Understanding Operations, Logistics and Supply Chain Management

This document provides a comprehensive understanding of operations, logistics, and supply chain management. It includes an introduction to the company, Honda, and its new product development process. The document also discusses managing quality and the triple bottom line approach. Recommendations for Honda are provided based on the theories and models discussed. The subject is Operations, Logistics, and Supply Chain Management.

Understanding Operations, Logistics and Supply
Chain Management

Table of Contents
INTRODUCTION...........................................................................................................................1
Introduction of the company........................................................................................................1
New product/ service development process.................................................................................2
Managing quality.........................................................................................................................4
Triple bottom Line.......................................................................................................................5
Recommendations........................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Operation management is designing, execution and control of operations which convert
resources into goods and services in order to implement strategy of a company. On the other
side, Logistics is implementation of an operations, therefore, it is a management of flow of
things between beginning and consumption in order to meet the requirement of customers and
cooperation (Ross, 2017). Operations and supply chain includes a broad area which cover both
manufacturing as well as service industries, which further involves the functioning of sourcing,
logistics, demand forecasting etc. In the same way, current report also provide deep
understanding about logistics, operations and supply chain management. The chosen firm for this
report is Honda, which is top automotive company who serve variety of products to their
customers at global level.
The report provide an introduction of the company and describe new product or service
development process. Then study, describe theories and models used to describe managing
quality, further, report provide triple bottom line in which economic, environmental and social
approach considerations of an organization. Lastly, it provide different recommendations on the
basis of theories and model used that helps the firm to do more better in its future.
Introduction of the company
Honda is deals in automotive company which operates its unit at international level. Such
that Swindon, England that further includes casting, engine assembly and welding. From last
many years, the company was produces more than 2 lacs car and as a result, its production is
increases up to 12% in last 3 years. The company is consider the world's largest motorcycle
manufacture from 1959 onwards and also it is the world's largest manufacturer as measured
through volume because it produce almost 14 million internal combustion engines in every year
(Jothi and Kalaivani, 2015). Honda also offered different variety of products such that
Motorcycle, power equipment (blower, trimmer, lawn mower, pumps, inflatable boats etc.),
Engines, Robots, Aircraft, Mountain bikes etc.
The company's mission is to be effective business process that helps to provide best
customer oriented services and also reduce administration cost. Further, its logistics services are
also based on corporate values i.e. to deliver the best practice. Recently the company also takes
logistics initiative such that it identify global Carbon dioxide emission and for that quoted firm is
also working to improve the transportation efficiency in shipping of vehicles. Further, its supply
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chain also tries to reduce waste from packaging material and keep updating packaging
specifications as well (Marion and et.al., 2015). As the firm deal over 50 years, which means that
it has good operational system that helps to establish its brand image at international level. Thus,
it clearly reflect that due to having strong goodwill, it has good and effective operational
management system, logistics and supply chain management system.
New product/ service development process
New product development is that process through which the company may bring new
product in a market. It is done to stay ahead in the competition and also comply with advance
technologies or to capitalize new opportunities as well. In the same way, Honda also uses this
strategy in order to meet the demand of public, the innovative business thrive also helps to
understand what their market wants, whether it make smart product improvement and develop
new products in order to exceed their customer's expectations. Therefore, the new product may
be tangible or intangible, but for Honda, it must be tangible (New product development, 2018).
For NPD, cost, quality and time are three main variables which drive customer needs, while
going though this process, company may face different challenges but to overcome this, Honda
must use the best practice and also eliminate barrier of communication which are the main
concerns of a management. New product development is based upon seven stages which are as
mention:
Idea generation: It is the first step in which Honda generates different ideas that helps to
raise the brand image. Such that they includes internal sources, customers, competitors,
distributors and suppliers in order to generate ideas. But Honda uses internal sources mainly
while developing new ideas.
Idea Screening: This stage main purpose is to create large pool of ideas in which
company have different method for doing this through market research (Genç and Di Benedetto,
2015). Such that, employees of the firm rate different ideas and the highest rating idea is further
proceed towards next stage. Lastly, the management also obtain overall rating of the company's
ability in order to launch new product in successful manner.
Concept development: Highly rate product ideas Is proceed in further stage in which the
product concept is understand in detailed manner. For that, Honda may find out ways through
which the company estimates sales volume and then use physical presentation that helps to
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increase reliability of concept test. Such that company wants to introduce automation car with
low emission of fuel, and that is why, it present physical presentation in order to understand the
product concept in deep manner.
Marketing strategy development: in this, Honda decide target market so that it will
help to raise market share. Then business analysis is done that helps to understand cost and profit
of new product which determine whether they help to meet company objectives. Thus, it also
assist management to decide best marketing strategy.
