues of managing operations of firm.
TQM is essential for exceeding customer's expectations, determining difficulties, building
commitment and promoting abilities for making judgement between employees.
With the help of it, firm focuses on quality and culture improvement at workplace. TQM
is a constant procedure that helps in improving policies, process and control of quality by
employees of company. Through it, firm directs on customer’s demand and needs as well as on
effective control on performance of business. By TQM, Land Rover makes efforts to review of
all aspects of functions and improving proficiency that is result in continuous scopes for
improvement of process (Schönsleben, 2016). Effective supply chain management helps in the
success of business in global context. Therefore, company draws practices highly from the
industrial technology, system practical application, operation management, logistics, procurance
and marketing. For managing practices for supply chain management, company needs to adopt
total quality management. This theory helps in improving the quality, communication,
behaviour and performance of organization by involvement of employees at workplace.
Therefore, company makes sure that all employees are more committed for solving the issues of
business.
CONCLUSION AND RECOMMENDATIONS
This report has summarized that Land Rover adopts different theories to manage
operations, logistics and supply chain at the workplace. It can be concluded that six sigma theory
help to manage operation, inventory management concept assist to arrange logistics and total
quality-management approach aids to manage supply chain for controlling of quality and
developing new product and services. It can be discussed that different applications of various
theories helps to improve quality of process and processing of new goods and services of Land
Rover.
Land Rover is an automotive company face issues that are managing quality of process
and new product and services development of business. So that, firm should apply different
theories for managing operation, logistics and supply chain management. For managing
operations, firm should follow six sigma approach that assists in controlling and measuring the
information or data utilised in process improvement. Land Rover can follow inventory
management for effective logistics administration that helps in process improvement and
7

development of new products. For solving the issues, effective supply chain management is
essential in business. Therefore, company should follow total quality-management theory for
effective supply chain management. This theory also helps in meeting customer’s requirements
and their satisfaction. With the help of it, firm easily managing quality and developing new
products and services of company.
Company should follow different applications for managing operation of business. For
example: DMAIC model helps company for determining the information and to have control on
process improvement and new product development of company. With the help of this model,
organization identifies information for improving quality of process of company. For managing
logistics, firm should utilise inventory management methods that include just in time techniques
for determining delivery deadline and customer satisfaction.
8

REFERENCES
Books and Journals
Bing, X. and et.al., 2016. Research challenges in municipal solid waste logistics
management. Waste Management. 48. pp.584-592.
Bozarth, C. C. and Handfield, R. B., 2019. OPERATIONS AND SUPPLY CHAIN
MANAGEMENT.
Bromiley, P. and Rau, D., 2016. Operations management and the resource based view: Another
view. Journal of Operations Management. 41. pp.95-106.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Heizer, J., Render, B. & Munson, Ch. (2016). Operations Management. (12th Global Ed)New
Jersey: Pearson Education Inc. Chapter 5-7
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.
Schönsleben, P., 2016. Integral logistics management: operations and supply chain management
within and across companies. CRC Press.
Slack, N., Brandon-Jones, A and Johnston, R. (2013). Operations Management. (7th Ed.)
Harlow: Pearson Education Limited. Chapter4
Tobescu, C. and Seuring, S., 2015. Internal Enablers for the Implementation of Sustainable
Supply Chain Risk Management Systems. In Logistics Management (pp. 17-26).
Springer, Cham.
Online
Rastogi. A., 2018. Six Sigma Model (DMAIC Model) for process quality improvement. [Online].
Available through: <https://www.greycampus.com/blog/quality-management/dmaic-a-
six-sigma-process-improvement-methodology>.
Total Quality Management (TQM). 2018. [Online]. Available through: <http://asq.org/learn-
about-quality/total-quality-management/overview/overview.html>.
9