Product development: in this stage, research and development engineer develop a
product into a physical product (Baxter, 2018). Therefore, it shows whether the new product idea
can be developed into a full- fledged workable products. Then company develop prototypes
under different laboratory test are conducted under functional test.
Test marketing: Then product proceed in this stage which gives marketer an
opportunities to launch the product.
Commercialization: Last stage in which product is set to distribute in a market by set
different advertisement and marketing strategies. For that Honda sometimes uses sequential
approach that helps to increase the speed of market and this approach assist company to adopt
faster strategy that helps to attract wide range of public towards it.
Thus, developing a new product in Honda will helps to increase high competition and to
meet the changing preference of customers as well. Further, new product development process
develop new opportunities that leads to increase company and brand reputation such that
whenever the company falls in decline stage, it must follow NPD because it is consider the
lifeblood of a firm that leads to change entire working system and helps to sustain the brand
image at international level. It is also analysed that most of the company uses innovation under
NPD because these product may strengthen financial performance and also added revenue on
sales but on the other side, it is hardly beneficial for society (Tolonen and et.al., 2017). In case of
Honda, It provides a range of products that helps to raise competition and also improve value to
acquire new customers as well. As a result, it leads to generate high revenue and raise value in
market as well.
Thus, it is clearly reflected that Honda uses New product development while developing
new product into a market in order to analyse whether the product helps to generate revenue
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sources or not. That is why, to meet the demand of customer and satisfy their expectations,
Honda uses this strategy that leads to sustain brand image at global level as well.
Managing quality
Quality management is that act which monitor all activities and task that is essential to
maintain desired level of excellence. Therefore, it includes all the factor related to quality policy,
creating and implementing quality to make sure that company provide best quality of products to
their customers. Therefore, Honda also uses the same and it mainly focus on 7 principles of
quality management such that Customer focus, Thus, it is the primary focus of quality
management because Honda believes that success is only achieved when the firm attract and
retain confidence of their customer by providing best quality of vehicles (Ross, 2017). Next is
Leadership, company have leaders who take necessary changes as per requirement in order to
manage changes and also encourage their employees to make a sense of quality throughout an
organization. Another is, Engagement of people, which is another important aspect because to
run business effectively, it is essential for the business to involve all employees for providing
best quality of products.
Next is, Process approach, which shows that quality management system consist of
interrelated process and that is necessary to understand how the results are produces by
optimizing Honda's system. Improvement, is another principle in which Honda uses models and
techniques in order to improve the quality of offered products to their customers. Another is ,
Evidence based decision making, in which decisions are taken by evaluation of data so that
the entire operations are not affected (Aquilani and et.al., 2017). Last is, relationship
management in which Honda ensures that it manages good relationship with the interested
parties such that suppliers, retailers, shareholders etc.
In addition to this, for managing quality of its offered products, Honda also uses Total
Quality Management (TQM) as a quality tool which is a continual process that detect and reduce
errors in manufacturing as well as supply chain management so that company provide better
customer experience. Thus as the name suggest, it mainly focus to improve the quality of a firm's
output through its internal process. This model is also adopted by Honda and focus the above
mention principles as well (Kiran, 2016). Moreover, TQM also helps to increase awareness of
quality culture and also provide a special emphasis on teamwork so that they all meet the defined
objectives. The main reason of adopting this model is such that it will lead to a commitment
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towards continuous improvement and also provide a commitment that helps to prevent a firm to
make mistakes. Beside this, TQM also leads to employee satisfaction and as a result, it creates
long term value for the firm in the context of customers and organization itself.
In the same way, the company also provide essential requirement for successful
implementation of TQM such that Honda provide effective training session to their employees
and prepare them to make changes in attitude as well as culture. This process also make
commitment that company provide best variety of products to their customers. Further an
apparent commitment from top management in order to ensure that company provide best variety
of products to their customers ((Total quality management, 2018). Further, total quality
management is consider one of the recognize improvement and continuous process whose main
focus is on customers. Such that Honda provides high quality products and also ensures that
there will be no deviation while implementing any model. Further, it is clearly reflect that total
quality management implementation require significant training session for the employees to
make them involve within a process and once the process is implemented then it tends to result
in consistent series of increment changes as well.
Moreover, managing quality within Honda will help to increase efficiency and less
wastage such that it provides better and consistent control of major business process. Not only
this, adopting different models for managing quality will also help to better understand the needs
of customers and regulates successful working practices as well. Thus, it clearly reflected that
adopting best quality management strategy, Honda improve the risk management and leads
towards better internal communication as well (Androniceanu, 2017). In addition to this, by
implementing total quality management tool, company also provide better products at low cost
and as a result, it reduce waste and save time, further it also leads to reduce expenses and provide
the product at low rates that leads to increase customer value as well. Thus, it is clear that by
implementing best quality management tools will helps to leads a firm towards further level of
success.
Triple bottom Line
Triple bottom line is the framework which recommends that firm should commit to focus
on social and environment concern not only for earning profit. In the same way, Honda also
follows triple bottom line approach and operates under basic principle Respect for individual, in
which company desire is to respect unique character and ability of every individual person so
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that they generate trust on each other so that they perform best work in every situation. Another
is: The Three Joys” i.e. buying, selling and creating, in which company wants that every
individual who are working with Honda may come into contact directly or through some
products and they may share a sense of joy with their experience. Thus, by following the triple
bottom approach, Honda makes world largest motorcycle manufacture and also a leading auto
maker as well (Khan, Malik and Janjua, 2019).
In addition to this, quoted firm also develop strategies for water conservation such that
they ensure water conservation by audit, benchmarking, company also sustained efforts to make
sure that there is zero effluent discharge. Further, the quoted firm also integrated watershed
management programs and also work for providing continuous water supplies to farmer as well.
Not only this, company also work and providing best variety of products by complying with
advance technology such that Honda develop automated drive and its aim is to provide
worldwide joy and freedom and make the environment collision free in which any type of
vehicle may exist (Honarpour, Jusoh and Md Nor,, 2018). Therefore, with a global network of
subsidiaries and affiliates, quoted firm develop brand image at international level which range
from general purpose engines and sports car, which clearly indicated that having a brand image
and also work to make environment free from pollution is the best approach that helps it to
creates outstanding reputation from customer at worldwide level.
Recommendations
 As the company is performing best job by providing best variety of products to their
customer, but still it is recommended to the firm that company should start providing
those products (vehicle) which do not emit high gases, so that it will not creates negative
impact upon the environment.
 Moreover, company may also uses effective marketing strategy that helps to let people
know about new products and services. Such that social medial is an effective marketing
tool that helps to attract wide range of public. Or else, company also start providing
discount strategies in season time that also help to increase sales.
 Lastly, it is also recommended to the firm to use Just-in-time as a quality management
tool that helps to raise quality of offered products and it is also analysed that using this as
a managing quality tool assist the firm to satisfy human wants as well as meet their
demand too.
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CONCLUSION
By summing up above report it has been concluded that operation management, logistics
and effective supply chain management helps the firm to operates better at global level. Further,
report also concluded that Honda is consider one of the top and leading brand in automotive
sector because it has its unit around every part of the world. That is why, it continuously follow
new product development process whenever introduce any new product. Further, company also
mainly focus on quality and that is why, it uses Total quality management as a tool for managing
quality. Lastly, it has effective triple bottom approach that aid to sustain brand image.
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REFERENCES
Books and Journals
Androniceanu, A., 2017. The three-dimensional approach of Total Quality Management, an
essential strategic option for business excellence. Amfiteatru Economic. 19(44). pp.61-78.
Aquilani, B. and et.al., 2017. A systematic literature review on total quality management critical
success factors and the identification of new avenues of research. The TQM Journal. 29(1).
pp.184-213.
Baxter, M., 2018. Product design. CRC Press.
Genç, E. and Di Benedetto, C. A., 2015. Cross-functional integration in the sustainable new
product development process: The role of the environmental specialist. Industrial
Marketing Management. 50. pp.150-161.
Honarpour, A., Jusoh, A. and Md Nor, K., 2018. Total quality management, knowledge
management, and innovation: an empirical study in R&D units. Total Quality Management
& Business Excellence, 29(7-8), pp.798-816.
Jothi, K. and Kalaivani, P., 2015. A Study on Financial Performance of Honda and Toyota
Automobile Company A Comparative Analysis. Journal of Progressive Research in Social
Sciences.2(1). pp.33-35.
Khan, M. N., Malik, S. A. and Janjua, S. Y., 2019. Total Quality Management practices and
work-related outcomes. International Journal of Quality & Reliability Management.
Kiran, D. R., 2016. Total quality management: Key concepts and case studies. Butterworth-
Heinemann.
Marion, T. J. and et.al., 2015. The evolution of interorganizational relationships in emerging
ventures: An ethnographic study within the new product development process. Journal of
business Venturing. 30(1). pp.167-184.
Ross, J. E., 2017. Total quality management: Text, cases, and readings. Routledge.
Tolonen, A. and et.al., 2017. Supply chain capability creation–The creation of the supply chain
readiness for a new product during product development process. International Journal of
Production Economics. 194. pp.237-245.
Online
New product development. 2018. [Online]. Available through:
<https://engineeringproductdesign.com/knowledge-base/new-product-development/>.
Total quality management. 2018. [Online]. Available through: <https://cleartax.in/s/total-quality-
management>.
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